New York · Historic Rehabilitation Tax Credit
Historic Rehabilitation Tax Credit in New York (2026)
Claim a 20% tax credit on qualified rehabilitation expenses for certified historic structures, taken ratably over 5 years. New York has a progressive income tax with a top rate of 10.9%, so a New York filer's combined marginal rate on the next dollar at $74,314 of income is about 27.4% (22% federal + 5.4% NY).
2026 savings example for New York
Planning estimate for a single filer earning $74,314 (New York median household income in LevyIO's state dataset) who claims a $5,000 credit. Federal tax uses the 2026 IRS brackets after the $16,100 standard deduction; NY tax uses the state brackets in LevyIO's dataset and assumes the state follows the federal treatment.
Estimated total savings
$5,000
Federal savings
$5,000
$7,519 → $2,519 · 22% bracket
NY state savings
$0
Federal credit only; check for a state credit
Combined marginal rate
27.4%
Credits do not depend on the bracket
Federal × New York marginal rates (2026, single)
Gross-income ranges include the federal standard deduction. The NY column is the state marginal rate at the midpoint of each range. A credit saves its face value regardless of bracket.
| Federal bracket | Gross income (single) | NY marginal | Combined | Per $1,000 |
|---|---|---|---|---|
| 10% | $16,100 - $28,500 | 5.4% | 15.4% | $1,000 |
| 12% | $28,500 - $66,500 | 5.4% | 17.4% | $1,000 |
| 22% | $66,500 - $121,800 | 5.9% | 27.9% | $1,000 |
| 24% | $121,800 - $217,875 | 5.9% | 29.9% | $1,000 |
| 32% | $217,875 - $272,325 | 6.85% | 38.85% | $1,000 |
| 35% | $272,325 - $656,700 | 6.85% | 41.85% | $1,000 |
| 37% | Over $656,700 | 6.85% | 43.85% | $1,000 |
Eligibility & forms
Owners of certified historic structures who undertake substantial rehabilitation
- 20% credit for certified historic structures
- Must be a substantial rehabilitation (exceed adjusted basis)
- Must follow Secretary of Interior's Standards
Federal forms: Form 3468, NPS Form 10-168
New York filing notes
NYC residents face the highest combined rates nationally. The estate tax 'cliff' means losing the entire exemption if your estate exceeds 105% of the threshold. NY aggressively audits departing residents.
Common mistakes: Not getting Part 1 certification before starting work; Failing to meet the substantial rehabilitation test; Not spreading credit over 5 years as required.
Frequently asked questions
How much can the Historic Rehabilitation Tax Credit save a New York taxpayer in 2026?
Credits reduce tax dollar-for-dollar. In LevyIO's example, a single filer with $74,314 of income (the New York median household income in our state dataset) and a $5,000 credit would cut 2026 federal tax from $7,519 to $2,519, a $5,000 saving. Whether New York offers a matching state credit depends on the NY return, so the estimate counts federal savings only.
What is the New York income tax rate for 2026?
New York has a progressive income tax with a top rate of 10.9%. The NY standard deduction in LevyIO's dataset is $8,000 single / $16,050 married. Top rate 10.9%. NYC adds 3.078-3.876%. Combined up to 14.776%. Estate tax 'cliff' at $6.94M.
Who qualifies for the Historic Rehabilitation Tax Credit in New York?
Owners of certified historic structures who undertake substantial rehabilitation. The federal rules are the same in every state; the requirements are: 20% credit for certified historic structures; Must be a substantial rehabilitation (exceed adjusted basis); Must follow Secretary of Interior's Standards. New York filers should confirm on the NY return whether the state follows the federal treatment.
Which forms do I file to claim the Historic Rehabilitation Tax Credit?
Federal: Form 3468, NPS Form 10-168. New York: check the New York State Department of Taxation instructions for the matching state schedule. Common mistakes: Not getting Part 1 certification before starting work; Failing to meet the substantial rehabilitation test; Not spreading credit over 5 years as required.
Historic Rehabilitation Tax Credit in other states
Sources
Reviewed 2026-09-17. Estimates are educational planning figures computed from the IRS 2026 inflation adjustments and LevyIO's state bracket dataset; they are not tax advice.