Taxes in Ithaca, New York
Complete tax guide for Ithaca, NY. State income tax up to 6.85%, 1.8% property tax, 5.49% sales tax. Calculate your total tax burden.
State Income Tax
6.85%
New York
Property Tax
1.8%
Effective rate
Sales Tax
5.49%
Combined rate
Tax Burden
Very High
Ithaca, NY Tax Overview
Population
32,108
Median Income
$65,800
Cost of Living
136.6 (100 = avg)
State Income Tax
6.85%
Local Income Tax
1.81%
Median Home Price
$452,000
Ithaca Tax Calculator
Pre-filled with Ithaca median: $65,800
Total Tax Burden in Ithaca
$16,822
Take-Home: $48,978 · Effective Rate: 25.57%
Federal Tax
$6,090
9.26% eff.
NY State + Local
$5,698
8.66% eff.
FICA
$5,034
7.65% eff.
Take-Home
$48,978
74.43% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $65,800.00 | $5,483.33 |
| Federal Income Tax | -$6,090.00 | -$507.50 |
| New York State Tax | -$4,507.30 | -$375.61 |
| Ithaca Local Tax (1.81%) | -$1,190.98 | -$99.25 |
| Social Security (6.2%) | -$4,079.60 | -$339.97 |
| Medicare (1.45%) | -$954.10 | -$79.51 |
| Take-Home Pay | $48,978.02 | $4,081.50 |
Property Tax in Ithaca
Median Home
$452,000
Annual Tax
$8,136
Monthly Tax
$678
Effective Rate
1.8%
Sales Tax in Ithaca
Combined Rate
5.49%
State Portion
~3.0%
Local Portion
~2.5%
The combined sales tax rate in Ithaca is 5.49%, which is below the national average of 7.12%. On a $100 purchase, you would pay $5.49 in sales tax.
Tax Burden Comparison
| Tax Type | Ithaca | New York Avg | National Avg |
|---|---|---|---|
| Income Tax | 6.85% + 1.81% | 6.85% | 4.6% |
| Property Tax | 1.8% | ~1.8% | 1.1% |
| Sales Tax | 5.49% | ~5.49% | 7.12% |
| Overall Burden | Very High | — | Moderate |
Tax Saving Tips for Ithaca Residents
- New York's income tax rate of 6.85% is above average. Maximize pre-tax retirement contributions (401k up to $23,500, IRA up to $7,000) to reduce both federal and state taxable income.
- Ithaca has a local income tax of 1.81%. If you work remotely, verify whether you owe city tax based on where you work or where you live. Some cities only tax people who work within city limits.
- Property tax in Ithaca (1.8%) is above the national average. Check if you qualify for homestead exemptions or assessment appeals to reduce your property tax bill.
- Use a Health Savings Account (HSA) if eligible. Contributions are tax-deductible ($4,300 individual, $8,550 family), growth is tax-free, and withdrawals for medical expenses are tax-free.
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See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Ithaca, NY?
Ithaca, New York has a state income tax rate up to 6.85%, plus a local income tax of 1.81%. The property tax rate is 1.8% and the combined sales tax rate is 5.49%.
How much is property tax in Ithaca?
The effective property tax rate in Ithaca is 1.8%. On the median home price of $452,000, this equals approximately $8,136 per year or $678 per month. This is above the national average of 1.1%.
What is the sales tax rate in Ithaca?
The combined sales tax rate in Ithaca is 5.49%, which includes both state and local components. This is below the national average combined rate of approximately 7.12%.
How does Ithaca's tax burden compare to other cities?
Ithaca has a very high overall tax burden. The effective total tax rate for a median-income household is approximately 37.8%. The combination of 6.85% state income tax, 1.8% property tax, and 5.49% sales tax determines the total burden. Cost of living index is 136.6 (100 = national average).
Are there any local taxes in Ithaca?
Yes. Ithaca imposes a local income tax of 1.81% in addition to the state income tax of 6.85%.