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 2025.
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 Range | Tax Rate |
|---|---|
| $0 – $8,500 | 4% |
| $8,501 – $11,700 | 4.5% |
| $11,701 – $13,900 | 5.25% |
| $13,901 – $80,650 | 5.5% |
| $80,651 – $215,400 | 6% |
| $215,401 – $1,077,550 | 6.85% |
| $1,077,551 – $5,000,000 | 9.65% |
| $5,000,001 – $25,000,000 | 10.3% |
| $25,000,001 + | 10.9% |
Sales Tax
Property Tax
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?
What is the STAR program?
Is clothing taxed in New York?
Does New York tax Social Security?
Neighboring State Guides
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