New York State Income Tax: Rates, Who Pays in 2021

You don't necessarily have to live in New York to pay New York state tax.
Tina OremApr 28, 2021

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New York state income tax rates are 4%, 4.5%, 5.25%, 5.9%, 5.97%, 6.33%, 6.85%, 9.65%, 10.3% and 10.9%. New York state income tax brackets and income tax rates depend on taxable income and filing status. Also, residency status determines what’s taxable.

New York City and Yonkers have their own local income tax on top of the state tax. New York City income tax rates are 3.078%, 3.762%, 3.819% and 3.876%.

New York state income tax rates and tax brackets

Tax rate

Taxable income bracket

Tax owed

4%

$0 to $8,500

4% of taxable income

4.5%

$8,501 to $11,700

$340 plus 4.5% of the amount over $8,500

5.25%

$11,701 to $13,900

$484 plus 5.25% of the amount over $11,700

5.9%

$13,901 to $21,400

$600 plus 5.9% of the amount over $13,900

5.97%

$21,401 to $80,650

$1,042 plus 5.97% of the amount over $21,400

6.33%

$80,651 to $215,400

$4,579 plus 6.33% of the amount over $80,650

6.85%

$215,401 to $1,077,550

$13,109 plus 6.85% of the amount over $215,400

9.65%

$1,077,550 to $5,000,000

$72,166 plus 9.65% of the amount over $1,077,550

10.30%

$5,000,001 to $25,000,000

$450,683 plus 10.30% of the amount over $5,000,000

10.90%

$25,000,001 and up

$2,510,683 plus 10.90% of the amount over $25,000,000

Tax rate

Taxable income bracket

Tax owed

4%

$0 to $17,150

4% of taxable income

4.5%

$17,151 to $23,600

$686 plus 4.5% of the amount over $17,150

5.25%

$23,601 to $27,900

$976 plus 5.25% of the amount over $23,600

5.9%

$27,901 to $43,000

$1,202 plus 5.9% of the amount over $27,900

5.97%

$43,001 to $161,550

$2,093 plus 5.97% of the amount over $43,000

6.33%

$161,551 to $323,200

$9,170 plus 6.33% of the amount over $161,550

6.85%

$323,201 to $2,155,350

$19,403 plus 6.85% of the amount over $323,200

9.65%

$2,155,351 to $5,000,000

$144,905 plus 9.65% of the amount over $2,155,350

10.30%

$5,000,001 to $25,000,000

$419,414 plus 10.30% of the amount over $5,000,000

10.90%

Over $25,000,000

$2,479,414 plus 10.90% of the amount over $25,000,000

Tax rate

Taxable income bracket

Tax owed

4%

$0 to $12,800

4% of taxable income

4.5%

$12,801 to $17,650

$512 plus 4.5% of the amount over $12,800

5.25%

$17,651 to $20,900

$730 plus 5.25% of the amount over $17,650

5.9%

$20,901 to $32,200

$901 plus 5.9% of the amount over $20,900

5.97%

$32,201 to $107,650

$1,568 plus 5.97% of the amount over $32,200

6.33%

$107,651 to $269,300

$6,072 plus 6.33% of the amount over $107,650

6.85%

$269,301 to $1,616,450

$16,304 plus 6.85% of the amount over $269,300

9.65%

$1,616,451 to $5,000,000

$108,584 plus 9.65% of the amount over $1,616,450

10.30%

$5,000,001 to $25,000,000

$435,097 plus 10.30% of the amount over $5,000,000

10.90%

$25,000,001 and up

$2,495,097 plus 10.90% of the amount over $25,000,000

» Find a local tax preparer in New York for free: See who's available to help with your taxes in your area

Do I have to pay New York state income tax?

Generally, you have to file a New York state tax return if:

  • You’re a New York resident and you’re required to file a federal tax return or your federal gross income plus New York additions was more than $4,000 ($3,100 if you’re single and someone can claim you as a tax dependent).

  • You’re not a New York resident but got income from a source in New York during the tax year.

If you’re not a resident of New York but your primary workplace is there, your days telecommuting during the pandemic are still considered days worked in New York unless your employer established an office at your telecommuting location. Generally, you will continue to owe New York State income tax on income earned while telecommuting.

Am I a resident for New York state income tax purposes?

There are three types of residency statuses when it comes to New York state tax. They determine what portion of your income the state will tax.

Types of residency status in New York

If your New York residency type is ...

… New York taxes this part of your income

Resident

All income from all sources inside and outside New York

Part-year resident

All income received while a resident, plus income from New York sources while a nonresident

Nonresident

Income from New York sources if your adjusted gross income is higher than your New York standard deduction

RESIDENT STATUS RULES

In general, you’re a resident of New York for tax purposes if your permanent home is there (your “domicile”), or if you leased or owned a place there (a “place of abode”) and spent 184 days or more in New York state during the tax year.

  • New York considers your permanent home the place you intend to return to after things like vacations, business trips, military assignments or the end of a college semester.

  • There are special rules for people who were in a foreign country for at least 450 of 548 consecutive days. (You can see the rules here for how New York determines residency status.)

  • Where you vote, where your driver’s license and registration are issued or where your will is are not primary factors in establishing domicile. It’s more about where your stuff is and where you spend your time.

You file Form IT-201. You may have extra paperwork if you live in New York City or Yonkers, since those cities assess local income tax on top of state tax.

PART-YEAR RESIDENT STATUS RULES

Generally, you’re a part-year resident of New York if you were a nonresident for some of the tax year. This is often the case for people who moved to New York from another state.

  • If you’re a part-year resident, you pay New York state tax on all income you received during the part of the tax year you were a resident of New York, plus on income from New York sources while you were a nonresident.

You file Form IT-203. You may have extra paperwork if you were living in New York City or Yonkers, since those cities assess local income tax on top of state tax.

NONRESIDENT STATUS RULES

Nonresidents still may have to pay New York state tax on income they receive from New York sources. This means you may need to file a New York state tax return even if you live in another state but made money from:

  • Services performed in New York.

  • Rent from real estate you own in New York.

  • The sale or transfer of real estate in New York.

  • Income from a New York business, trade or profession.

  • Lottery winnings in the state if over $5,000.

If these apply to you, you would file Form IT-203.

6 things to know about New York state income tax

  1. New York’s tax-filing deadline generally follows the federal tax deadline.

  2. Tax software will handle your state tax return (though sometimes for an extra fee).

  3. Wondering where your New York state income tax refund is? Good news: You can check the status of your state tax refund online.

  4. New York is particular about the terms “place of abode” and “domicile.” In general, a “place of abode” is any dwelling; a “domicile” is your primary residence, and you can have only one.

  5. If you can’t afford your tax bill and owe $20,000 or less, New York offers payment plans. Typically, you get three years to pay your bill.

  6. You can also apply for the state’s Offer in Compromise program, which might allow you to pay less than you owe.

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