New York Paycheck Calculator 2026

New York State income tax in 2026

New York uses nine progressive brackets ranging from 4% on the first ~$8,500 (single) up to 10.9% on income above approximately $25 million. The state conforms substantially to the federal Internal Revenue Code but maintains its own standard deduction (~$8,000 single / ~$16,050 joint for 2026), its own dependent exemption, and its own itemized deduction worksheet — notably, New York did NOT adopt the federal $10,000 SALT cap, so full state and local taxes remain deductible against New York taxable income for itemizers.

Capital gains have no preferential treatment in New York: all gains are taxed at the full bracket rate. Long-term gains in NYC for top earners therefore face roughly 14.776% state + city tax stacked on top of federal 23.8%, for a combined ~38.6% marginal rate.

New York City and Yonkers income tax

NYC residents pay city income tax on top of state tax, ranging from 3.078% on income up to ~$12,000 (single) to 3.876% above ~$50,000. Yonkers residents pay 16.75% of their state liability (effectively a ~1.5%–2% surcharge) plus a non-resident earnings tax of 0.5% on Yonkers-sourced wages. Non-NYC residents who work in the city are not subject to NYC income tax — there is no commuter tax for individuals (the NYC commuter tax was repealed in 1999).

Our calculator's default is non-NYC residency. To estimate NYC income tax, add roughly 3.5%–3.876% of your NY taxable income to the state tax result; the exact figure depends on bracket placement.

New York property tax

New York's effective property tax rate averages 1.40% statewide but varies enormously by location. Westchester, Nassau, and Rockland counties regularly exceed 2.0% — among the highest in the country in absolute dollar terms — while NYC's effective property tax on Class 1 (1–3 family residential) properties is closer to 0.9% due to assessment limits and aggressive assessment caps under the NYC tax classification system.

STAR (School Tax Relief) provides a partial school-tax exemption for primary residences under an income cap (~$500,000 for Basic STAR). New STAR enrollees receive a check rather than a direct assessment reduction. Senior STAR provides additional relief for filers age 65+ under a tighter income limit.

New York-specific credits and deductions

• Empire State Child Credit — refundable, up to $330 per qualifying child or 33% of the federal Child Tax Credit, whichever is greater.
• NY Earned Income Credit — 30% of the federal EITC, refundable.
• College Tuition Credit — up to $400 per student for undergraduate tuition.
• Long-term Care Insurance Credit — 20% of premiums paid, capped.
• 529 (NY's 529 Direct Plan) — state deduction up to $5,000 single / $10,000 joint per year for contributions.
• Real Property Tax Credit — for lower-income households, refundable up to $375.

Common New York tax planning strategies

New York's progressive structure and lack of capital gains preference make planning particularly valuable for high earners and pre-IPO employees:

• Pass-Through Entity Tax (PTET) — New York's PTET election lets a partnership or S-corp pay state tax at the entity level and deduct it federally, restoring a SALT deduction up to the PTET payment. Election deadline is March 15.
• Max 401(k), HSA, and 457(b) where eligible. Contributions reduce both federal and New York taxable income.
• Time capital gains carefully — selling appreciated assets after relocating to a no-income-tax state requires established residency before the sale closes, and New York's audit unit aggressively challenges residency changes around liquidity events.
• Take the NY 529 deduction even if you contribute later in the year; the deduction is per contribution year, not per beneficiary year.
• If you live outside NYC but work in the city, you owe no NYC income tax — confirm your employer is not withholding it.

New York residency audits

The New York Department of Taxation and Finance runs one of the most aggressive residency audit programs in the country. The 'statutory residency' test treats anyone maintaining a permanent place of abode in New York and spending more than 183 days in-state as a New York resident for tax purposes, regardless of domicile. Day counts are tracked to the half-hour, and a single calendar day with any New York presence counts as a full day. Establishing a non-New York domicile requires a thorough paper trail: a primary residence elsewhere, voter registration, driver's license, vehicle registration, professional and social affiliations, and a clearly reduced New York footprint.