New York · Investment Advisory Fees Deduction
Investment Advisory Fees Deduction in New York (2026)
Investment advisory and management fees are currently suspended for individuals but remain deductible for trusts and estates through 2025. 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 removes $5,000 from taxable income. 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
$1,370
Federal savings
$1,100
$7,519 → $6,419 · 22% bracket
NY state savings
$270
$3,416 → $3,146 · 5.4% marginal
Combined marginal rate
27.4%
≈ $274 saved per $1,000 deducted
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. The last column is the tax saved per $1,000 deducted at that combined rate.
| Federal bracket | Gross income (single) | NY marginal | Combined | Per $1,000 |
|---|---|---|---|---|
| 10% | $16,100 - $28,500 | 5.4% | 15.4% | $154 |
| 12% | $28,500 - $66,500 | 5.4% | 17.4% | $174 |
| 22% | $66,500 - $121,800 | 5.9% | 27.9% | $279 |
| 24% | $121,800 - $217,875 | 5.9% | 29.9% | $299 |
| 32% | $217,875 - $272,325 | 6.85% | 38.85% | $389 |
| 35% | $272,325 - $656,700 | 6.85% | 41.85% | $419 |
| 37% | Over $656,700 | 6.85% | 43.85% | $439 |
Eligibility & forms
Investors paying fees for investment management within IRAs or trusts
- Suspended for individuals 2018-2025 under TCJA
- Still deductible for trusts and estates
- Must be paid outside the investment account for IRAs
Federal forms: Schedule A, Form 1041
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: Trying to deduct personal investment fees under current law; Not using IRA funds to pay fees directly; Missing trust-level deduction opportunities.
Frequently asked questions
How much can the Investment Advisory Fees Deduction save a New York taxpayer in 2026?
In LevyIO's example, a single filer with $74,314 of income (the New York median household income in our state dataset) who removes $5,000 from taxable income saves about $1,100 in 2026 federal tax (22% marginal bracket) plus about $270 in New York tax (5.4% state marginal rate), roughly $1,370 combined. It is a planning estimate computed from the 2026 IRS brackets and LevyIO's NY bracket data, not a survey figure.
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 Investment Advisory Fees Deduction in New York?
Investors paying fees for investment management within IRAs or trusts. The federal rules are the same in every state; the requirements are: Suspended for individuals 2018-2025 under TCJA; Still deductible for trusts and estates; Must be paid outside the investment account for IRAs. New York filers should confirm on the NY return whether the state follows the federal treatment.
Which forms do I file to claim the Investment Advisory Fees Deduction?
Federal: Schedule A, Form 1041. New York: check the New York State Department of Taxation instructions for the matching state schedule. Common mistakes: Trying to deduct personal investment fees under current law; Not using IRA funds to pay fees directly; Missing trust-level deduction opportunities.
Investment Advisory Fees Deduction 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.