Understanding Your New York State Tax Liability
Living and working in the Empire State comes with a unique set of financial responsibilities, most notably the New York Tax Calculator. New York has one of the most complex progressive income tax systems in the country, with rates ranging from 4% to 10.9% for the highest earners. If you are a resident of New York City or Yonkers, you also face additional local income taxes that can significantly impact your take-home pay.
Our New York Tax Calculator is designed to help you estimate your 2024 and 2025 state tax liability. By inputting your income and filing status, you can see exactly where you fall in the tax brackets and how much you might owe. Whether you are planning your withholdings or preparing for tax season, understanding these numbers is the first step toward financial clarity.
How New York State Income Tax Works
New York uses a progressive tax system, meaning that as your income rises, the tax rate on the additional income increases. It is not a flat tax where everyone pays the same percentage. Instead, your income is sliced into "brackets," and each slice is taxed at a different rate.
However, New York has a unique "tax benefit recapture" rule for high earners. If your income exceeds a certain threshold, the benefit of the lower tax brackets is gradually phased out, meaning your entire income could effectively be taxed at the top rate.
2024 New York State Tax Brackets
The following tables outline the tax brackets for the 2024 tax year (filed in 2025). These brackets determine your marginal tax rate—the rate you pay on your highest dollar earned.
Single Filers & Married Filing Separately
| Taxable Income Range | Tax Rate | Base Tax |
|---|---|---|
| $0 – $8,500 | 4.00% | $0 |
| $8,501 – $11,700 | 4.50% | $340 |
| $11,701 – $13,900 | 5.25% | $484 |
| $13,901 – $80,650 | 5.50% | $600 |
| $80,651 – $215,400 | 6.00% | $4,271 |
| $215,401 – $1,077,550 | 6.85% | $12,356 |
| $1,077,551 – $5,000,000 | 9.65% | $71,413 |
| $5,000,001 – $25,000,000 | 10.30% | $449,929 |
| Over $25,000,000 | 10.90% | $2,509,929 |
Married Filing Jointly
| Taxable Income Range | Tax Rate | Base Tax |
|---|---|---|
| $0 – $17,150 | 4.00% | $0 |
| $17,151 – $23,400 | 4.50% | $686 |
| $23,401 – $27,800 | 5.25% | $967 |
| $27,801 – $161,550 | 5.50% | $1,198 |
| $161,551 – $323,200 | 6.00% | $8,554 |
| $323,201 – $2,155,350 | 6.85% | $18,253 |
| $2,155,351 – $5,000,000 | 9.65% | $143,755 |
| $5,000,001 – $25,000,000 | 10.30% | $418,264 |
| Over $25,000,000 | 10.90% | $2,478,264 |
New York Standard Deductions (2024)
Before applying the tax rates, you can reduce your gross income by the Standard Deduction. This is a flat amount that the state allows you to deduct, which lowers your taxable income. For many taxpayers, taking the standard deduction is easier and more beneficial than itemizing.
- Single: $8,000
- Married Filing Jointly: $16,050
- Head of Household: $11,200
- Married Filing Separately: $8,000
New York City & Yonkers Local Taxes
One of the unique aspects of New York taxation is the presence of local income taxes. If you live in New York City (Bronx, Brooklyn, Manhattan, Queens, Staten Island) or Yonkers, you must pay a city income tax on top of your state tax.
- New York City Tax: NYC also has a progressive tax system with rates ranging from approximately 3.078% to 3.876%. This is one of the highest local income taxes in the United States. It applies to residents only.
- Yonkers Tax: Yonkers residents pay an income tax surcharge, which is calculated as a percentage of their net state tax (typically around 16.75%). Non-residents who work in Yonkers also pay a smaller non-resident earnings tax (0.5%).
Self-Employed?
High Income Earners and the "Millionaire's Tax"
New York has been typically aggressive in taxing high earners, often referred to as the "Millionaire's Tax." While the progressive nature of the tax code means everyone pays more as they earn more, the top marginal rates in New York are among the highest in the nation.
The top marginal rate of 10.9% kicks in for income over $25 million, but rates are already significantly elevated for those earning over $1 million (starting at 6.85% and jumping to 9.65%).
Capital Gains Taxation: comprehensive tax planning is essential because New York does not have a lower tax rate for long-term capital gains. Your investment profits are taxed as ordinary income. This means if you sell a business or a large stock portfolio, that income is stacked on top of your wages and taxed at your top marginal rate, which can result in a combined federal, state, and city tax bill approaching 50% or more.
The Residency Audit Risk: Moving to Florida?
"Tax flight" is a major concern for the state budget. If you move out of New York to a low-tax state like Florida or Texas, be prepared for scrutiny. The New York Department of Taxation and Finance is famous for its sophisticated and aggressive Residency Audits.
To successfully untether yourself from New York taxation, you must pass two distinct tests:
- The Domicile Test: You must prove you have abandoned your NY home and established a new permanent home elsewhere. Auditors look at "primary factors" like where your family lives, where your business is active, where your "near and dear" items (wedding albums, heirlooms) are kept, and where you spend time. They also look at "secondary factors" like where your car is registered, where you vote, and where your bank statements are sent.
- The Statutory Residency Test (The 183-Day Rule): Even if you are domiciled elsewhere (e.g., you officially live in Florida), if you maintain a "permanent place of abode" in NY (like a kept apartment or even a vacation home you have access to) and spend more than 183 days (any part of a day counts as a full day) in the state, you are taxed as a full resident on your worldwide income.
The SALT Deduction Cap Workaround (PTET)
The federal Tax Cuts and Jobs Act of 2017 limited the State and Local Tax (SALT) deduction to $10,000. This hit New Yorkers hard, as property and income taxes frequently exceed this cap by tens of thousands of dollars.
Pass-Through Entity Tax (PTET): To mitigate this, New York introduced the PTET. This optional tax allows partnerships, LLCs, and S-Corps to pay state tax at the entity level. The partners or shareholders then get a credit on their state personal income tax return. This effectively converts non-deductible state personal income taxes into a fully deductible business expense for federal purposes.
Note: The PTET election must be made annually by March 15th. If you own a business, ask your CPA about this immediately, as it can save significant amounts in federal taxes.
Property Tax Relief: The STAR Program
Homeowners in New York pay some of the highest property taxes in the nation, funding one of the most expensive public school systems. The School Tax Relief (STAR) program offers some relief.
- Basic STAR: Exemption for homeowners with income under $500,000. This exempts the first $30,000 of the full value of a home from school taxes.
- Enhanced STAR: Larger benefit for seniors (65+) with qualifying incomes (typically under $98,700 for 2024). This exempts the first $81,400 of the full value of a home.
Most new homeowners will not see this as a reduction on their tax bill but will instead receive a STAR check in the mail each fall. It is crucial to register for this benefit with the NY State Department of Taxation and Finance as soon as you buy your home.
Estimated Tax Payments
New York requires you to pay your tax throughout the year. If you expect to owe more than $300 in NY state tax (and NYC/Yonkers tax) after subtracting your withholdings and credits, you must make quarterly estimated tax payments.
Due Dates:
- April 15 (1st Quarter)
- June 15 (2nd Quarter)
- September 15 (3rd Quarter)
- January 15 of the following year (4th Quarter)
Failure to pay enough throughout the year can result in an underpayment penalty, which is essentially an interest charge on the money you should have paid.
Frequently Asked Questions
Related Calculators
To get a complete picture of your finances, try our other calculators:
- Federal Tax Calculator - Estimate your IRS liability.
- Paycheck Calculator - See your take-home pay after all withholdings.
- Sales Tax Calculator - Calculate sales tax for purchases in any state.
Disclaimer: This calculator is for educational purposes only and provides an estimate based on 2024 tax laws. It does not constitute professional tax advice. For accurate filing, please consult a qualified CPA or tax professional, or visit the New York State Department of Taxation and Finance.