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New York Tax Guide: State & City Income Taxes

Navigate New York's complex tax landscape including state brackets, NYC local taxes, and available deductions for 2026.

Quick Answer

New York 2025 state income tax has 9 brackets from 4% on the first $8,500 to 10.9% on income above $25 million. NYC residents pay an additional city income tax up to 3.876%, for a combined top rate exceeding 14.7%. The NY standard deduction is $8,000 single / $16,050 joint. Sales tax is 8.52%; clothing under $110 and groceries are exempt.

10.9%
Top State Income Rate
3.876%
Top NYC Rate
8.52%
Combined Sales Tax
1.62%
Property Tax Rate

Tax Overview

New York has one of the most complex and highest tax systems in the nation, with a progressive state income tax featuring nine brackets and a top rate of 10.9% on income above $25 million. The state also has elevated rates for income above $1 million and $5 million. For New York City residents, the burden is even higher, with city income taxes adding up to 3.876%, creating a combined state and city rate exceeding 14.7% for the highest earners.

Sales tax in New York has a state rate of 4%, with local additions that push the combined rate to about 8% in most areas and 8.875% in New York City. Clothing and footwear items under $110 are exempt from the state sales tax (and from NYC sales tax), providing meaningful savings. Groceries and prescription drugs are exempt statewide.

Property taxes in New York are among the highest in the country, particularly in the New York City suburbs on Long Island and in Westchester County. The statewide effective rate averages around 1.62%. New York City has a separate property tax system with rates that appear high on paper but are applied to lower assessed values. The state offers a STAR (School Tax Relief) program that provides property tax relief to homeowners, with enhanced benefits for seniors.

Income Tax

NYC residents face additional city income tax up to 3.876%, creating combined rates above 14.7% for the highest earners.

Income RangeTax Rate
$0 – $8,5004%
$8,501 – $11,7004.5%
$11,701 – $13,9005.25%
$13,901 – $80,6505.5%
$80,651 – $215,4006%
$215,401 – $1,077,5506.85%
$1,077,551 – $5,000,0009.65%
$5,000,001 – $25,000,00010.3%
$25,000,001 +10.9%

Sales Tax

State Rate4.00%
Avg. Local Rate4.52%
Combined Rate8.52%

Property Tax

Effective Rate1.62%
Median Annual Bill$5,884

Key Deductions in New York

  • ✓New York standard deduction of $8,000 (single) or $16,050 (married filing jointly)
  • ✓STAR property tax exemption for homeowners
  • ✓College tuition credit or deduction (up to $10,000)
  • ✓NYC and Yonkers resident tax credits
  • ✓Child and dependent care credit (refundable)
  • ✓Earned income credit (30% of federal EITC)

Filing Information

Filing Deadline: April 15

Tax Authority: New York State Department of Taxation and Finance

Phone: (518) 457-5181

Website: https://www.tax.ny.gov

Frequently Asked Questions

How much is the total tax rate for NYC residents?
New York City residents pay state income tax (up to 10.9%), city income tax (up to 3.876%), and the MTA mobility tax surcharge. The combined top rate exceeds 14.7%, making it one of the highest income tax burdens in the nation.
What is the STAR program?
STAR (School Tax Relief) provides property tax relief for owner-occupied primary residences. Basic STAR is available to homeowners with income under $500,000, and Enhanced STAR provides greater savings for seniors age 65+ with income under $98,000.
Is clothing taxed in New York?
Individual clothing and footwear items priced under $110 are exempt from the 4% state sales tax and the NYC sales tax. Items priced at $110 or more are fully taxable. This exemption has been permanent since 2012.
Does New York tax Social Security?
No, New York fully exempts Social Security benefits from state income tax. The state also provides a $20,000 pension and annuity income exclusion for residents age 59 1/2 and older.
What are New York's income tax brackets for 2025?
New York's 2025 income tax brackets for single filers: 4% on the first $8,500; 4.5% on $8,501–$11,700; 5.25% on $11,701–$13,900; 5.5% on $13,901–$80,650; 6% on $80,651–$215,400; 6.85% on $215,401–$1,077,550; 9.65% on $1,077,551–$5,000,000; 10.3% on $5,000,001–$25,000,000; and 10.9% above $25,000,000.
What is New York's standard deduction for 2025?
New York's standard deduction for 2025 is $8,000 for single filers and $16,050 for married filing jointly. This is separate from the federal standard deduction — New York starts its calculation from federal adjusted gross income, not federal taxable income.
How do I contact the New York Department of Taxation and Finance?
The New York State Department of Taxation and Finance is available at tax.ny.gov or by phone at (518) 457-5181. For online filing and account management, use the Online Services portal at online.tax.ny.gov. NYC residents with city tax questions can also contact the NYC Department of Finance at finance.nyc.gov.

Neighboring State Guides

VermontMassachusettsConnecticutNew JerseyPennsylvania

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