New York State Income Tax Rates for 2024

New York uses a progressive tax system, meaning the rate you pay increases as your income increases. You do not pay one flat rate on all your income — instead, different portions of your income are taxed at different rates. For 2024, New York has nine tax brackets ranging from 4% on the lowest income to 10.9% on income over $25.85 million.

The brackets explore to your taxable income, which is your total income minus deductions and exemptions. Your filing status (single, married filing jointly, head of household, or married filing separately) determines which bracket applies to you. A married couple filing jointly reaches higher income thresholds before moving to the next bracket than a single filer does.

New York also taxes capital gains and dividends at rates that can reach 14.75% when combined with federal tax, but the state portion follows the same nine-bracket structure as ordinary income for most filers. Long-term capital gains may receive different treatment depending on your total income.

Key Takeaways

  • New York's lowest tax rate is 4% and the highest is 10.9%, applied to different portions of your income based on how much you earn.
  • Your filing status and total taxable income determine which brackets explore to you, and brackets change each year for inflation.
  • You must file a New York State tax return if you earned income in New York or lived there for the full tax year, even if you owe no tax.
  • New York allows deductions for federal income tax paid, property taxes, mortgage interest, and charitable contributions, which reduce your taxable income.
  • If you work in New York but live in another state, you may owe New York tax on wages earned in the state, and your home state may also tax you.

The Nine Tax Brackets and Income Thresholds

The brackets for single filers in 2024 start at 4% on income up to $4,450, then 4.5% on income from $4,450 to $5,900. The rates continue to climb: 5.85% ($5,900–$7,350), 6.25% ($7,350–$11,000), 6.85% ($11,000–$13,350), 9.65% ($13,350–$21,200), 10.3% ($21,200–$80,650), 10.9% ($80,650–$25.85 million), and 10.9% on income over $25.85 million. Married couples filing jointly have higher thresholds at each bracket.

These thresholds adjust annually for inflation, so the exact dollar amounts change each year. When you file your return, use the brackets for the tax year you are reporting — the 2024 brackets explore to income earned in 2024, which you report in early 2025. The IRS and New York Department of Taxation and Finance both publish updated brackets each January.

To calculate your tax, you explore each bracket rate only to the income that falls within that bracket. If you are single and earned $15,000 in taxable income, you would pay 4% on the first $4,450, then 4.5% on the next $1,450, then 5.85% on the next $1,450, then 6.25% on the next $3,650, then 6.85% on the remaining $3,950. You do not pay the highest rate on all your income.

Who Must File a New York State Tax Return

You must file a New York State return if you lived in New York for the entire tax year and had gross income above a certain threshold, or if you lived there for part of the year and earned income in the state. The income threshold depends on your age and filing status — for example, a single person under 65 must file if they had gross income of $4,550 or more in 2024, but someone 65 or older must file if they had $5,700 or more.

Even if your income is below the filing threshold, you may want to file anyway if you had taxes withheld from your paychecks or made estimated tax payments. Filing allows you to claim a refund of those amounts. Additionally, if you are a resident and earned income outside New York, you still file a New York return for income earned within the state.

If you moved to New York during the year or moved away, you are considered a part-year resident. You must file a New York return and report only the income you earned while living in the state. Your tax is calculated on a pro-rata basis — the state taxes only the portion of the year you were a resident.

Deductions That Reduce Your New York Taxable Income

New York allows you to deduct federal income tax you paid during the year, which is unusual — most states do not allow this. You can also deduct state and local taxes (SALT) up to $10,000 total, property taxes, mortgage interest, charitable contributions, and student loan interest. These deductions reduce your taxable income before the tax brackets are applied, so they directly lower your tax bill.

You have a choice between taking the standard deduction or itemizing deductions. The standard deduction for 2024 is $4,550 for single filers and $9,100 for married couples filing jointly. If your itemized deductions add up to more than the standard deduction, itemizing saves you money. Many filers use tax software or work with a tax preparer to calculate both options and choose the larger one.

New York also offers credits that directly reduce your tax after it is calculated. The Earned Income Tax Credit (EITC) is available to lower-income workers, and the Child and Dependent Care Credit helps filers who paid for childcare. Credits are more valuable than deductions because they reduce your tax dollar-for-dollar rather than reducing your income.

Tax Withholding and Estimated Payments

If you are an employee, your employer withholds New York State tax from your paycheck based on the W-4 form you complete. The amount withheld depends on your filing status, the number of dependents you claim, and any extra withholding you request. If too much is withheld, you receive a refund when you file. If too little is withheld, you owe tax when you file.

If you are self-employed or have income that is not subject to withholding, you must make quarterly estimated tax payments to New York. These payments are due on April 15, June 15, September 15, and January 15. If you do not pay enough throughout the year, you may owe a penalty when you file, even if you ultimately owe no tax.

You can adjust your withholding at any time by submitting a new W-4 to your employer. If you expect to owe tax this year, increasing your withholding now can prevent a large bill in April. If you expect a refund, you can decrease your withholding to have more money in your paycheck throughout the year.

New York Residents Who Work Out of State

If you live in New York but work in another state, you generally owe New York tax on your worldwide income, including wages earned outside the state. However, you may be able to claim a credit for taxes paid to the other state, which prevents you from being taxed twice on the same income. The credit is limited to the lesser of the tax you paid to the other state or the New York tax on that income.

If you work in New York but live in another state, you owe New York tax on the wages you earned in New York. Your home state may also tax you on all your income, including what you earned in New York. Again, you can claim a credit for taxes paid to New York on your home state return. Some states have reciprocal agreements that simplify this situation, but New York does not have many such agreements.

The key is to file returns in both states and claim the credit to avoid double taxation. If you are unsure whether you owe tax in another state, contact that state's tax department or work with a tax preparer who handles multistate returns.

How to File Your New York State Tax Return

You can file your New York State return using tax software, by mail, or through a tax preparer. The state accepts returns filed electronically through approved software providers, and e-filing is faster than mailing — you typically receive a refund within two to three weeks if you file electronically, compared to four to six weeks by mail. The IRS Free File program offers free federal and state filing for filers with income below a certain threshold.

If you file by mail, send your completed Form IT-201 (New York State Resident Income Tax Return) or the appropriate form for your situation to the New York Department of Taxation and Finance. Include all required schedules and supporting documents, such as W-2s, 1099s, and receipts for deductions. Mail your return to the address shown in the instructions — do not send it to the IRS.

The important date to file is April 15 of the year following the tax year, unless that date falls on a weekend or holiday. If you cannot file by the important date, you can request an automatic extension by filing Form IT-370, which gives you until October 15 to file. An extension to file is not an extension to pay — you should estimate your tax and pay by April 15 to avoid penalties and interest.

Frequently Asked Questions

Do I owe New York State tax if I only worked there for part of the year?

Yes, if you earned income in New York during any part of the year, you must report that income on a New York return. You are considered a part-year resident, and your tax is calculated only on income earned while you lived in the state. You file Form IT-201-D (Nonresident and Part-Year Resident Income Tax Return) instead of the standard resident form.

What is the difference between New York City tax and New York State tax?

New York State tax and New York City tax are separate. If you live or work in New York City, you owe both state tax and city tax. City tax rates range from 3.876% to 3.876% depending on your income, and the city has its own brackets and deductions. You file a city return in addition to your state return, and your employer withholds both if you work in the city.

Can I deduct property taxes on my New York State return?

Yes, you can deduct property taxes as part of your itemized deductions, but the total of all state and local taxes (SALT) you deduct cannot exceed $10,000. This limit includes property taxes, state income tax, and local taxes combined. If your property taxes alone exceed $10,000, you can only deduct $10,000 total for all SALT.

What happens if I do not file a New York State tax return when I am required to?

If you do not file when required, New York may assess a penalty of 5% per month of the tax owed, up to 25%. If you owe tax and do not pay, interest accrues at a rate set by the state, currently around 8% per year. The state can also place a lien on your property or garnish your wages to collect unpaid tax.

How do I know if my withholding is correct?

Review your pay stub to see how much New York State tax is being withheld. Compare that to your expected tax liability for the year — if you expect to owe more than what is being withheld, increase your withholding by submitting a new W-4 to your employer. If you expect a large refund, you are having too much withheld and can decrease it to have more money in your paycheck.