New York State income tax rates for 2026 range from 3.9% to 10.9%, depending on taxable income and filing status. New York uses a progressive system, so higher rates apply as income moves into higher brackets. Residents of New York City and Yonkers may also owe local income tax on top of state and federal tax.
For 2026, New York lowered the rates on its five lowest brackets. The top rate stays at 10.9% on taxable income above $25 million.
For employees these rates matter because state and local withholding make a noticeable difference in take-home pay.
What Is the New York State Income Tax Rate in 2026?
New York has nine marginal income tax rates for 2026: 3.9%, 4.4%, 5.15%, 5.4%, 5.9%, 6.85%, 9.65%, 10.3% and 10.9%.
Your rate depends on your New York taxable income and filing status. Your highest marginal rate is not the percentage you pay on all of your income, though.
New York also uses special tax computation rules for some higher-income taxpayers, which can push the final bill above a simple bracket calculation.
New York State Income Tax Brackets for 2026
These brackets apply to single filers under New York's 2026 rate schedule.
| Taxable income (single) | Marginal tax rate |
|---|---|
| $0 to $8,500 | 3.9% |
| $8,501 to $11,700 | 4.4% |
| $11,701 to $13,900 | 5.15% |
| $13,901 to $80,650 | 5.4% |
| $80,651 to $215,400 | 5.9% |
| $215,401 to $1,077,550 | 6.85% |
| $1,077,551 to $5 million | 9.65% |
| $5 million to $25 million | 10.3% |
| Over $25 million | 10.9% |
Married couples filing jointly, married people filing separately and heads of household have different thresholds. The schedule shows marginal rates, but taxpayers with New York adjusted gross income above $107,650 must use the state's tax computation worksheets instead of applying these brackets alone.
How Does New York State Income Tax Work?
New York starts with federal adjusted gross income and applies state adjustments to reach New York adjusted gross income. Eligible taxpayers then subtract the New York standard deduction or itemized deductions plus any dependent exemptions.
The state figures the tax with the matching tax table or computation method. Credits then reduce the final amount.
New York Adjusted Gross Income − Deductions − Exemptions = New York Taxable Income
New York Standard Deduction in 2026
The standard deduction reduces the income subject to state tax. For a taxpayer who cannot be claimed as a dependent, it is $8,000 for single filers and $16,050 for married couples filing jointly. Other filing statuses and dependents have their own amounts.
The New York standard deduction is separate from the federal one. Taking the federal standard deduction does not mean the same amount applies on your New York return.
Marginal Tax Rate vs. Effective Tax Rate
A marginal rate applies to the next slice of taxable income in a bracket. An effective rate is total tax as a percentage of income.
A New York employee may fall in the 5.4% bracket but pay a lower effective rate once the lower brackets, deductions and credits are counted. The supplemental computation rules can also change the bill for higher earners.
New York City Income Tax in 2026
New York City residents pay city personal income tax on top of New York State income tax. The city's rates run from 3.078% to 3.876%, depending on taxable income and filing status.
The city tax applies to residents of the five boroughs:
- Manhattan
- Brooklyn
- Queens
- The Bronx
- Staten Island
Someone who works in New York City but lives outside it does not owe the city's resident income tax just because of where they work. That employee may still owe New York State income tax and other taxes.
Does New York City Income Tax Apply to Remote Workers?
The city tax is based on residency, not on where the work is done. A New York City resident who works remotely for an employer outside the city still owes city income tax. Working remotely from outside the city does not make a nonresident subject to it either.
New York State has separate rules for nonresident employees and telecommuting, including cases tied to an employer's New York office.
Yonkers Income Tax in 2026
Yonkers has its own local income tax. Residents owe a resident income tax surcharge of 16.75% of their net New York State tax.
If the state tax is $3,000, a simplified surcharge is $3,000 × 16.75% = $502.50. The actual amount depends on credits and the state calculation rules.
Nonresidents who earn wages working in Yonkers may owe the Yonkers nonresident earnings tax of 0.5% instead. The rules for a Yonkers resident are not the same as those for a nonresident who works in the city. The state's guide for New York City and Yonkers residents covers both.
How Does New York Income Tax Affect Your Paycheck?
Employers withhold New York State income tax from wages using the state withholding tables and the information on your withholding certificate. Depending on where you live, a paycheck can carry several separate tax lines:
| Paycheck deduction | What it represents |
|---|---|
| Federal income tax | Federal tax withholding |
| Social Security | Employee Social Security contribution |
| Medicare | Employee Medicare contribution |
| NY State income tax | New York State withholding |
| NYC income tax | New York City resident withholding |
| Yonkers tax | Yonkers withholding where it applies |
State withholding is not the same as other New York payroll deductions such as Disability Benefits or Paid Family Leave contributions. On many stubs the state line is labeled state income tax withholding (SIT), often followed by NY.
What Is Form IT-2104?
Form IT-2104 is New York's Employee's Withholding Allowance Certificate. Employees use it to give employers the information needed for New York State, New York City and Yonkers withholding.
Unlike the current federal Form W-4, IT-2104 still uses withholding allowances. Update it after a big change in income, filing status, jobs or family circumstances. The IT-2104 instructions explain each line. The Department of Taxation and Finance has also published its 2026 withholding tax changes for employers.
Where Is New York State Income Tax on Form W-2?
Form W-2 reports the year's wages and taxes withheld. For New York employees the state and local figures sit in these boxes, as the IRS W-2 instructions describe:
| W-2 box | Information |
|---|---|
| Box 15 | State and employer's state ID number |
| Box 16 | State wages, tips and other compensation |
| Box 17 | State income tax withheld |
| Box 18 | Local wages, tips and other compensation |
| Box 19 | Local income tax withheld |
| Box 20 | Locality name |
Box 17 matters most when you prepare your New York return, because it shows the state tax already withheld. If you had New York City or Yonkers withholding, check the local boxes too.
New York Residents vs. Nonresidents
New York taxes residents and nonresidents differently. Residents generally report income from all sources, with credits for tax paid elsewhere. Nonresidents pay New York tax on income sourced to New York. Part-year residents split their income between the resident and nonresident periods.
Who Is Considered a New York Resident?
Residency depends on domicile or statutory residency. You are generally a resident if New York is your domicile. You are also a statutory resident if you keep a permanent place of abode in the state for substantially all of the year and spend more than 183 days there. The rules have important exceptions, so individual facts matter.
What If You Live in Another State but Work in New York?
Nonresidents with New York-source wages may owe New York State income tax. New York also has special rules for some employees who work remotely outside the state for New York employers. If your home state taxes the same income, it usually gives a credit to reduce double taxation.
Neighboring commuters face a different picture depending on the home state. Nevada state income tax does not exist on wages at all, so a Nevada resident with New York-source wages pays only New York.
How to File a New York State Income Tax Return
Most full-year residents who must file use Form IT-201. Nonresidents and part-year residents use Form IT-203.
Gather your Form W-2, other income statements, records of deductions and credits and any estimated tax payments. Confirm whether New York City or Yonkers tax applies to you. For most calendar-year filers, the 2026 return is filed in 2027; check the deadline with the New York State Department of Taxation and Finance.
How to Check Your New York State Tax Refund
If you paid more New York tax than you owe, you may get a refund. After filing, use the state's refund status tool to track it. Processing time depends on how you filed and whether the state needs more information. Before filing, make sure the state withholding on your W-2 matches your pay records.
How Does New York Compare With Other States?
New York has one of the highest top marginal rates in the country, but its top rates reach only very high incomes. With several brackets plus deductions and credits, a typical employee's tax is far below the published maximum. To see where New York sits nationally, compare the state income tax rates by state for 2026.
Final Thoughts
New York State income tax in 2026 uses progressive rates from 3.9% to 10.9%. What you owe depends on taxable income, filing status, deductions, credits and any local taxes.
Employees in New York City or Yonkers should watch their local withholding closely. Reviewing Form IT-2104, your paystub deductions and your W-2 helps catch problems before you file. When you need records of New York pay, the New York paystub generator shows the state, city and Yonkers lines separately.
This article is general information about New York income tax, not tax advice. Rates and withholding rules change; check the New York State Department of Taxation and Finance or a tax professional for your situation.
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