What Changes in Your Paycheck in New York
Your paycheck in New York shows New York state income tax deduction that grows progressively with income. NYC and Yonkers residents see an additional local income tax line item. For a $1 salary in Buffalo, you might see ~ $1-$1 annually (~ $1-$1 per biweekly paycheck) deducted for state tax The same salary in NYC might show $1 state plus $1 local ($1 total, ~ $1 per paycheck). At $1, a NYC resident might see $1 state plus $1 local ($1 total, ~ $1 per paycheck). The progressive brackets mean pay raises result in larger tax increases, especially when crossing into higher brackets or when local taxes apply.
Example State Tax in New York
What you'll pay in New York state income tax at different salary levels (single filer, no deductions):
| Gross Salary | State Tax (Year) | Effective Rate |
|---|---|---|
| $50,000 | $2,711 | 5.4% |
| $75,000 | $4,174 | 5.6% |
| $100,000 | $5,714 | 5.7% |
| $150,000 | $8,839 | 5.9% |
Use the calculator above to see your exact take-home pay with your filing status and deductions.
New York Tax Brackets
How to read this: Only the income within each bracket is taxed at that rate. Your total tax is the sum across brackets.
| Income Range | Tax Rate |
|---|---|
| $0 - $8,500 | 4.00% |
| $8,500 - $11,700 | 4.50% |
| $11,700 - $13,900 | 5.25% |
| $13,900 - $80,650 | 5.85% |
| $80,650 - $215,400 | 6.25% |
| $215,400 - $1.08M | 6.85% |
| $1.08M+ | 8.82% |
Brackets shown for single filers. Married filing jointly brackets may differ. Use the calculator above to see your specific situation.
Understanding New York Taxes
Who Benefits
New York works best for lower and middle-income earners (under ~ $1 for singles, $1 for couples) who live outside NYC/Yonkers and benefit from progressive brackets with lower effective rates. At these income levels, effective state tax rates are 4%-5%, which can be competitive with or lower than flat-tax states Additionally, retirees with Social Security income benefit from exemptions. Upstate residents avoid NYC's local income taxes.
Who May Not Benefit
New York is particularly expensive for high earners, especially NYC residents. Someone earning $1 in NYC might pay ~ $1-$1+ annually in combined state and local income taxes (effective rate around 8%-10%), versus $1-$1 in upstate New York (6%-8% effective) High earners with geographic flexibility save $1-$1+ annually by moving to zero-tax or flat-tax states, especially if they can work remotely and avoid the 'convenience of employer' rule. NYC residents face the highest combined tax burden in the nation.
Key Facts That Affect Your Take-Home Pay
- New York has one of the highest top marginal state income tax rates at 10.9% for income over ~ $1 million (single) or $1 million (married), with effective rates reaching around 6.5%-8.5% for high earners earning $1-$1—among the highest state tax burdens in the nation.
- New York City and Yonkers levy additional income taxes on top of the state rate. NYC residents earning over ~ $1 may pay an additional 3.078%-3.876% local income tax, creating a combined state-plus-local rate that can exceed 12%-14% for high earners—the highest combined rate in the nation.
- New York's 'convenience of the employer' rule requires remote workers to pay New York income tax if they're working outside New York for their convenience (not their employer's requirement), even if they live and work in another state. This can create tax obligations to New York for people who never set foot in the state.
Common Mistakes People Make
Misconception: 'I work remotely from another state for a New York company, so I don't pay New York taxes.' Reality: New York's 'convenience of the employer' rule requires you to pay New York income tax if you're working remotely for your convenience, even if you live in Texas or Florida. You might need to file in both states and claim credits, but New York will tax your income if you're working remotely primarily for your own convenience, not your employer's business necessity.
Misconception: 'All New Yorkers pay the same high tax rates.' Reality: New York City and Yonkers residents pay additional local income taxes (3%+), but most upstate New Yorkers don't. A Buffalo resident earning $1 might pay an effective state rate around 6%, while a NYC resident earning the same amount might pay 6% state plus 3% local (9% effective), creating significant regional differences within the state.
Misconception: 'New York's tax deduction on federal returns makes high state taxes free.' Reality: While you can deduct state income taxes on your federal return (subject to the $1 SALT cap), this only reduces your federal tax burden—you still pay the full New York tax. The deduction provides partial relief (saving you maybe 22%-37% of what you paid in state tax, depending on your federal bracket), but you're still net paying 63%-78% of the state tax amount For high earners hitting the SALT cap, there's no federal tax benefit for New York taxes beyond $1.
One Thing to Know
New York's 'convenience of the employer' rule means remote workers living in other states may still owe New York taxes if they're working remotely for their convenience (not the employer's requirement). This catches many remote workers by surprise—they think moving out of New York eliminates their tax obligation, but it doesn't if the employer is based in New York.
Important Notes
These calculations are estimates based on current tax law. Your actual take-home pay varies based on:
- Pre-tax deductions (401(k), health insurance, HSA, etc.)
- Your W-4 withholding elections
- Additional income or deductions at tax time
- Individual circumstances and tax situations
Tax rates are subject to change. Federal and state tax laws may be updated annually. This is not tax advice. For personalized help, consult a tax professional familiar with New York tax laws.