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New York State Tax Overview (2024)

Quick Reference

Tax Structure

State Income Tax: Progressive rates 4.00% to 10.90%

NYC Income Tax: Additional 3.078% to 3.876% for NYC residents

Yonkers Tax: Surcharge for Yonkers residents (percentage of state tax)

MCTMT: 0.34% self-employment tax for certain individuals in MCTD region

File Organization

This overview links to detailed files for each topic:

  • state-income-tax.md - NY state tax brackets and rates
  • nyc-income-tax.md - NYC resident tax brackets
  • yonkers.md - Yonkers resident surcharge rules
  • residency.md - Residency rules, 183-day test, convenience of employer
  • ptet.md - Pass-Through Entity Tax election

Standard Deduction (2024)

  • Single: $8,000
  • Married Filing Jointly: $16,050
  • Married Filing Separately: $8,000
  • Head of Household: $11,200

Key Deadlines

Individual Returns: - April 15 (calendar year) - Automatic 6-month extension available (file Form IT-370)

Estimated Tax: - April 15, June 15, September 15, January 15

PTET Elections: - Annual election due by March 15

Details

Triple Taxation Risk

New York residents may face three layers of income tax:

State Tax: - 4.00% to 10.90% on all income (resident rate)

NYC Tax (if NYC resident): - 3.078% to 3.876% additional tax

Yonkers Tax (if Yonkers resident): - 16.75% surcharge on state tax (residents) - 0.50% earned income tax (nonresidents working in Yonkers)

Example: NYC resident earning $500,000 - State tax: approximately $32,000 (top bracket) - NYC tax: approximately $16,000 - Total effective rate: approximately 9.6%

Multi-State Considerations

Common Scenarios:

NY-NJ Commuters: - Must file both states if working across state line - Credit for taxes paid to other state - NJ generally gives credit for NY tax paid - Watch convenience of employer rule

NY-CT Commuters: - Similar credit mechanism - CT gives credit for NY tax - Reciprocal agreement for certain municipal taxes

Remote Work: - Convenience of employer rule may apply - NY taxes income even if working remotely from home state - Major audit risk area

Audit Red Flags

FTB aggressively audits:

Residency changes: - High-income individuals claiming to move to FL, TX, NV - Statutory residency (183 days) vs. domicile - Maintaining NY home while claiming other state residency

Convenience of employer: - Remote workers claiming non-NY source income - Employer located in NY, employee works from home outside NY - NY presumes NY-source unless employer necessity

PTET elections: - Proper filing of partnership/S corp elections - Timing of estimated payments - Credit claims on individual returns

Filing Requirements

Residents: - Must file if gross income exceeds standard deduction plus exemption amounts - Practical threshold: approximately $4,000 to $8,000 depending on filing status

Nonresidents: - Must file Form IT-203 if any NY-source income - No minimum threshold

Part-Year Residents: - File Form IT-203 - Allocate income between resident and nonresident periods

Citations

New York Tax Law: - NY Tax Law Article 22 - Personal Income Tax - NY Tax Law § 601 - Imposition of tax - NY Tax Law § 605 - Tax rates - NY Tax Law § 607 - NYC resident tax - NY Tax Law § 631 - Resident defined - NY Tax Law § 632 - Resident individual's New York source income

NYC Administrative Code: - NYC Admin. Code § 11-1701 et seq. - NYC Personal Income Tax

Regulations: - 20 NYCRR Part 132 - Resident and Nonresident Individuals

NY Department of Taxation and Finance: - TSB-M-21(1)I - PTET guidance - Publication 361 - New York State Income Tax Information for Military Personnel and Veterans - https://www.tax.ny.gov/

Forms: - IT-201 - Resident Income Tax Return - IT-203 - Nonresident and Part-Year Resident Income Tax Return - IT-2658 - Report of Estimated Personal Income Tax for Nonresident Individual Partners and Shareholders - IT-370 - Application for Automatic Extension of Time to File - CT-34-SH - New York Pass-Through Entity Tax Credit