NYC Income Tax: How the City, State & Federal Layers Stack
New York City residents pay a city income tax on top of state and federal tax. See the NYC rates, who pays them, and how the three taxes add up.
Searches for "NYC tax brackets" often land on pages that only show New York State rates. But city residents pay an extra tax that state tables don't show. New York City is one of the few places in the US with its own income tax on top of state and federal tax.
For a NYC resident, that means three separate income taxes on the same paycheck: federal, state, and city. Think of them as three layers, and this guide walks through each one.
Who pays the NYC income tax
The city tax applies to people who live in the five boroughs (Manhattan, Brooklyn, Queens, the Bronx, and Staten Island). It's collected by New York State and filed with the state return on Form IT-201. Most people never file anything separate for the city.
Two common situations worth knowing:
- Commuters who work in the city but live outside it generally do not pay the city resident tax; that ended in 1999. Residency has extra rules (including one that counts the days you spend in the city), so unusual cases are best checked with the NY Department of Taxation and Finance or a tax professional.
- Yonkers is separate: it has its own resident tax, not the NYC one.
Layer one: the city rates
The city tax has four brackets. The thresholds are low compared to federal brackets. For a single filer, the top city rate currently starts above $50,000 of city taxable income, so many full-time workers in the city pay the top city rate on part of their income.
| City rate | Single & married filing separately | Married filing jointly | Head of household |
|---|---|---|---|
| 3.078% | Up to $12,000 | Up to $21,600 | Up to $14,400 |
| 3.762% | $12,000 – $25,000 | $21,600 – $45,000 | $14,400 – $30,000 |
| 3.819% | $25,000 – $50,000 | $45,000 – $90,000 | $30,000 – $60,000 |
| 3.876% | Over $50,000 | Over $90,000 | Over $60,000 |
These rates have not changed in recent years, but they can change with new laws. The IT-201 instructions for the current year are the official source.
Layer two: New York State brackets
On top of the city tax, residents pay New York State income tax, which has its own brackets:
| Taxable income | Marginal rate |
|---|---|
| Up to $8,500 | 3.9% |
| $8,500 – $11,700 | 4.4% |
| $11,700 – $13,900 | 5.15% |
| $13,900 – $80,650 | 5.4% |
| $80,650 – $215,400 | 5.9% |
| $215,400 – $1,077,550 | 6.85% |
| $1,077,550 – $5,000,000 | 9.65% |
| $5,000,000 – $25,000,000 | 10.3% |
| Over $25,000,000 | 10.9% |
The top state rates only apply at very high incomes. Putting the state and city tables together, a NYC resident's combined state-plus-city marginal rate currently runs from roughly 7% at the low end to roughly 14.8% at the very top, before federal tax.
Layer three: federal brackets
Federal brackets work the same in the city as everywhere else in the country:
| Taxable income | Marginal rate |
|---|---|
| Up to $12,400 | 10% |
| $12,400 – $50,400 | 12% |
| $50,400 – $105,700 | 22% |
| $105,700 – $201,775 | 24% |
| $201,775 – $256,225 | 32% |
| $256,225 – $640,600 | 35% |
| Over $640,600 | 37% |
To see the federal and New York State taxes applied to a real income, with your marginal and effective rates worked out, try the New York calculator page. (The calculator covers the federal and state taxes; the city rates above come on top for city residents.)
Reading the three layers together
A few things that are true at any income level:
- Each layer taxes its own version of taxable income, after that layer's deductions. So you can't just add the three rates and multiply by your salary.
- All three layers use brackets, so each rate only applies to the part of income inside it. Our guide on how tax brackets work explains the basics.
- The city tax is the smallest of the three for most incomes, but it's the one most often missed in take-home estimates, because national calculators usually leave it out.
Sources
Frequently asked questions
What are the NYC income tax brackets?
New York City has four resident tax rates: 3.078%, 3.762%, 3.819%, and 3.876%. The thresholds depend on your filing status. For single filers, the top 3.876% rate currently starts above $50,000 of NYC taxable income; for married couples filing jointly, above $90,000.
Do non-residents pay NYC income tax?
Generally no. The city tax applies to people who live in NYC. If you work in the city but live outside it, you generally don't pay the city resident tax (the old commuter tax ended in 1999). Residency has extra rules for unusual cases, and the NY Department of Taxation and Finance is the place to check them.
Is the NYC tax paid on top of New York State tax?
Yes. A city resident's pay is generally taxed three times: federal income tax, New York State income tax, and the NYC resident tax. The city tax is filed together with the state return (Form IT-201), so there is no separate city filing for most people.
How high can the combined rate get for a NYC resident?
Adding the top state rate (10.9%, which only applies at very high incomes) to the top city rate (3.876%) gives a combined state-plus-city top rate of roughly 14.8%, before federal tax. At typical incomes the combined rate is much lower.
Does NYC tax apply elsewhere in New York State?
No. People in the rest of the state pay federal and New York State tax but not the NYC resident tax. Yonkers is the one exception; it has its own separate resident tax.