New York imposes a state income tax on residents, part-year residents, and nonresidents with New York-source income, with graduated rates running from 4% on the lowest taxable income to 10.9% on taxable income above $25 million. The system is progressive, so only the income within each bracket is taxed at that bracket’s rate, not your entire income at the highest rate you reach. If you live in New York City or Yonkers, you owe additional local income tax on top of the state amount.
2025 Tax Brackets for Single Filers
These are the rates that apply to the return you’ll file in 2026.1New York State Senate. New York Tax Law 601 – Imposition of Tax
- 4% on income up to $8,500
- 4.5% on $8,501 to $11,700
- 5.25% on $11,701 to $13,900
- 5.5% on $13,901 to $80,650
- 6% on $80,651 to $215,400
- 6.85% on $215,401 to $1,077,550
- 9.65% on $1,077,551 to $5,000,000
- 10.3% on $5,000,001 to $25,000,000
- 10.9% on income over $25,000,000
The dollar thresholds shift for married filing jointly, married filing separately, and head of household, though the 10.9% top rate kicks in at $25 million regardless of filing status. Because rates are graduated, a single filer earning $100,000 doesn’t pay 6% on the full amount. Only the slice between $80,651 and $100,000 is taxed at 6%, with lower rates applying to the income below.
Standard Deduction and Dependents
New York reduces your taxable income by a standard deduction before applying the rates above. For tax year 2025:
- Single: $8,000
- Married filing jointly or surviving spouse: $16,050
- Head of household: $11,200
- Married filing separately: $8,000
- Single and claimed as a dependent on someone else’s return: $3,100
There’s no personal exemption for you or your spouse, but you can claim a $1,000 exemption for each qualifying dependent.2Legal Information Institute. N.Y. Comp. Codes R. and Regs. Tit. 20 116.1 – New York Exemptions New York’s itemized deduction rules don’t mirror every federal line item, and you generally choose between the state standard deduction and a New York-specific itemized deduction.
Who Has to File
You generally need to file a New York return if you’re a resident whose income exceeds your standard deduction, or if you’re a nonresident or part-year resident with income from New York sources.3Department of Taxation and Finance. Do I Need to File Income Tax Even when you owe nothing, filing is often worth it: you may be due a refund of withheld tax, or you may qualify for refundable credits like the state earned income credit.
Resident, Nonresident, Part-Year Resident
Residency controls how much of your income New York can tax. A resident owes tax on all income from any source worldwide. A nonresident owes tax only on income from New York sources, such as wages for work physically performed in the state, rental income from New York property, or business income tied to the state.4Department of Taxation and Finance. Income Tax Definitions
You’re a resident under either of two tests: your domicile is in New York, or you keep a permanent place of abode in the state and spend 184 days or more there during the tax year. That second test, sometimes called statutory residency, can pull in people who think of another state as home but spend significant time in New York. If you split time between states, keep careful records of your physical location. The day count is strict.
Part-year residents report worldwide income for the months they lived in New York, and New York-source income only for the months they didn’t.
Local Income Taxes on Top of the State Rate
New York City
New York City residents owe a city personal income tax with rates from 3.078% to 3.876%. For single filers, the top city rate of 3.876% applies to taxable income above $50,000. Combined with the state’s progressive rates, a high-earning New York City resident can face a combined state and city rate above 14%.
Yonkers
Yonkers residents pay a surcharge of 16.75% of their net state income tax. That’s 16.75% of the tax, not of income. On a $2,000 state tax bill, the Yonkers surcharge adds $335. Nonresidents who work in Yonkers instead pay an earnings tax of 0.50% on those wages.5Department of Taxation and Finance. Yonkers Withholding Tax Tables and Methods
MCTMT for the Self-Employed
Self-employed individuals earning income in the Metropolitan Commuter Transportation District — New York City plus Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester counties — may owe the Metropolitan Commuter Transportation Mobility Tax. Starting in 2026, the self-employed rate is 0.60% on net earnings above $150,000 in Zone 1 (New York City plus Rockland, Nassau, Suffolk, Orange, Putnam, and Dutchess) and 0.34% on net earnings above $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 calculated per individual, even on a joint return.
You don’t file separate city or Yonkers returns. Both are reported on your state income tax return, and the state Department of Taxation and Finance collects on behalf of these localities.7Department of Taxation and Finance. New York City, Yonkers, and MCTMT
Retirement Income
New York treats retirement income favorably. Social Security benefits are completely exempt from state income tax. Pensions from New York State or local government retirement systems, and federal government pensions, are also fully exempt.8Office of the New York State Comptroller. Taxes and Your Pension
For private pensions and annuity income, residents 59½ or older can exclude up to $20,000 per year from state taxable income. A married couple where both spouses receive qualifying pension income can each claim the $20,000 exclusion, for a combined $40,000.9Department of Taxation and Finance. Personal Income Tax – Tax Expenditure Estimates Distributions from 401(k)s, IRAs, and similar accounts qualify for the exclusion to the extent they represent pension or annuity income included in federal adjusted gross income.
Credits That Reduce Your Bill
New York Earned Income Credit
New York’s earned income credit equals 30% of the federal EITC you qualify for, and it’s refundable, meaning it can produce a payment even if you owe no state tax.10Department of Taxation and Finance. Earned Income Credit (New York State) A $3,000 federal EITC would translate to a $900 New York credit, reduced by any household credit already claimed. It’s calculated on your state return based on your federal EITC amount, with no separate application.
Empire State Child Credit
Families with qualifying children can claim the Empire State Child Credit. For tax year 2026, the credit is up to $1,000 per qualifying child under age four and $500 per qualifying child ages four through sixteen.11Department of Taxation and Finance. Empire State Child Credit The credit phases out by $16.50 for every $1,000 your federal adjusted gross income exceeds:
- Married filing jointly: $110,000
- Single, head of household, or surviving spouse: $75,000
- Married filing separately: $55,000
The Empire State Child Credit is refundable for taxpayers who qualify.
Forms, Filing, and Deadlines
Full-year residents file Form IT-201. Nonresidents and part-year residents file Form IT-203.3Department of Taxation and Finance. Do I Need to File Income Tax Before you start, gather your federal adjusted gross income, Social Security numbers for everyone on the return, and your wage and income statements.
You can file online through the Department of Taxation and Finance’s Online Services portal, which confirms receipt immediately and generally processes refunds faster than paper. Paper returns go to the address in the form instructions. A refund tracker is available online after you file.12Department of Taxation and Finance. Online Services Home
The filing deadline is April 15, matching the federal date. Need more time? File Form IT-370 for an automatic six-month extension to October 15.13NY.Gov. Apply for an Extension of Time to File an Income Tax Return An extension gives you more time to file but not more time to pay. Any tax owed is still due April 15, and interest and penalties accrue on unpaid balances after that.
If you have income without New York withholding (freelance work, investment income, rental income), you may need to make quarterly estimated payments on Form IT-2105.14Department of Taxation and Finance. Income Tax Estimated Forms For tax year 2026, quarterly due dates fall on April 15, June 15, and September 15 of 2026, and January 15, 2027. Self-employed taxpayers subject to the MCTMT are also generally required to make estimated payments.15Department of Taxation and Finance. Estimated Taxes
What Happens If You File or Pay Late
Missing the deadline, or filing an extension without paying, triggers penalties and interest that stack.16Department of Taxation and Finance. Interest and Penalties
- Late filing penalty: 5% of the unpaid tax per month or partial month, up to 25%. If your return is more than 60 days late, the minimum penalty is the lesser of $100 or the total tax due.
- Late payment penalty: 0.5% of the unpaid tax per month or partial month, up to 25%.
- Interest: accrues on unpaid tax from the original due date at a rate set by the Commissioner of Taxation and Finance, defaulting to 7.5% per year if no rate is set.
You can owe the filing penalty and the payment penalty at the same time, with interest running on top. Filing on time even if you can’t pay in full avoids the steeper 5%-per-month filing penalty. New York also offers installment payment agreements for taxpayers who can’t pay a full balance at once.17New York State Senate. New York Tax Law 684 – Interest on Underpayment