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 layers, 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 state rate schedule, the city tax, the Yonkers surcharge, what's exempt, and exactly how to estimate what you owe.
June 11, 2026 Source Review
This page was refreshed against New York Tax Department 2026 withholding and estimated-tax materials, including NYS, NYC, Yonkers, standard deduction, MCTMT, retirement-income, and nonresident guidance. Withholding publications are planning tools; verify final return instructions before filing.
- NY Tax withholding rate changes — 2026 NYS and Yonkers withholding changes effective January 1, 2026; NYC tables unchanged.
- Form IT-2105-I (2026) — Official 2026 estimated tax instructions with NYS, NYC, Yonkers, and MCTMT planning schedules.
- Publication NYS-50-T-NYS (1/26) — 2026 New York State withholding tables and exact calculation methods.
- Publication NYS-50-T-NYC (1/26) — New York City withholding tables and exact calculation methods used for 2026 payrolls.
- Publication NYS-50-T-Y (1/26) — Yonkers resident surcharge and nonresident earnings-tax withholding methods.
- NY standard deduction table — Current Tax Department standard deduction table available during the 2026 planning year.
- NY retired-person tax guidance — Social Security, government pension, and pension/annuity exclusion guidance.
- NY nonresident filing FAQ — Nonresident, NYC resident, Yonkers, and telecommuting source-income rules.
Key Takeaways
- • New York State's 2026 planning schedule uses nine graduated rate layers from 3.9% to 10.9%, with the 9.65%, 10.3%, and 10.9% layers beginning above $1,077,550 for single filers.
- • 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 allows federally taxable Social Security benefits to be excluded from New York adjusted gross income and provides pension exclusions for eligible retirees.
- • 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 current NY standard deduction table lists $8,000 (single) and $16,050 (MFJ), materially lower than the federal standard deduction used for 2026 planning.
What NYC Residents Actually Pay: The Combined Picture
At the top bracket, combining the 10.9% New York State rate and 3.876% New York City resident rate produces a 14.776% combined state-local marginal rate before federal tax. For most residents, the effective rate is much lower because only the top slice of taxable income is taxed at the top marginal rate.
New York State Income Tax Brackets 2026: Single Filers
For 2026 planning, single filers and married filing separately filers use the following New York State rates on NY taxable income (federal AGI adjusted for New York modifications, minus the NY standard deduction or itemized deductions). This table follows the official 2026 estimated-tax instructions:
| 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% | 2026 planning schedule |
| $11,701 – $13,900 | 5.15% | 2026 planning schedule |
| $13,901 – $80,650 | 5.4% | Reduced from prior-year schedule |
| $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% | High-income layer |
| $5,000,001 – $25,000,000 | 10.3% | High-income layer |
| $25,000,001+ | 10.9% | Top NYS rate |
Source: New York State Department of Taxation and Finance, Form IT-2105-I (2026) and 2026 withholding publications. These are planning schedules; use final tax-year forms and instructions before filing.
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 | 5.15% |
| $27,901 – $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 layer begins at $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% layer and pays 6.85% as its top state rate before credits and other adjustments.
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 funds the MTA and can affect certain employers and self-employed individuals in the Metropolitan Commuter Transportation District. The Tax Department divides the MCTD into two zones: Zone 1 is New York City, and Zone 2 includes Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester counties. For 2026 estimated-tax planning, self-employed individuals use these broad thresholds:
- No self-employment MCTMT if allocated net earnings from self-employment are $150,000 or less for the zone.
- Zone 1 self-employment MCTMT: 0.60% of allocated net earnings when the Zone 1 threshold is exceeded.
- Zone 2 self-employment MCTMT: 0.34% of allocated net earnings when the Zone 2 threshold is exceeded.
Employer MCTMT rules are separate from individual estimated-tax rules and vary by zone, payroll expense, quarter, and employer type. Treat this as a flag to check the NY Tax MCTMT guidance, not as a substitute for filing instructions.
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. For 2026 planning, LevyIO uses the current New York Tax Department standard deduction table and flags the final-filing check:
| 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 standard deduction table. The gap between federal and NY standard deductions is a meaningful planning cost — a single filer in the 5.9% NY bracket has approximately $478 more in state tax because of the deduction gap alone. Verify final tax-year instructions before filing.
What New York Does NOT Tax: Important Exemptions
New York's high rates are partially offset by several meaningful exclusions. The retirement-income rules are especially important because the headline state rate does not tell the whole story:
- Social Security benefits: Federally taxable Social Security and Tier 1 railroad retirement benefits can be excluded from New York adjusted gross income.
- Government pension income: Pensions from the federal government, New York State, or New York local governments may qualify for a New York subtraction when included in federal adjusted gross income.
- Pension and annuity exclusion: Eligible taxpayers age 59½ or older may exclude up to $20,000 per person of qualifying pension and annuity income included in federal adjusted gross income.
- U.S. government interest: Interest income on U.S. obligations can generally be subtracted for New York purposes when it is included 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
5.15% on $11,701–$13,900 ($2,200) = $113.30
5.4% on $13,901–$80,650 ($66,750) = $3,604.50
5.9% on $80,651–$167,000 ($86,350) = $5,094.65
Total NY State Tax: ≈ $9,285
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: ≈ $15,633
Effective combined NY+NYC rate on $175,000 gross income: approximately 8.9%, before credits and other adjustments.
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: Tax year 2026 individual returns are generally due April 15, 2027 unless the Tax Department announces a different deadline.
- Automatic extension: A six-month filing extension can move the filing deadline to October 15, 2027, but any tax due still has to be paid by the original due date.
- Estimated payments: Form IT-2105 is used for 2026 estimated payments; the voucher schedule lists April 15, June 15, September 15, 2026 and January 15, 2027 installment dates.
- Filing threshold: Residents generally compare NY adjusted gross income with the NY standard deduction for their filing status.
- Nonresident filing: Nonresidents and part-year residents with New York-source income use Form IT-203 and should apply the NY-source allocation rules.
New York vs. Other High-Tax and Low-Tax States
| State | Top State Rate | Local Income Tax | Social Security | Planning Note |
|---|---|---|---|---|
| New York (NYC) | 10.9% | 3.876% city | Exempt | Highest NYS+NYC marginal layer is 14.776% |
| California | 13.3% | None | Exempt | Separate 1% tax may apply above $1 million |
| New Jersey | 10.75% | Newark 1% | Exempt | Local and property-tax context can dominate |
| Florida | 0% | None | Exempt | No wage income tax; sales/property taxes still matter |
| Texas | 0% | None | Exempt | No wage income tax; property taxes can be high |
| Pennsylvania | 3.07% | Philadelphia 3.75% | Exempt | Local earned income tax can change the answer |
Comparison is broad planning context, not a filing calculation. Use official state instructions or a state-specific calculator for final estimates.
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 $72,000 to a Solo 401(k) in 2026 reduces their NY state tax bill by approximately $4,932 (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's 2026 planning schedule uses nine graduated state rate layers, from 3.9% on the first taxable-income band to 10.9% on taxable income over $25 million. Most middle-income single filers fall in the 5.4% or 5.9% layer. The 9.65%, 10.3%, and 10.9% layers begin above $1,077,550, $5 million, and $25 million for single filers.
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 allows federally taxable Social Security benefits and Tier 1 railroad retirement benefits to be excluded from New York adjusted gross income. New York also provides exclusions for federal, New York State, and New York local government pension income, plus up to $20,000 per person of qualifying pension and annuity income for eligible taxpayers age 59½ or older.
What is the New York state standard deduction for 2026?
For 2026 planning, LevyIO uses the current New York Tax Department standard deduction table: $8,000 for single filers and married filing separately, $16,050 for married filing jointly or qualifying surviving spouses, and $11,200 for heads of household. These amounts are lower than the federal standard deduction used for 2026 planning, so NY taxable income is often higher than federal taxable income for standard deduction takers.
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 New York Income Tax Calculator