New York State Income Tax Overview
New York imposes a progressive state income tax with rates ranging from 4% to 10.9%. The tax structure includes multiple brackets, with higher rates applying to incomes above $215,400 for single filers. A supplemental high-earner surcharge pushes the effective top rate above 10% for those earning over $5 million. Combined with federal taxes, New York residents face one of the highest overall tax burdens in the country.
The state standard deduction is $8,000 for single filers and $16,050 for married couples filing jointly. New York allows itemized deductions that largely mirror federal rules, though state and local taxes paid cannot be deducted on the state return. Personal exemptions were eliminated in favor of the higher standard deduction amounts.
NYC Income Tax and Yonkers Surcharge
Residents of New York City face an additional city income tax that ranges from 3.078% to 3.876%, depending on taxable income. This city tax applies to all five boroughs and is withheld from paychecks just like state tax. For a worker earning $100,000, the NYC tax alone adds roughly $3,000 to $3,500 per year in additional withholding beyond the state tax.
Yonkers residents do not pay NYC tax but instead pay a surcharge equal to 16.75% of their net state tax liability. Non-residents who work in Yonkers pay a reduced surcharge of 0.5% of wages earned in the city. These local taxes make it essential for New York workers to specify their residence correctly on withholding forms to avoid under- or over-payment throughout the year.
Metropolitan Commuter Transportation Mobility Tax
Self-employed individuals and employers in the Metropolitan Commuter Transportation District (MCTD)—which includes New York City and the surrounding suburban counties—are subject to the MCTMT. For self-employed individuals earning net earnings above $50,000, the tax rate is 0.34%. Employers in the district pay 0.34% on payroll expenses. This tax funds public transportation infrastructure in the metro area.
The combination of state tax, city tax, and the MCTMT means New York City residents can face a combined state and local marginal tax rate exceeding 14% at the highest income levels. Workers should use this calculator to understand the full impact of all layers of taxation on their take-home pay and plan their withholding allowances accordingly.