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New York State Income Tax (2024)

Quick Reference

Single and Married Filing Separately

  • 4.00% on income up to $8,500
  • 4.50% on income $8,501 to $11,700
  • 5.25% on income $11,701 to $13,900
  • 5.50% on income $13,901 to $80,650
  • 6.00% on income $80,651 to $215,400
  • 6.85% on income $215,401 to $1,077,550
  • 9.65% on income $1,077,551 to $5,000,000
  • 10.30% on income $5,000,001 to $25,000,000
  • 10.90% on income over $25,000,000

Married Filing Jointly and Qualifying Surviving Spouse

  • 4.00% on income up to $17,150
  • 4.50% on income $17,151 to $23,600
  • 5.25% on income $23,601 to $27,900
  • 5.50% on income $27,901 to $161,550
  • 6.00% on income $161,551 to $323,200
  • 6.85% on income $323,201 to $2,155,350
  • 9.65% on income $2,155,351 to $5,000,000
  • 10.30% on income $5,000,001 to $25,000,000
  • 10.90% on income over $25,000,000

Head of Household

  • 4.00% on income up to $12,800
  • 4.50% on income $12,801 to $17,650
  • 5.25% on income $17,651 to $20,900
  • 5.50% on income $20,901 to $107,650
  • 6.00% on income $107,651 to $269,300
  • 6.85% on income $269,301 to $1,616,450
  • 9.65% on income $1,616,451 to $5,000,000
  • 10.30% on income $5,000,001 to $25,000,000
  • 10.90% on income over $25,000,000

Tax Computation

New York uses federal AGI as starting point:

  1. Start with federal AGI
  2. Add New York additions (e.g., state tax refunds, certain bond interest)
  3. Subtract New York subtractions (e.g., pension income exclusion, Social Security, certain college savings)
  4. Result = New York AGI
  5. Subtract itemized deductions or standard deduction
  6. Subtract dependent exemptions
  7. Result = New York taxable income
  8. Apply tax rates above

Details

New York Additions to Federal AGI

Common additions:

State and local tax refunds: - If deducted on federal Schedule A in prior year - Taxable for New York purposes

Interest on non-NY state and local bonds: - Exempt from federal tax but taxable for NY - Example: California municipal bond interest

Certain partnership and S corporation income: - Adjustments for federal vs. NY differences

Section 529 plan rollovers: - Certain 529-to-529 rollovers may require adjustment

New York Subtractions from Federal AGI

Pension and annuity income exclusion: - Up to $20,000 exclusion for taxpayers age 59.5 or older - Applies to pension, annuity, IRA, and certain other retirement income - Reduced dollar-for-dollar by Social Security/RR benefits excluded on federal return

Social Security benefits: - Fully exempt from New York tax (even if taxable federally)

US government bond interest: - Exempt from state tax (taxable federally)

529 plan contributions: - Up to $5,000 deduction per taxpayer ($10,000 MFJ) - NY 529 Direct Plan contributions only

Public employee retirement contributions: - Contributions to NY state and local retirement systems

Itemized Deductions

New York allows most federal itemized deductions with modifications:

Differences from federal:

State and local taxes: - Fully deductible (no $10,000 cap like federal) - Includes state income tax, local income tax, property tax, sales tax

Mortgage interest: - Generally follows federal rules - Acquisition debt limitation same as federal

Charitable contributions: - Generally follows federal rules - No special NY modifications for most taxpayers

Medical expenses: - Same 7.5% AGI floor as federal

Miscellaneous itemized deductions: - NOT allowed (suspended like federal through 2025)

Capital Gains

No preferential rate - New York taxes capital gains as ordinary income at full rates (4.00% to 10.90%).

Short-term vs. long-term: - No distinction for New York - Both taxed at ordinary income rates

Federal vs. New York: - Federal: 0%, 15%, 20% rates for long-term gains - New York: full ordinary income rates

Tax planning: - Selling appreciated assets while NY resident can result in 10.90% state tax - Plus 3.876% NYC tax if NYC resident - Plus federal tax (20% + 3.8% NIIT) = effective rate over 38%

Credits

New York offers various credits:

Household credit: - For low-to-moderate income taxpayers - Reduces tax liability - Phased out at higher income levels

NYC school tax credit: - For NYC residents - Partially offsets NYC tax for some taxpayers

Child and dependent care credit: - Based on federal credit - Percentage of federal credit (20% to 110% depending on income)

Empire State child credit: - For families with qualifying children - Income limits apply

Earned income credit: - 30% of federal EITC - Refundable

Real property tax credit: - For homeowners and renters - Income limits apply - Reduces tax on residence

College tuition credit: - For qualifying tuition expenses at NY institutions - Income limits and phase-outs apply

High Earner Rates

Millionaire's tax (extended multiple times):

Original expiration: 2011, extended through at least 2027

Higher brackets for income over thresholds: - Single/MFS: over $1,077,550 - MFJ/QSS: over $2,155,350 - HOH: over $1,616,450

Rates: - 9.65% on income up to $5,000,000 - 10.30% on income $5,000,001 to $25,000,000 - 10.90% on income over $25,000,000

Combined with NYC tax: - Top combined rate: 10.90% + 3.876% = 14.776% - Highest city+state rate in the nation

Citations

New York Tax Law: - NY Tax Law § 601 - Imposition of tax - NY Tax Law § 605 - Tax rates and tables - NY Tax Law § 611 - New York adjusted gross income - NY Tax Law § 612 - New York deductions - NY Tax Law § 606 - Credits against tax

Regulations: - 20 NYCRR § 112.1 - New York adjusted gross income of resident individuals - 20 NYCRR § 112.2 - New York itemized deductions

Forms: - IT-201 - Resident Income Tax Return - IT-196 - New York Resident, Nonresident, and Part-Year Resident Itemized Deductions - IT-201-ATT - Other Tax Credits and Taxes

NYS Department of Taxation and Finance: - Instructions for Form IT-201 - Publication 36 - General Information for Senior Citizens and Retired Persons - https://www.tax.ny.gov/pit/