New York State income tax rates and brackets for 2026

For 2026, New York State has nine income tax rates: 3.9%, 4.4%, 5.15%, 5.4%, 5.9%, 6.85%, 9.65%, 10.3% and 10.9%. Each applies only to the part of your taxable income inside its bracket, and the brackets depend on your filing status. For 2025 the five lowest rates were 0.1 percentage point higher, at 4%, 4.5%, 5.25%, 5.5% and 6%; the bracket amounts, the 6.85% rate and the three top rates are the same in both years.

The cut comes from a 2025 budget law (Chapter 59 of the Laws of 2025). It lowers the same five rates again for 2027, to 3.8%, 4.3%, 5.05%, 5.3% and 5.8%, and keeps the temporary 9.65%, 10.3% and 10.9% rates for high incomes through 2032. The bracket amounts written into the law for 2027 are the same as for 2025 and 2026.

As an example, a single filer with $100,000 of New York adjusted gross income who takes the $8,000 standard deduction has $92,000 of taxable income. The 2026 tax is $4,191 on the first $80,650 plus 5.9% of the remaining $11,350, about $4,861 before credits, or 5.3% of taxable income; for 2025 it was about $4,952. Above $107,650 of New York AGI, a worksheet starts taking back the benefit of the lower rates, and above $25 million all taxable income is taxed at 10.9%.

A New York return starts from your federal adjusted gross income (AGI). You add some items and subtract others, such as Social Security and government pensions, to reach New York AGI. From that you subtract the New York standard deduction, or your New York itemized deductions on Form IT-196 if they are larger, and $1,000 for each dependent. There is no exemption for yourself or your spouse, and the standard deduction amounts below are the same for 2025 and 2026.

The July 2025 tax law (Public Law 119-21) created federal deductions, for 2025 through 2028, for qualified tips, qualified overtime pay, interest on certain car loans for personal vehicles assembled in the United States, and an extra $6,000 for each person 65 or older. All four come off the federal return on line 13b of the 2025 Form 1040, after AGI, so none of them lowers New York AGI by itself. On a 2025 New York return, tips and overtime pay are taxed in full.

New York has since added a break for tips only. A 2026 budget law (Chapter 59 of the Laws of 2026), signed May 28, 2026, lets you subtract the federal deduction for qualified tips, up to $25,000, for tax years beginning on or after January 1, 2026, so the federal limits, including the phase-out above $150,000 of modified AGI ($300,000 on a joint return), carry over. New York made no change for overtime pay, car loan interest or the senior deduction, so overtime stays taxable on a 2026 New York return.

New York City taxes its residents’ income at four rates, 3.078%, 3.762%, 3.819% and 3.876%, the same for 2025 and 2026. A city resident pays it on all income, wherever it is earned. People who do not live in the city do not owe it at all, so someone who lives in New Jersey, Connecticut or on Long Island and works in Manhattan pays no New York City income tax.

There is no separate city return. Residents figure the city tax on their state return, Form IT-201, starting from New York City taxable income, which for most people equals their state taxable income. If you moved into or out of the city during the year, Form IT-360.1 figures the tax for your months as a resident. For example, a single city resident with $92,000 of taxable income owes $1,813 plus 3.876% of the amount over $50,000, about $3,441 for 2026 before credits, on top of the state tax.

The city credits below, from the 2025 instructions, are also claimed on the state return. Self-employed people who do business in the city may also owe the city’s unincorporated business tax, which New York State does not administer: it is filed with the New York City Department of Finance, not with the state return.

Yonkers has its own income tax, also collected on the New York State return. A Yonkers resident pays a surcharge of 16.75% of the New York State tax left after certain credits, the rate for both 2025 and 2026. A nonresident who earns wages or runs a business in Yonkers owes the nonresident earnings tax instead: for 2025, 0.5% of those wages and net earnings from self-employment, after an exclusion, figured on Form Y-203 and filed with the state return. Part-year residents use Form IT-360.1.

The Metropolitan Commuter Transportation Mobility Tax (MCTMT) applies to self-employed people, including partners and members of LLCs taxed as partnerships, with net earnings from self-employment in the Metropolitan Commuter Transportation District. It is reported on the income tax return and must be included in estimated tax payments, and no tax credit can reduce it.

New York does not tax Social Security: benefits included in your federal AGI are subtracted on the New York return. Pensions from New York State, New York local governments and the federal government, including military retirement pay, are subtracted in full too, at any age.

Other retirement income gets a smaller break. If you were 59½ or older for the whole year, you can subtract up to $20,000 of qualifying pension and annuity income, which includes IRA and 401(k) distributions; in the year you turn 59½, only what you receive after that date counts. Each spouse can subtract up to $20,000 of their own income but cannot use the other’s unused amount, and anything above $20,000 is taxed at the regular rates.

After you move away, New York stops taxing most of this income. Federal law bars states from taxing nonresidents on income from qualified retirement plans, so pension and IRA income you receive as a nonresident is left out of the New York amount on Form IT-203. Payments received while you were a resident are still taxed for that part of the year.

The Empire State child credit, the earned income credits and the college tuition credit are refundable for full-year residents: any amount above your tax is paid to you. New York stopped basing the Empire State child credit on the federal child tax credit for 2025, set it at $1,000 for each child under 4 and $330 for each child aged 4 to 16, and raises the second amount to $500 for 2026 and 2027. Only full-year residents can claim it, with a valid Social Security number or ITIN for yourself and each child.

The child credit shrinks by $16.50 for every $1,000 of federal AGI above $110,000 on a joint return, $75,000 for single, head of household and qualifying surviving spouse filers, or $55,000 if married filing separately. The New York earned income credit is 30% of your federal earned income credit, minus your New York household credit, and city residents add the New York City credit; both require valid Social Security numbers by the return’s due date.

Full-year residents file Form IT-201. For 2025, you must file if you have to file a federal return, or if your federal AGI plus New York additions was more than $4,000, or $3,100 if you are single and someone can claim you as a dependent; file anyway to get back New York tax withheld from your pay or to claim refundable credits. Nonresidents and part-year residents file Form IT-203 if they had New York-source income and their New York AGI, counting income from all sources, is more than their New York standard deduction.

Returns for 2026 are due April 15, 2027, as 2025 returns were due April 15, 2026. Form IT-370 gives an automatic six-month extension to file, to October 15, 2027 for 2026 returns, if you file it by the April due date and pay the tax you expect to owe in full. New York will not accept a copy of the federal extension instead, and no extension gives more time to pay: interest runs on any tax paid after April 15.

You generally must pay estimated tax, with Form IT-2105 or online, if you expect to owe at least $300 of New York State, New York City or Yonkers tax for 2026 after withholding and credits, or any MCTMT. To avoid an underpayment penalty, pay on time at least 90% of your 2026 tax or 100% of your 2025 tax, or 110% of it if your 2025 New York AGI was over $150,000 ($75,000 if married filing separately for 2026). There is no penalty if you owed no New York tax for a full 12-month 2025 tax year.

New York taxes residents on all their income and nonresidents only on New York-source income, such as pay for work done in the state and income from New York real estate. You are a resident if New York is your domicile, the permanent home you intend to return to, or if you keep a permanent place of abode in New York for substantially all of the year and spend 184 days or more in the state; any part of a day counts as a day. A New York domicile does not change until clear and convincing evidence shows you abandoned it and set up a new one, and easily controlled ties, such as where you vote or where your driver’s license and car registration are issued, are not primary factors.

In the year you move in or out, you file Form IT-203 as a part-year resident. New York figures a base tax as if you were a full-year resident, then applies the share of your income it can tax: everything received while a resident, plus New York-source income for the rest of the year. Moving out does not shift income into the nonresident months: income you had already earned and had a right to receive when you left, such as a bonus awarded before the move, and gains you elected to report on the installment basis belong to the resident period.

Commuters who live in New Jersey, Connecticut or Pennsylvania file Form IT-203 as nonresidents and pay New York tax on pay for work done in New York, but no New York City tax. If your primary office is in New York, days you work from home count as New York workdays unless your employer has a bona fide employer office where you telecommute; this is New York’s convenience of the employer rule. Your home state gives a credit for the New York tax on income both states tax.