New York County taxes are New York City taxes: the county covers the borough of Manhattan, and the five boroughs share a single tax code. If you live, own property, or do business there, expect a city personal income tax that tops out at 3.876%, property tax rates that run above 20% of assessed value for small homes, a combined sales tax of 8.875%, and separate layers of transfer and mortgage recording tax when real estate changes hands.
Personal Income Tax for Residents
New York City imposes a personal income tax on every resident individual, estate, and trust under NYC Administrative Code § 11-1701. You count as a resident if you are domiciled in the state, or if you keep a permanent home in New York and spend more than 183 days here during the tax year. Active-duty military members are excluded from the 183-day count.1New York State Senate. New York Tax Law 605 – General Provisions and Definitions
The brackets for single filers and those married filing separately in 2026 are:
- 3.078% on income up to $12,000
- 3.762% from $12,001 to $25,000
- 3.819% from $25,001 to $50,000
- 3.876% on income above $50,000
Married couples filing jointly reach each bracket at slightly higher dollar thresholds, but at the same percentages. These rates have not changed since 2017.2Office of the New York City Comptroller. The NYC Personal Income Tax Before and After the Pandemic Your city tax base mirrors your state taxable income, so the deductions and adjustments you already take on your state return carry through.
Residents owe the tax on all income, no matter where it was earned. Living in Manhattan and working in New Jersey does not reduce what you owe the city. Non-residents who commute into Manhattan generally do not pay this tax. The one exception: city government employees who live outside the five boroughs and were hired after January 4, 1973, must file Form NYC-1127 and pay an amount equal to what a city resident would owe.3NYC Department of Finance. Personal Income Tax and Non-Resident Employees
Property Tax on Manhattan Real Estate
The NYC Department of Finance assesses every piece of real estate in New York County each year. Under Real Property Tax Law § 1802, every property falls into one of four classes:
- Class 1: one-, two-, and three-family homes and certain vacant land
- Class 2: all other residential property, including apartment buildings, co-ops, and condos (but not hotels)
- Class 3: utility company property
- Class 4: everything else, including offices, retail, and industrial buildings
Class drives both the assessment ratio and the tax rate.4FindLaw. New York Real Property Tax Law RPT 1802 – Classification of Real Property in a Special Assessing Unit
The Department of Finance first estimates market value from local sales data and construction costs, then multiplies by the assessment ratio: 6% for Class 1 and 45% for Classes 2, 3, and 4.5NYC Department of Finance. Determining Your Assessed Value For a Class 1 home with an estimated market value of $1 million, the assessed value works out to $60,000.
For fiscal year 2026, the rates applied to that assessed value are roughly 20.6% for Class 1, about 12.3% for Class 2, around 11.1% for Class 3, and approximately 10.8% for Class 4. The owner of the $1 million Class 1 home above would owe about $12,378 for the year. Rates reset every fiscal year based on the city budget and the total assessed value in each class.
Notice of Property Value and Appeal Deadlines
Every January, the Department of Finance mails a Notice of Property Value showing your property’s estimated market value and assessed value for the next fiscal year.6NYC Department of Finance. Notice of Property Value You can challenge the valuation by filing an appeal with the NYC Tax Commission, but the deadlines are hard. For 2026, Class 1 appeals are due by March 16, and Classes 2, 3, and 4 are due by March 2.7NYC Tax Commission. NYC Tax Commission
Payment Schedule
The city’s property tax year runs July 1 through June 30. If your assessed value is $250,000 or less, you pay quarterly, with bills due July 1, October 1, January 1, and April 1. Quarterly payers get a 15-day grace period before interest starts, but when interest does start it is calculated back to the original due date, not the grace date. Properties assessed above $250,000 pay semi-annually, with bills due July 1 and January 1.8NYC Department of Finance. Property Tax Due Dates When a due date falls on a weekend or federal holiday, payment moves to the next business day.
STAR Credit for Homeowners
If the property is your primary residence, the School Tax Relief (STAR) program may offset part of your school taxes. Basic STAR, available as a credit paid by check or direct deposit, requires combined income of $500,000 or less. Enhanced STAR raises the benefit for homeowners age 65 or older with income of $110,750 or less in 2026. New homeowners can receive STAR only as a credit; the exemption that reduces the bill directly is closed to anyone who did not already have it by 2015.9New York State Department of Taxation and Finance. STAR Eligibility
Transfer Taxes When You Sell
Every deed transfer in New York County above $25,000 triggers the city’s Real Property Transfer Tax under NYC Administrative Code § 11-2102.10American Legal Publishing. New York City Administrative Code 11-2102 – Imposition of Tax The same tax applies when a controlling economic interest in a property-owning entity changes hands above the same threshold. The base is gross consideration, which includes any mortgage debt the buyer takes over.
For one-, two-, and three-family homes, individual condo units, and co-op units, the rate is 1% at or below $500,000 and 1.425% above $500,000. For everything else, including commercial property, the rate is 1.425% at or below $500,000 and 2.625% above $500,000. The statute puts the tax on the grantor, so the seller is legally responsible, and payment is due to the Department of Finance within 30 days of deed delivery.11NYC Department of Finance. Real Property Transfer Tax
State Mansion Tax and Supplemental Tax
New York State adds its own layers on high-value residential purchases, paid by the buyer. The base mansion tax under Tax Law § 1402-a is a flat 1% on any residential sale of $1 million or more.12New York State Department of Taxation and Finance. Publication 577 – FAQs Regarding the Additional Tax on Transfers of Residential Real Property for $1 Million or More A supplemental tax under Tax Law § 1402-b kicks in at $2 million in NYC and climbs with price, from 0.25% at the $2 million mark up to 2.9% at $25 million and above.13New York State Senate. New York Tax Law 1402-B A buyer at the top of the scale pays 3.9% in combined state additional tax before the city’s transfer tax is counted.
Mortgage Recording Tax
When you take out a mortgage on New York County property, you owe a combined state and city recording tax before the loan can be recorded. The combined rate works out to roughly 2.05% for mortgages under $500,000 and about 2.175% for larger mortgages, with the exact figure depending on property type and available exemptions. Residential mortgages on one- or two-family homes get a $10,000 deduction off the mortgage amount before one state component is calculated. The Department of Finance recommends the ACRIS calculator for the precise amount on a specific loan.14NYC Department of Finance. Mortgage Recording Tax15New York State Department of Taxation and Finance. Mortgage Recording Tax
Sales and Use Tax
The combined sales tax rate in New York County is 8.875%: 4% state, 4.5% city, and a 0.375% Metropolitan Commuter Transportation District surcharge.16NYC311. Sales Tax It applies to most retail purchases, prepared food, and taxable services.
Clothing and footwear priced under $110 per item are exempt from both the state and city portions. At $110 or more per item, the full 8.875% applies.17NYC Department of Finance. Business NYS Sales Tax Groceries, prescription drugs, and most unprepared food are exempt. The use tax, at the same 8.875%, applies when you buy taxable goods outside the city and bring them in without having paid an equivalent tax elsewhere.
Business Taxes
Unincorporated Business Tax
Sole proprietorships, partnerships, and LLCs that have not elected corporate taxation owe the Unincorporated Business Tax at a flat 4% on net income allocated to the city. A built-in credit wipes out the tax entirely if your liability is $3,400 or less, with a partial credit phasing out between $3,401 and $5,400.18NYC Department of Finance. Unincorporated Business Tax Very small operations with modest net income pay nothing.
Business Corporation Tax
Corporations doing business in the city pay the Business Corporation Tax, generally at 8.85% of business income allocated to the city. Qualifying small businesses may pay as little as 6.5%, and financial corporations pay 9%. Every corporation also owes a minimum fixed-dollar tax, from $25 for NYC receipts under $100,000 up to $200,000 for receipts over $1 billion. For 2026, a corporation is treated as doing business in the city once it derives $1,128,000 or more in NYC-sourced receipts.19NYC Department of Finance. Business Corporation Tax
How to File
The city personal income tax is reported on the state return. Full-year residents file Form IT-201, and the city tax is calculated as part of that return rather than on a separate filing.20New York State Department of Taxation and Finance. Instructions for Form IT-201 Full-Year Resident Income Tax Return You enter your county of residence and school district code in the residency section, which routes the city portion to the right jurisdiction.
Residents whose income fell below the state filing threshold can still claim the NYC School Tax Credit by filing Form NYC-210 on its own.21NY.gov. Form NYC-210, Claim for New York City School Tax Credit It is a small refundable credit that often goes unclaimed by lower-income filers. Most filers e-file. Property tax payments run through the NYC CityPay portal, where you can also check your balance and payment history. Keep copies of returns and supporting records for at least three years.
Penalties and Interest if You Pay Late
Missing the income tax filing deadline brings a penalty of 5% of the unpaid tax for each month or partial month the return is late, capped at 25%. File more than 60 days late and the minimum penalty is $100 or the total due, whichever is less. A separate late-payment penalty of 0.5% per month, also capped at 25%, applies when you file on time but do not pay in full.22New York State Department of Taxation and Finance. Interest and Penalties
Interest accrues on top of any penalty. For the first quarter of 2026, the interest rate on late income tax payments is 9.5% per year, compounded daily, and the rate is reset quarterly.23New York State Department of Taxation and Finance. Interest Rates 1/01/2026 – 3/31/2026 Property tax interest runs from the original due date if you miss the 15-day grace period, so put each quarterly or semi-annual installment on the calendar well ahead of time.