New York's tax brackets and rates for 2024

New York State uses a progressive tax system, meaning your tax rate increases as your income rises. You pay different rates on different portions of your income, not one flat rate on everything. For 2024, New York has nine tax brackets ranging from 4% on the lowest income to 10.9% on income above $663,200 (for single filers).

The brackets adjust each year for inflation. Your filing status — single, married filing jointly, head of household, or married filing separately — determines which bracket applies to your income amount. A married couple filing jointly reaches the top bracket at a higher income level than a single filer, which is why your status matters.

New York also taxes capital gains, dividends, and other investment income at the same rates as wages and salary, with no separate preferential rate. This is different from federal tax, where long-term capital gains have their own lower brackets.

Key Takeaways

  • New York's top tax rate is 10.9%, but you only pay that rate on income above $663,200 (single filers in 2024); lower portions of your income are taxed at lower rates.
  • The nine tax brackets change each year, so the income thresholds that determine your rate are different in 2024 than they were in 2023.
  • Your filing status (single, married filing jointly, head of household) changes which bracket your income falls into.
  • Investment income, capital gains, and dividends are taxed at the same rates as wages, with no special lower rate for long-term gains.
  • New York City residents pay an additional city income tax on top of state tax, which ranges from 3.876% to 4.5% depending on income.

How to find your tax bracket

To find your bracket, add up your total income for the year — wages, self-employment income, investment gains, and any other taxable income. Then locate that total in the bracket table that matches your filing status. The rate shown is the marginal rate, meaning the rate you pay on that portion of income only.

For example, if you are a single filer with $100,000 in income, you do not pay 6.85% on all $100,000. You pay 4% on the first portion, then 4.5% on the next portion, and so on, until you reach the bracket your $100,000 falls into. Only the income within that final bracket is taxed at the marginal rate.

The New York Department of Taxation and Finance publishes the full bracket tables each January on its website. You can also find them in the instructions to Form IT-201 (New York State Resident Income Tax Return), which is the main state income tax form.

New York City income tax on top of state tax

If you live or work in New York City, you owe city income tax in addition to state tax. The city has its own brackets and rates, ranging from 3.876% to 4.5% for most filers. This is a separate tax calculated on the same income, so your total New York tax burden is state plus city.

The city tax applies to residents and to nonresidents who work in the city. If you work in the city but live elsewhere in New York State, you pay city tax on your wages but not on other income like capital gains or rental income. The rules are complex, and the city Department of Finance publishes detailed guidance on its website.

Some other New York cities and counties also impose local income tax, though most do not. If you live outside New York City, check your local tax assessor's office or your municipality's website to see whether a local income tax applies to you.

Deductions and credits that lower your tax

New York allows you to subtract certain amounts from your income before calculating tax. The standard deduction is the most common one — for 2024, it is $6,950 for single filers and $13,900 for married couples filing jointly. If you do not itemize deductions, you subtract the standard deduction from your income, and tax is calculated on what remains.

If you itemize instead, you list out deductions like mortgage interest, property taxes, and charitable donations. New York allows most federal itemized deductions, but it does not allow the federal cap on state and local tax deductions (SALT). This means you can deduct your full New York State and local income tax and property tax, even if the total exceeds $10,000.

New York also offers tax credits that directly reduce the tax you owe, such as the Earned Income Tax Credit (EITC) for lower-income workers and the Child and Dependent Care Credit. Credits are more valuable than deductions because they reduce your tax dollar-for-dollar rather than reducing your taxable income.

Self-employment income and estimated tax

If you are self-employed, you owe New York State income tax on your net business income. You calculate this on Schedule C (federal) and then report it on your New York return. You also owe self-employment tax to cover Social Security and Medicare, which is a federal obligation but affects your total tax burden.

Self-employed people and others with income not subject to withholding must usually pay estimated tax four times a year to avoid penalties. New York requires estimated payments if you expect to owe $300 or more in tax. You can make payments online through the Department of Taxation and Finance website or by mail.

If you underpay estimated tax, New York charges interest and penalties on the shortfall. The penalty rate changes quarterly and is based on the federal short-term interest rate plus 4%. Paying on time, even if you do not owe the full amount, is cheaper than paying late.

How withholding affects what you owe

If you are an employee, your employer withholds New York State income tax from your paycheck based on the W-4 form you complete. The withholding is meant to cover your tax liability throughout the year so you do not owe a large amount at filing time.

If too much is withheld, you receive a refund when you file. If too little is withheld, you owe tax. You can adjust your withholding by submitting a new W-4 to your employer at any time. The New York Department of Taxation and Finance offers a withholding calculator on its website to help you figure out whether your current withholding is correct.

Withholding is separate from your actual tax rate. Your rate is determined by your income and filing status. Withholding is just the mechanism by which tax is collected from your paycheck. Getting withholding right means you break even at tax time rather than owing or overpaying.

Frequently Asked Questions

Does New York tax Social Security benefits?

No. New York does not tax Social Security benefits, even if your federal return includes them as taxable income. You exclude the taxable portion of Social Security from your New York income when you file Form IT-201.

What if I moved to New York partway through the year?

You are a resident for the part of the year you lived in New York and a nonresident for the part you lived elsewhere. You report only the income earned while you were a resident on your New York return. You may also owe tax to the state you moved from, so file a part-year resident return in both states.

Do I have to file a New York return if I work remotely for an out-of-state company?

Yes, if you are a New York resident. You owe tax on all income earned while you live in New York, regardless of where your employer is located. If you work remotely for a company outside New York, you still report that income on your New York return.

Can I deduct federal income tax from my New York taxable income?

No. New York does not allow a deduction for federal income tax paid. You can deduct state and local income tax on your federal return (up to $10,000), but not the other way around.

What happens if I do not file a New York return when I owe tax?

The Department of Taxation and Finance can assess tax, interest, and penalties. Interest accrues from the original due date, and penalties range from 5% to 25% of the unpaid tax depending on the reason for non-filing. Filing late is better than not filing at all.