Yes, New York does have a state income tax. It is a progressive tax with rates from 4% to 10.9%, applied to residents on all income and to nonresidents on income earned from New York sources. If you live in New York City or Yonkers, you also owe a local income tax on top of the state tax, which is why two people with the same salary can end up with very different total bills depending on their address.
State Tax Rates for 2025
New York Tax Law Section 601 sets nine brackets that climb from 4% on the first dollars of taxable income to 10.9% on taxable income above $25 million.1New York State Senate. New York Tax Law 601 – Imposition of Tax For a single filer in tax year 2025 (the return filed in 2026), the brackets are:
- 4% up to $8,500
- 4.5% from $8,501 to $11,700
- 5.25% from $11,701 to $13,900
- 5.5% from $13,901 to $80,650
- 6% from $80,651 to $215,400
- 6.85% from $215,401 to $1,077,550
- 9.65% from $1,077,551 to $5,000,000
- 10.3% from $5,000,001 to $25,000,000
- 10.9% above $25,000,000
The dollar thresholds shift for other filing statuses. Married couples filing jointly hit the 5.5% bracket at a higher income than single filers, though the 10.9% top rate kicks in at $25 million regardless of status. Because the system is graduated, only the income inside each bracket is taxed at that bracket’s rate. A single filer earning $100,000 pays 6% only on the slice between $80,651 and $100,000, not on the whole $100,000.
Who Has to File
You generally need to file a New York return if you are a resident whose income exceeds the standard deduction for your filing status, or if you are a nonresident or part-year resident with income from New York sources.2Department of Taxation and Finance. Do I Need to File Income Tax Filing can be worthwhile even when you owe nothing, since it is how you claim a refund of withheld tax or a refundable credit.
Residency drives how much income the state can reach. A resident owes tax on income from any source worldwide. A nonresident owes tax only on income earned from New York sources, such as wages for work physically performed in the state, rent from New York property, or business income tied to the state. New York defines a resident as someone domiciled in the state, or someone who maintains a permanent place of abode in New York and spends 184 days or more there during the tax year.3Department of Taxation and Finance. Income Tax Definitions That second test, sometimes called statutory residency, can catch people who consider another state home but spend substantial time in New York. If you split time between states, keep careful records of your physical presence; the day count is enforced strictly.
Part-year residents report income earned while a resident on a worldwide basis, and income earned while a nonresident only to the extent it comes from New York sources. Full-year residents file Form IT-201; nonresidents and part-year residents file Form IT-203.2Department of Taxation and Finance. Do I Need to File Income Tax
Local Income Taxes on Top of State Tax
New York City
If you live in New York City, you owe a city personal income tax in addition to the state tax. City rates run from 3.078% to 3.876% depending on income and filing status, with the top city rate hitting single filers above $50,000. Combined with the state’s rates, a high-earning city resident can face a total state and city rate above 14%.
Yonkers
Yonkers residents pay a surcharge equal to 16.75% of their net state income tax. The surcharge applies to the tax, not the income: a resident with $2,000 of state tax owes an additional $335 to Yonkers. Nonresidents who earn wages in Yonkers pay a separate earnings tax of 0.50% on those wages.4Department of Taxation and Finance. Yonkers Withholding Tax Tables and Methods
Both the city and Yonkers taxes are calculated on your state return. There is no separate municipal filing.5Department of Taxation and Finance. New York City, Yonkers, and MCTMT
The MCTMT for Self-Employed Downstate Earners
Self-employed people with earnings inside the Metropolitan Commuter Transportation District may also owe the Metropolitan Commuter Transportation Mobility Tax. The district covers New York City and the counties of Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester. Starting in 2026, the self-employed MCTMT rate is 0.60% on net earnings over $150,000 in Zone 1 (New York City plus Rockland, Nassau, Suffolk, Orange, Putnam, and Dutchess), and 0.34% on net earnings over $150,000 in Zone 2 (Westchester).6Department of Taxation and Finance. Summary of 2025 Corporation Tax and Personal Income Tax Changes The $150,000 threshold is per individual, including for married couples filing jointly.
What Reduces Your New York Bill
Before rates are applied, you subtract a standard deduction. For tax year 2025, the amounts are $8,000 single, $16,050 married filing jointly or surviving spouse, $11,200 head of household, $8,000 married filing separately, and $3,100 for a single filer claimed as a dependent on someone else’s return. New York does not allow a personal exemption for yourself or your spouse, but it does give a $1,000 exemption for each qualifying dependent.7Legal Information Institute. N.Y. Comp. Codes R. and Regs. Tit. 20 116.1 – New York Exemptions You generally choose between the state standard deduction and a New York itemized deduction; the state’s itemized rules do not mirror every federal line.
Two credits matter for most filers. The state Earned Income Credit equals 30% of your federal EITC and is refundable, so it can produce a payment even when you owe no state tax.8Department of Taxation and Finance. Earned Income Credit (New York State) The Empire State Child Credit, for tax year 2026, is up to $1,000 per qualifying child under four and $500 per qualifying child from four through sixteen. It phases out by $16.50 for every $1,000 of federal adjusted gross income above $110,000 (married filing jointly), $75,000 (single, head of household, or surviving spouse), or $55,000 (married filing separately), and is refundable for taxpayers who qualify.9Department of Taxation and Finance. Empire State Child Credit
How Retirement Income Is Treated
New York is comparatively generous to retirees. Social Security benefits are fully exempt from state income tax. Pensions from New York State and local government retirement systems, including NYSLRS, are fully exempt, as are federal government pensions.10Office of the New York State Comptroller. Taxes and Your Pension
For private pensions and annuity income, residents who are 59½ or older can exclude up to $20,000 per year from state taxable income. Each spouse with qualifying pension income can take the exclusion separately, for a combined $40,000.11Department of Taxation and Finance. Personal Income Tax – Tax Expenditure Estimates Distributions from 401(k) plans, IRAs, and similar accounts qualify to the extent they represent pension or annuity income included in federal adjusted gross income.
Deadlines, Extensions, and Late Penalties
The filing deadline is April 15, matching the federal date. You can request an automatic six-month extension by filing Form IT-370, which pushes the filing deadline to October 15.12NY.Gov. Apply for an Extension of Time to File an Income Tax Return An extension buys time to file, not time to pay. Any tax owed is still due April 15, and interest and penalties start accruing after that date.
Missing the deadline without an extension, or extending without paying, is expensive. The late filing penalty is 5% of unpaid tax per month or partial month, up to 25%; if a return is more than 60 days late, the minimum penalty is the lesser of $100 or the total tax due. The late payment penalty is 0.5% per month, also capped at 25%. Interest runs on unpaid tax from the original due date at a rate set by the Commissioner, defaulting to 7.5% per year if no rate is set.13Department of Taxation and Finance. Interest and Penalties These penalties can run at the same time, so filing on time even when you cannot pay in full avoids the steeper 5%-per-month filing penalty. The state offers installment agreements for taxpayers who cannot pay the full balance at once.14New York State Senate. New York Tax Law 684 – Interest on Underpayment