New York City Local Tax Guide (2026)
Understanding how local taxes work in New York City, New York, and how they affect your take-home pay.
In this guide
Last updated: October 1, 2026
- •New York City has a local income tax that applies to income earned in the city.
- •Residents pay 3.078%–3.876% on all income.
- •Local tax is separate from New York state tax and federal tax. Both are calculated independently and add to your total tax burden.
- •Local tax directly reduces your take-home pay. Combined with state and federal taxes, the total tax burden can be significant for high earners.
What New York City local tax costs at three incomes
The 3.078%–3.876% resident rate is charged on top of federal tax, New York state tax and FICA. Priced for 2026, a $75,000 salary loses $2,472 to New York City alone and takes home $55,312: a combined 26.3% of gross across all four.
| Salary | New York City tax | New York tax | Federal + FICA | Take-home | Total rate |
|---|---|---|---|---|---|
| $50,000 | $1,507 | $2,103 | $7,645 | $38,498 | 23.0% |
| $75,000 | $2,472 | $3,453 | $13,408 | $55,312 | 26.3% |
| $120,000 | $4,216 | $6,180 | $26,750 | $82,411 | 31.3% |
Living in New York City rather than only working there costs 3.30 percentage points more: $2,472 a year on $75,000, since non-residents pay 0.00%.
How New York City compares
Of the 62 US jurisdictions that levy a local income tax, New York City ranks 1st by resident rate. The median is 2.50%, the highest is New York City at 3.078%–3.876%, and the lowest is St. Louis at 1.00%. Below it sits Philadelphia (3.735%).
What local taxes apply in New York City
New York City has a local income tax that applies to income earned in the city.
Key Takeaway
| Residency Status | Rate | Applies To |
|---|---|---|
| Resident | 3.078%–3.876% | All income |
New York City has a local income tax that applies to income earned in the city. The rate depends on whether you're a resident or non-resident.
New York City has a city income tax on the people who live in the city. The tax is separate from New York State income tax and is calculated on your New York taxable income: your income after the state standard deduction.
Residents: If you live in New York City, you pay graduated rates of 3.078%–3.876% on all your taxable income, regardless of where you work. The top rate applies above $50,000 of taxable income for single filers and $90,000 for joint filers.
Non-residents: If you work in New York City but live elsewhere, you owe no New York City income tax on your wages. The city's non-resident earnings tax was repealed for wages earned on or after July 1, 1999.
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How they interact with state taxes
New York City local tax is calculated separately from New York state income tax. Both taxes are calculated on your taxable income and are withheld by your employer.
Tax Deduction
New York City local tax is calculated separately from New York state income tax. This means:
- Local tax is in addition to state tax, not instead of it
- Both taxes are calculated on your taxable income (or wages, depending on the tax type)
- Your employer withholds both local and state taxes from your paycheck
- You may be able to deduct local tax on your state tax return, depending on New York tax rules
For example, if you earn $100,000 in New York City, you pay New York state tax on that income, plus New York City local tax. The local tax doesn't reduce your state taxable income.
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Who is affected
You're subject to New York City local tax if you live in the city or work in the city, depending on whether you're a resident or non-resident.
You're subject to New York City tax if:
- You live in New York City for the whole year (residents pay on all income)
- You moved into or out of the city during the year (you pay on the income from the part of the year you lived there)
You're not subject to NYC income tax if you live outside the city, even if you work there or are a New York State resident.
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Common paycheck misconceptions
Common misunderstandings about New York City local tax, including when it applies and how it's calculated.
Common misconceptions about New York City tax:
- "Commuters into NYC pay city tax": False. Only residents pay New York City income tax; the commuter tax on non-residents ended in 1999.
- "It's a flat 3.876%": False. That is the top rate. The tax is graduated, starting at 3.078%, and is charged on taxable income after the New York standard deduction, not on gross pay.
- "Remote work means no tax": If you're a NYC resident, you pay on all income regardless of where you work.
Take-home pay impact
New York City local tax directly reduces your take-home pay. The amount depends on your income level and whether you're a resident or non-resident.
New York City tax significantly impacts take-home pay, especially for residents. For example, if you earn $150,000 as a NYC resident:
- NYC tax: approximately $5,379 annually
- This reduces your bi-weekly paycheck by about $207
- Combined with New York State tax (3.9% to 10.9% in 2026) and federal tax, the highest earners can face a combined marginal rate exceeding 50%
To see exactly how New York City local tax affects your paycheck, use our calculator above. You can adjust your income, filing status, and deductions to see how different scenarios affect your net pay.
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Does this apply to you?
Determine whether you're subject to New York City local tax based on where you live and work.
Check Your Pay Stub
You're subject to New York City local tax if:
- You live in New York City (residents pay on all income)
You're not subject to New York City local tax if you live and work outside the city, even if you're a New York resident.