New York State Tax 2026: Rates, Brackets & City Tax
Picture a software engineer living in Brooklyn, earning $175,000. She pays federal income tax, New York State income tax, and New York City income tax — three separate bills, each with its own brackets and rules. By the time all three are calculated, her combined marginal rate on her next dollar of income is over 47%. This guide walks through every layer of New York taxation in 2026: the ten-bracket state system, the city surcharge, the Yonkers quirk, what's exempt, and exactly how to calculate what you owe.
Key Takeaways
- • New York State has ten income tax brackets for 2026, ranging from 3.9% to 10.9% — with the top three brackets (9.65%, 10.3%, 10.9%) applying only to incomes above $1,077,550.
- • NYC residents pay an additional 3.078%–3.876% city income tax, collected via Form IT-201 alongside state taxes — not a separate filing.
- • New York does NOT tax Social Security benefits, government pensions, or up to $20,000 in private pension income per person — a meaningful advantage over California.
- • Yonkers residents pay a 16.75% surcharge on their NY state income tax liability, plus nonresidents working in Yonkers pay 0.50% on Yonkers-earned income.
- • The standard deduction in New York is $8,000 (single) and $16,050 (MFJ) — considerably lower than the federal equivalents, meaning NY taxable income is higher than federal taxable income for most residents.
What NYC Residents Actually Pay: The Combined Picture
According to the New York City Comptroller's Office 2024 personal income tax analysis, the combined state-plus-city income tax paid by the average NYC filer represents approximately 8.1% of gross income. At the top bracket, combining the 10.9% state rate and 3.876% city rate produces a 14.776% combined state-local marginal rate — second only to California's 13.3% state rate alone. Add federal taxes and NYC residents can face the highest combined income tax burden in the United States.
New York State Income Tax Brackets 2026: Single Filers
New York restructured its income tax brackets for tax years 2021–2027, adding three new high-income brackets as part of the 2021 budget. For 2026, single filers face the following New York State rates on their NY taxable income (federal AGI adjusted for New York modifications, minus the NY standard deduction or itemized deductions):
| NY Taxable Income (Single) | NY State Tax Rate | Notes |
|---|---|---|
| $0 – $8,500 | 3.9% | Reduced from 4% in 2026 |
| $8,501 – $11,700 | 4.4% | Reduced from 4.5% |
| $11,701 – $13,900 | 4.5% | Reduced from 5.25% |
| $13,901 – $21,400 | 5.15% | Reduced from 5.5% |
| $21,401 – $80,650 | 5.4% | Reduced from 6% |
| $80,651 – $215,400 | 5.9% | Covers most middle-income filers |
| $215,401 – $1,077,550 | 6.85% | Upper-middle and high income |
| $1,077,551 – $5,000,000 | 9.65% | 2021 addition, expires 2027 |
| $5,000,001 – $25,000,000 | 10.3% | 2021 addition, expires 2027 |
| $25,000,001+ | 10.9% | Top rate, 2021 addition |
Source: New York State Department of Taxation and Finance, 2026 Tax Year Withholding Tables. The 2026 rate reductions in the first five brackets reflect legislation included in the 2026 state budget, which cut rates on income under $215,400. The high-income brackets (9.65%, 10.3%, 10.9%) remain in effect through 2032 under an extension signed in 2024.
New York State Income Tax Brackets 2026: Married Filing Jointly
| NY Taxable Income (MFJ) | NY State Tax Rate |
|---|---|
| $0 – $17,150 | 3.9% |
| $17,151 – $23,600 | 4.4% |
| $23,601 – $27,900 | 4.5% |
| $27,901 – $43,000 | 5.15% |
| $43,001 – $161,550 | 5.4% |
| $161,551 – $323,200 | 5.9% |
| $323,201 – $2,155,350 | 6.85% |
| $2,155,351 – $5,000,000 | 9.65% |
| $5,000,001 – $25,000,000 | 10.3% |
| $25,000,001+ | 10.9% |
Note that for married filing jointly filers, the 9.65% high-income bracket threshold is $2,155,350 — double the single threshold of $1,077,550. This means a dual-income household earning $1 million combined ($500,000 each) does NOT reach the 9.65% bracket and pays only 6.85% as their top state rate.
New York City Income Tax: Rates and How It Works
New York City imposes a resident personal income tax on all individuals who live in the five boroughs (Manhattan, Brooklyn, Queens, The Bronx, Staten Island). The tax is graduated with four rates, applied to New York City taxable income (which starts from the same NY state tax base):
| NYC Taxable Income (Single) | NYC Tax Rate |
|---|---|
| $0 – $12,000 | 3.078% |
| $12,001 – $25,000 | 3.762% |
| $25,001 – $50,000 | 3.819% |
| $50,001+ | 3.876% |
| NYC Taxable Income (MFJ / Qualifying Widow) | NYC Tax Rate |
|---|---|
| $0 – $21,600 | 3.078% |
| $21,601 – $45,000 | 3.762% |
| $45,001 – $90,000 | 3.819% |
| $90,001+ | 3.876% |
The NYC tax is filed on Form IT-201 (NYC residents file on the same form as state taxes). NYC withholding is handled by your employer and appears separately on your W-2. If you live in NYC for only part of the year — for example, you moved in from New Jersey in June — you are taxed as a NYC resident for the months you actually lived there. You complete the part-year resident section of IT-201.
Nonresidents who work in New York City but live outside the five boroughs do NOT pay NYC income tax. This is a common misconception — if you commute in from Hoboken, NJ or Greenwich, CT, you owe NY state income tax on your NY-source wages but no NYC tax. However, you do pay commuter taxes in some cases (see below).
The Metropolitan Commuter Transportation Mobility Tax (MCTMT)
The MCTMT is a payroll tax that funds the MTA, affecting self-employed individuals and employers in the New York metropolitan area. For self-employed individuals with net earnings from self-employment allocated to the MCTD (Metropolitan Commuter Transportation District — NYC plus Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester counties):
- 0% on net self-employment earnings of $50,000 or less
- 0.27% on net self-employment earnings of $50,001–$100,000
- 0.34% on net self-employment earnings of $100,001–$150,000
- 0.60% on net self-employment earnings over $150,000
Employers pay the MCTMT as 0.34% of payroll for employees earning over $312,500 per quarter. This is separate from — and in addition to — the state and city income tax. Self-employed individuals in the MCTD who miss MCTMT payments face penalties from the NYS Department of Taxation and Finance.
Yonkers Income Tax: The Surcharge Explained
Yonkers, the fourth-largest city in New York State, imposes a separate local income tax. Unlike most local taxes, it operates as a surcharge on your New York State income tax rather than a separate bracket-based calculation:
Yonkers Tax Structure 2026
Yonkers residents: Pay 16.75% of their New York State income tax as a surcharge. This is filed on Form Y-203. Example: $4,000 NY state tax × 16.75% = $670 Yonkers surcharge.
Nonresidents working in Yonkers: Pay 0.50% of wages earned in Yonkers as a flat earnings tax. Filed on Form Y-203. Applies only to Yonkers-source income.
Combined impact at $120,000 income (Yonkers resident): ~$7,100 NY state tax + $1,190 Yonkers surcharge (16.75%) + ~$4,300 federal = roughly 21% combined effective rate before federal SALT deduction impact.
New York Standard Deduction and Personal Exemptions
New York does not conform to the federal standard deduction. The 2026 New York State standard deductions are:
| Filing Status | NY Standard Deduction 2026 | Federal Standard Deduction 2026 | Extra Taxable Income in NY |
|---|---|---|---|
| Single | $8,000 | $16,100 | +$8,100 more taxable in NY |
| Married Filing Jointly | $16,050 | $32,200 | +$16,150 more taxable in NY |
| Head of Household | $11,200 | $24,150 | +$12,950 more taxable in NY |
| Married Filing Separately | $8,000 | $16,100 | +$8,100 more taxable in NY |
Source: New York State Department of Taxation and Finance, IT-201 instructions 2026. The gap between federal and NY standard deductions is a meaningful tax cost — a single filer in the 5.9% NY bracket has approximately $478 more in state tax because of the deduction gap alone. New York does not provide additional standard deduction amounts for age or blindness.
What New York Does NOT Tax: Important Exemptions
New York's high rates are partially offset by several meaningful exclusions that distinguish it from truly high-tax states like California:
- Social Security benefits: Fully exempt from New York State income tax. Unlike California, New York does not tax Social Security — a significant advantage for retirees on fixed income.
- Government pension income: Pensions from the federal government, the State of New York, or New York local governments are fully exempt. This includes NYCTRS (teacher pensions), NYCERS, and NYS Employees' Retirement System income.
- Private pension exclusion: Up to $20,000 per person ($40,000 for a married couple) in private pension income — including 401(k) distributions and IRA withdrawals — is exempt from New York income tax for filers age 59½ or older. Amounts above $20,000 are taxed at regular NY rates.
- Military pay: Active duty military pay is fully exempt from New York income tax. Veteran's pension benefits are also exempt.
- Interest income on U.S. Treasury obligations: Exempt from New York State tax (though taxable federally).
Real-World Example: What a Brooklyn Software Engineer Pays in 2026
Let's calculate the full state and city tax burden for a single software engineer living in Brooklyn earning $175,000 in W-2 wages, taking the NY standard deduction, with no additional adjustments:
Step-by-Step NY + NYC Tax Calculation (2026)
Gross income: $175,000
Less NY standard deduction (single): −$8,000
NY taxable income: $167,000
NY State Tax Calculation:
3.9% on first $8,500 = $331.50
4.4% on $8,501–$11,700 ($3,200) = $140.80
4.5% on $11,701–$13,900 ($2,200) = $99.00
5.15% on $13,901–$21,400 ($7,500) = $386.25
5.4% on $21,401–$80,650 ($59,250) = $3,199.50
5.9% on $80,651–$167,000 ($86,350) = $5,094.65
Total NY State Tax: ≈ $9,252
NYC Tax Calculation (same taxable base):
3.078% on first $12,000 = $369.36
3.762% on $12,001–$25,000 ($13,000) = $489.06
3.819% on $25,001–$50,000 ($25,000) = $954.75
3.876% on $50,001–$167,000 ($117,000) = $4,534.92
Total NYC Tax: ≈ $6,348
Combined NY State + NYC Tax: ≈ $15,600
Effective combined NY+NYC rate on $175,000 gross income: approximately 8.9%
New York Filing Requirements and Key Deadlines
New York state income tax returns are filed on Form IT-201 (full-year residents) or Form IT-203 (part-year residents and nonresidents). Key deadlines and rules:
- Filing deadline: April 15, 2027 for tax year 2026 returns (same as federal)
- Automatic extension: 6-month automatic extension to October 15, 2027 by filing Form IT-370 or paying online. Like federal, this extends the filing deadline only — taxes owed must be paid by April 15.
- Estimated payments: Required if you expect to owe $300 or more in NY state income tax. Due April 15, June 15, September 15, and January 15. Use Form IT-2105.
- Filing threshold: Required to file if NY AGI exceeds the NY standard deduction for your filing status — effectively $8,000 for single filers, $16,050 for MFJ.
- Nonresident filing: Required for all taxpayers with New York-source income, including wages from NY employers, income from NY rental property, and income from NY partnerships or S-corps.
New York vs. Other High-Tax and Low-Tax States
| State | Top State Rate | Local Income Tax | Social Security | Total Burden Est. |
|---|---|---|---|---|
| New York (NYC) | 10.9% | 3.876% city | Exempt | ~15.9% |
| California | 13.3% | None | Taxed | ~13.5% |
| New Jersey | 10.75% | Newark 1% | Exempt | ~13.2% |
| Florida | 0% | None | Exempt | ~6.97% |
| Texas | 0% | None | Exempt | ~8.6% |
| Pennsylvania | 3.07% | Philadelphia 3.75% | Exempt | ~10.2% |
Source: Tax Foundation 2026 State Tax Competitiveness Index; WalletHub 2026 State Tax Burden Study. Social Security treatment per AARP 2026 state tax guide.
New York Tax Planning Strategies
Maximize Above-the-Line Deductions
Federal above-the-line deductions like 401(k) contributions, SEP-IRA contributions, and HSA contributions reduce federal AGI — and since New York starts its income tax calculation from federal AGI (with modifications), these deductions also reduce your New York taxable income. A self-employed New Yorker contributing the maximum $70,000 to a Solo 401(k) in 2026 reduces their NY state tax bill by approximately $4,795 (at the 6.85% bracket) in addition to the federal savings.
529 College Savings Plans: New York's Valuable Deduction
New York offers a state income tax deduction for contributions to New York's 529 Direct Plan (NY529) — up to $5,000 per taxpayer ($10,000 for married filing jointly) per year. At the 6.85% bracket, a married couple maxing out the $10,000 deduction saves $685 in state income taxes annually. New York's deduction is only available for contributions to the NY state plan specifically — out-of-state 529 contributions are not deductible.
Pass-Through Entity Tax (PTET) for Business Owners
New York State offers a Pass-Through Entity Tax (PTET) election that allows partnerships and S-corporations to pay New York income tax at the entity level — up to 10.9% — instead of at the individual owner level. The individual owner then receives a credit equal to the PTET paid. Because the PTET is a business expense paid at the entity level, it is deductible for federal income tax purposes on the business return — effectively providing a workaround for the federal SALT deduction cap that individual owners would otherwise face. For high-income pass-through owners, this strategy can save substantial amounts. See our SALT deduction guide for the full mechanics.
Frequently Asked Questions
What is the New York state income tax rate for 2026?
New York has ten income tax brackets in 2026, ranging from 3.9% on the first $8,500 of taxable income to 10.9% on income over $25 million. The 2026 budget reduced rates in the first five brackets modestly. Most middle-income single filers — those earning $80,000–$215,000 — fall in the 5.9% bracket. The top brackets of 9.65%, 10.3%, and 10.9% apply only to incomes over $1,077,550, $5 million, and $25 million respectively, and are extended through 2032.
How much is NYC city income tax?
New York City residents pay a graduated city income tax with rates of 3.078%, 3.762%, 3.819%, and 3.876%. The 3.876% top rate applies to income over $50,000 for single filers. At the top bracket, combining the 10.9% state rate and 3.876% city rate produces a 14.776% combined marginal rate. NYC tax is reported on Form IT-201 alongside state taxes — there is no separate NYC return. It is withheld from your paycheck by your employer.
Does New York tax Social Security benefits?
No. New York State fully exempts Social Security benefits from income tax — an important advantage for retirees compared to states like California and Minnesota that tax Social Security. New York also exempts government pension income (NYS, NYC, federal) entirely, and exempts up to $20,000 per person in private pension income (including 401(k) and IRA withdrawals) for those 59½ and older. These exemptions make New York more retiree-friendly than its headline income tax rates suggest.
What is the New York state standard deduction for 2026?
New York's standard deduction for 2026 is $8,000 for single filers and $16,050 for married filing jointly — substantially lower than the federal standard deductions of $16,100 and $32,200. This means NY taxable income is $8,100–$16,150 higher than federal taxable income for most standard deduction takers. For a single filer in the 5.9% NY bracket, the gap costs approximately $478 more in state tax compared to what they would owe if NY used the federal standard deduction.
What is the Yonkers income tax surcharge?
Yonkers residents pay a surcharge equal to 16.75% of their New York State income tax liability — not 16.75% of their income. If you owe $5,000 in NY state tax, your Yonkers surcharge is $837.50. This is filed on Form Y-203. Nonresidents who work in Yonkers (but live elsewhere) pay a separate 0.50% flat earnings tax on wages earned in Yonkers. The surcharge is in addition to — and calculated after — the state income tax.
Who must file a New York state income tax return?
You must file a New York State income tax return (Form IT-201 for residents, IT-203 for part-year and nonresidents) if your NY adjusted gross income exceeds the NY standard deduction for your filing status — effectively $8,000 for single filers and $16,050 for married filing jointly. Nonresidents with any New York-source income (from NY employers, NY property, NY partnerships) must also file Form IT-203 regardless of where they live.
How is New York City tax collected — separately from state tax?
No — NYC income tax is filed as part of the New York State return on Form IT-201, not as a separate filing. NYC residents complete the NYC section of the same form. Employers withhold NYC income tax alongside NY state withholding from your paycheck, and the amounts appear on your W-2. There is no separate NYC tax return. If you owe additional NYC tax, you pay it with your NY state filing or make estimated payments using Form IT-2105.
Calculate Your New York State Tax
Use our income tax calculator to estimate your combined federal, state, and NYC tax liability — and see your effective rate versus the marginal rate.
Use the Income Tax Calculator