New York Income Tax Calculator
Calculate your approximate take-home pay in the Empire State. Automatically calculates federal income tax, New York State tax, and New York City local tax using progressive tax brackets.
How much is New York state income tax?
To calculate your take-home pay in New York, you must factor in both state and local liabilities. New York State utilizes a progressive tax system ranging from 4.0% to 10.9%. Furthermore, residents living within the five boroughs of New York City are subject to an additional local progressive tax that reaches up to 3.876%, significantly reducing their net pay compared to upstate residents.
- W-2 employees in New York
- NYC residents paying local tax
- Professionals comparing job offers
- Remote workers living in NY
1. Enter Your Salary Details
Sets your NY & Federal standard deductions.
2. Filing Location
NYC residents pay an additional local income tax up to 3.876%.
⚙️ 3. Advanced Deductions (Optional)
e.g., Traditional 401(k), Health Insurance. Reduces income taxes only. (FICA is calculated on full gross).
e.g., Roth 401(k), Union dues. Reduces take-home pay but does not save on taxes.
🔒 Your data is never stored or shared. Calculations run entirely in your browser.
Estimated Annual Net Pay
💡 Total Annual Taxes Paid: $0.00
Our New York income tax calculator utilizes projected 2026 state brackets, federal brackets, and specific local tax rates for the five boroughs of NYC. We designed this tool to help residents, commuters, and remote workers accurately estimate their net pay.
New York State imposes a progressive income tax with rates ranging from 4.0% to 10.9%. If you live within New York City, you must also pay a separate local income tax that ranges from roughly 3.078% up to 3.876%. Your exact tax burden depends heavily on your filing status, your total gross salary, and whether your primary residence is located inside the NYC limits.
Why You Need a New York Income Tax Calculator
New York is the financial capital of the world. Wall Street, massive tech hubs, and a booming media industry drive some of the highest base salaries on the East Coast. But as any local resident will quickly warn you, landing a six-figure job in Manhattan does not mean you get to keep a six-figure lifestyle.
The Empire State has one of the most aggressive tax codes in the country. Between federal deductions, state taxes, and hidden city levies, your paycheck is sliced apart before it ever hits your bank account. Running your numbers through a precise New York income tax calculator is absolutely vital before signing a lease or accepting a new job offer.
The Anatomy of a New York Paycheck
When you look at your pay stub, you will notice multiple different government agencies taking a cut. First, the Internal Revenue Service (IRS) takes your federal income tax and FICA (Social Security and Medicare). Then, the state steps in for its share. Finally, depending on your zip code, the city itself might take a final bite. Understanding this stacking effect is the only way to budget effectively.
Understanding the 2026 New York State Tax Brackets
New York does not use a simple flat tax rate. Instead, the NYS Department of Taxation and Finance uses a progressive system designed to tax high earners at significantly higher rates than entry-level workers.
From 4% to the 10.9% Top Bracket
The state system is broken down into multiple tiers. For a single filer, your first few thousand dollars of taxable income are taxed at the lowest rate of 4.0%. As your salary increases, the cash that spills into higher brackets is taxed at steeper rates, moving through 5.5%, 6.25%, and 6.85%.
If you are an ultra-high earner, the numbers get steep. New York applies a millionaire’s tax that pushes the top marginal bracket all the way up to 10.9% for individuals earning over $25 million annually. While most people will never hit that top tier, middle-class professionals routinely find themselves pushed into the painful 6.25% bracket.
How Filing Status Alters Your Math
Your filing status changes everything. Married couples filing jointly receive much wider tax brackets than single individuals. This means a married couple earning $150,000 will pay significantly less in state taxes than a single person earning that exact same amount, because the married couple’s income doesn’t spill into the higher tax tiers as quickly.
The NYC Local Tax in Our New York Income Tax Calculator
This is where most out-of-state transplants make a massive budgeting error. If you live within the five boroughs (Manhattan, Brooklyn, Queens, The Bronx, or Staten Island), you do not just pay state taxes. You also pay a specialized local income tax.
How the NYC Resident Tax Works
The city enforces its own mini progressive tax system managed by the NYC Department of Finance. Depending on your income, this local tax ranges from roughly 3.078% up to a maximum of 3.876%. When you use our New York income tax calculator, selecting “Yes” on the NYC resident toggle automatically stacks this local penalty on top of your state and federal taxes.
The Cost of Living in the City
If you earn $100,000 and live in upstate New York (like Albany or Buffalo), you completely avoid the city tax. But if you move to Brooklyn with that exact same $100,000 salary, your net pay drops by nearly $3,500 a year purely because of the NYC resident tax. This is why many professionals choose to commute from New Jersey, Connecticut, or Westchester County.
Do Commuters Pay the NYC Tax?
Generally, no. The NYC local tax is based on residency, not where your office is located. If you live in New Jersey but take the train into Manhattan for work every day, you do not pay the NYC local income tax. However, you will still owe New York State income taxes on the money you earned while physically working inside the state.
Using Pre-Tax Deductions to Save Your Wealth
Because the combined federal, state, and city tax rates can easily consume over 35% of a New York professional’s paycheck, smart workers use tax loopholes to protect their money. The best defense is lowering your “taxable income” before the state calculates what you owe.
Shielding Income with a 401(k)
When you push money into a traditional 401(k), the IRS and New York State pretend you never earned those dollars. If your salary is $120,000 and you contribute $20,000 to your 401(k), you are only taxed as if you made $100,000. You can test this in the Advanced Settings of our New York income tax calculator to see how much your monthly take-home pay actually drops—it is usually much less than you expect because your tax bill shrinks.
Health Insurance and Transit Commuter Benefits
Other common pre-tax deductions include employer-sponsored health insurance premiums and FSA/HSA contributions. Additionally, many New York employers offer pre-tax commuter benefits, allowing you to pay for your subway MetroCard or train pass with tax-free dollars. Every dollar you route through these programs avoids your top marginal tax bracket.
*Note: Ordinary income brackets used in this tool are projected estimates based on current inflation adjustments.
| Tax Type | Who Pays It? | Estimated Max Rate |
|---|---|---|
| New York State Tax | All NY Residents & In-State Workers | Up to 10.9% |
| New York City Tax | Residents of the 5 Boroughs Only | Up to 3.876% |
| Yonkers Local Tax | Residents/Workers in Yonkers (Not in calc) | ~16.75% of NYS Tax |
Remote Work and the “Convenience of the Employer” Rule
Since the rise of remote work, thousands of New Yorkers have fled the state seeking lower costs of living. But many of them receive a brutal shock at tax time. Moving away does not automatically stop your New York tax obligations.
The Infamous Telecommuter Tax Trap
New York enforces a highly aggressive law known as the “Convenience of the Employer” rule. If you work for a New York-based company, but you choose to live and work remotely in a tax-free state like Florida or Texas, New York still claims the right to tax your income. They argue that you are working remotely for your own convenience, not because the employer strictly requires you to be out of state.
⚠️ The Double Tax Danger
If you live in a state that also charges an income tax (like New Jersey) but you fall under the Convenience rule for a New York employer, things get complicated. Usually, your home state will offer a credit for taxes paid to New York, but you must file in both states carefully to avoid being double-taxed on the exact same salary.
Wall Street Bonuses and Supplemental Wages
If you work in finance, law, or tech, a huge chunk of your annual compensation might come from a year-end bonus or vesting Restricted Stock Units (RSUs). New York taxes this money heavily, but the way it looks on your pay stub can be incredibly confusing.
The Supplemental Withholding Trap
When you receive a massive bonus, your employer does not run it through the standard progressive tax brackets. Instead, the IRS requires them to withhold a flat 22% for federal taxes. New York State also applies a flat withholding rate to bonuses (typically around 11.7% for the state, plus local city rates if applicable).
Because our New York income tax calculator spreads your annual salary out evenly across standard brackets, a sudden lump-sum bonus will look different on your actual pay stub. If your massive bonus pushes your total annual income into a higher bracket, you may find that the flat withholding wasn’t enough, resulting in a large tax bill when you file your return in April.