In a Nutshell
Your New York state income tax rate depends on your filing status and taxable income. But state income taxes aren’t the only state-level taxes you may face as a resident of the Empire State.This article was fact-checked by our editors and CPA Janet Murphy, senior product specialist with Credit Karma.
The New York state income tax rate is based on a progressive tax schedule, which means higher-income earners pay higher rates.
What’s more, New York City, along with Yonkers, residents may end up paying more personal income tax than taxpayers who live in other cities in the state. The New York state income tax rate isn’t the only one to be concerned about, though.
Here are some things to know about the taxes you may be subject to if you live or work in the state of New York.
- The basics of New York state taxes
- New York state sales taxes
- New York state property taxes
- New York state estate taxes
- Other taxes in New York state
The basics of New York state taxes
The New York State Department of Taxation and Finance administers the various types of tax that you may be subject to in the Empire State. That includes income tax, sales tax, property tax, estate taxes and other taxes.
Whether you live or work in New York, or are a visitor, it’s important to know what types of taxes you may be on the hook for, and how much you can expect to pay. Here’s a summary of what you can expect from each type of tax — note that tax rates can change from year to year, so check the Department of Taxation and Finance website for the most up-to-date information.
Like the federal tax system, the Empire State has a progressive schedule for income taxes, which means that lower-income taxpayers typically pay a lower marginal rate than those with higher incomes. Your tax rate is determined not only by your adjusted gross income, or AGI, but also by your filing status.
While tax rates may be updated each year, here are the marginal rates and tax brackets for the 2019 tax year.
| New York state income tax rates | |||
| Tax rate | Single or married filing separately | Head of household | Married filing jointly or qualified widow(er) |
| 4% | $0–$8,500 | $0–$12,800 | $0–$17,150 |
| 4.5% | $8,501–$11,700 | $12,801–$17,650 | $17,151–$23,600 |
| 5.25% | $11,701–$13,900 | $17,651–$20,900 | $23,601–$27,900 |
| 5.9% | $13,901–$21,400 | $20,901–$32,200 | $27,901–$43,000 |
| 6.33% | $21,401–$80,650 | $32,201–$107,650 | $43,001–$161,550 |
| 6.57% | $80,651–215,400 | $107,651–$269,300 | $161,551–$323,200 |
| 6.85% | $215,401–$1,077,550 | $269,301–$1,606,450 | $323,201–$2,155,350 |
| 8.82% | $1,077,551 and more | $1,616,451 and more | $2,155,351 and more |
| New York City income tax rates | |||
| Tax rate | Single or married filing separately | Head of household | Married filing jointly or qualified widow(er) |
| 3.078% | $0–$12,000 | $0–$14,400 | $0–$21,600 |
| 3.762% | $12,001–$25,000 | $14,401–$30,000 | $21,601–$45,000 |
| 3.819% | $25,001–$50,000 | $30,001–$60,000 | $45,001–$90,000 |
| 3.876% | $50,001 and more | $60,001 and more | $90,001 and more |
Also, the city of Yonkers has a resident income tax surcharge of 16.75%, which is withheld from your paycheck if you’re a W-2 employee.
New York state sales taxes
Whether you’re a New York resident or a visitor, you’ll pay a sales-and-use tax on goods purchased in the state. The state charges a flat 4% rate, but your actual rate can vary based on any local sales tax imposed by the city, county or school district in which the sale occurs. For example, the sales tax rate for New York City is 8.875%, while it’s 7.5% in Ontario County.
Also, there’s an additional sales tax of 0.375% on sales made within the Metropolitan Commuter Transportation District.
Check the state’s website for a list of sales-and-use tax rates by jurisdiction. Or you can use the state’s online tool to look up the rate by address.
Can I deduct sales taxes?
If you itemize deductions on your federal income tax return, you may be able to deduct sales taxes as part of the SALT (state and local taxes) deduction. You can deduct state and local property taxes and either state sales taxes or state income taxes. The total deduction is capped at $10,000 ($5,000 if you’re married filing separately).
New York state property taxes
In the Empire State, property taxes are assessed by school district, municipality, county or special district. New York does not have a state-level property tax.
In general, though, New York property taxes are 96% higher than the national median. You can use a map provided by the state to check the three-year average for property taxes in your county, or check with your local assessor to get the current rate.
To help reduce the impact of property taxes on your finances, several property tax exemptions are available in areas throughout the state. But you should check with your local tax assessor to find out which ones are available where you live.
Also, you may be able to qualify for a property tax relief credit on your New York state return. The tax credit can kick in if you …
- Live in a school district that’s in compliance with the state’s property tax cap (check the school district list to find yours)
- You’re receiving either the Basic or Enhanced STAR exemption or credit
- Have an income of $275,000 or less
- Have paid school property taxes for the tax year
If you’re receiving the Basic STAR exemption or credit, the amount of the property tax relief credit can range from 10.5% to 85% of your STAR savings, depending on your income level. If you’re receiving the Enhanced STAR exemption or credit, the credit is 34% of your Enhanced STAR savings, regardless of your income level.
The maximum credit you can qualify for is equal to the total school district taxes for your property. For 2019, this credit is an advance payment that will be mailed to taxpayers in the fall.
Also, note that New York City residents don’t qualify for this credit. But there is a separate New York City enhanced real property tax relief credit of as much as $500 that you may be able to get if you meet income limits and other requirements.
New York state estate taxes
The state of New York levies an estate tax on the estates of deceased taxpayers.
For the 2019 tax year, the state has a basic exclusion amount of $5.74 million. If you’re a resident of New York and your estate and includable gifts are worth less than this amount, the state won’t assess any estate taxes. Above that amount, though, the marginal tax rate is based on the amount above the exclusion threshold. Here are the 2018 rates.
| Tax rate | Taxable estate value |
|---|---|
| 3.06% | $0–$500,000 |
| 5% | $500,001–$1,000,000 |
| 5.5% | $1,000,001–$1,500,000 |
| 6.5% | $1,500,001–$2,100,000 |
| 8% | $2,100,001–$2,600,000 |
| 8.8% | $2,600,001–$3,100,000 |
| 9.6% | $3,100,001–$3,600,000 |
| 10.4% | $3,600,001–$4,100,000 |
| 11.2% | $4,100,001–$5,100,000 |
| 12% | $5,100,001–$6,100,000 |
| 12.8% | $6,100,001–$7,100,000 |
| 13.6% | $7,100,001–$8,100,000 |
| 14.4% | $8,100,001–$9,100,000 |
| 15.2% | $9,100,001–$10,100,000 |
| 16% | $10,100,001 and more |
Other taxes in New York state
The Empire State also has several other taxes that you may run into. Here are some of the main ones.
- Alcoholic beverages tax — Varies by type of alcohol. For example, beer and wine are taxed at 14 cents and 30 cents per gallon, respectively. New York City also has a separate tax on wine and certain spirits containing more than 24% alcohol by volume. The distributor pays the tax.
- Cigarette and tobacco tax — The state assesses an excise tax of $4.35 per package of 20 cigarettes, and New York City levies an additional tax of $1.50 per 20-cigarette package. The distributor pays the tax.
- Motor fuel tax — The tax rate is 17.7 cents per gallon for motor fuel, but the rate can vary with other types of fuel. The tax is paid by the distributor.
- New York City taxicab ride tax — There’s a 50-cent tax on each taxi trip that starts and ends in New York City or starts in New York City and ends in Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk or Westchester county. The tax is paid by the medallion owner, agent or hail base.
While most residents likely won’t pay any of these taxes directly, the distributors and others paying the taxes may pass it on to you via an increase in the price of the product or service you’re buying.
Bottom line
If you live in, work in or visit the state of New York, it’s important to understand what taxes you’re paying. It’s especially important if you live in New York City, which imposes several taxes on top of the state’s list.
As you learn about the different taxes the state or your local government may assess, you’ll have a better idea of how to budget for taxes and what credits or deductions might help you reduce your total tax bill each year.If you itemize deductions on your federal income tax return, you may be able to deduct sales taxes as part of the SALT (state and local taxes) deduction. You can deduct state and local property taxes and either state sales taxes or state income taxes. The total deduction is capped at $10,000 ($5,000 if you’re married filing separately).
Relevant sources: New York State Government: Instructions for Form IT-201 | New York State Department of Taxation and Finance: About Us | New York State Government: New York State Sales and Use Tax Rates by Jurisdiction | New York State Department of Taxation and Finance: Property Tax Relief Credit | New York State Department of Taxation and Finance: Estate Tax | New York State Department of Taxation and Finance: Property Tax Exemptions
A senior product specialist with Credit Karma, Janet Murphy is a CPA with more than a decade in the tax industry. She’s worked as a tax analyst, tax product development manager and tax accountant. She has accounting degrees and certifications from Clemson University and the U.S. Career Institute. You can find her on LinkedIn.