New York City local tax guide
Who pays New York City's local tax
Only residents pay. If you live in Manhattan, Brooklyn, Queens, the Bronx, or Staten Island, the city taxes all your income, including wages from a job in Jersey City or a remote employer in another state. If you live outside the five boroughs, you owe nothing to the city even if you work in Midtown every day. Residency can also be statutory: keeping a permanent home in the city and spending more than 183 days there makes you a resident for city tax. City government employees who live outside the city are the main exception and generally owe an equivalent charge under Section 1127.
How the New York City income tax works
The city tax uses the same taxable income as your New York State return, after the state's $8,000 standard deduction for a single filer. Four brackets then apply: 3.078% on the first $12,000, 3.762% from $12,000 to $25,000, 3.819% from $25,000 to $50,000, and 3.876% above $50,000. Every dollar of taxable income above $50,000 is taxed at the top city rate.
Because the starting point is New York income, traditional 401(k) contributions lower your city tax as well as your state and federal tax. The state's Department of Taxation and Finance administers the city tax, so there is no separate city return or city agency to deal with.
Worked example: $75,000 in the five boroughs
A single filer earning $75,000 has New York taxable income of $67,000. Federal income tax is $7,670, New York State tax is $3,453, Social Security is $4,650, and Medicare is $1,088. The city tax on $67,000 comes to $2,472, leaving take-home pay of $55,667, about $4,639 a month.
A commuter living outside the city keeps $58,139 on the same salary, so city residence costs $2,472 a year, about $95 per biweekly paycheck. At $100,000 the city bill is $3,441, and at $150,000 it is $5,379. These figures leave out New York's disability and paid family leave payroll deductions, which also come out of every check.
Withholding and filing
Form IT-2104, New York's withholding certificate, covers both state and city tax. When you move into the city, tell your employer so it starts withholding city tax; when you move out, update the form so it stops. Residents report the city tax on their state return, Form IT-201, and can claim small city credits there, such as the New York City school tax credit.
If you move in or out during the year, you owe city tax only for the part of the year you lived there, figured on Form IT-360.1. Keep records of your move date, since the state audits residency claims closely.
How New York City compares
New York State has two local income taxes on our site. Yonkers charges residents a surcharge that comes to $578 at $75,000, which is $1,894 less than a New York City resident pays at the same salary. Elsewhere in the state there is no local wage tax.
For people choosing between the city and its suburbs, the city tax is usually the deciding tax difference. Moving from Brooklyn to Westchester or Long Island while keeping a Manhattan job removes the city tax, but New York State still taxes the wages. The state comparison tool covers moves across state lines.
Tips for New York City paychecks
Update IT-2104 when you move
Payroll does not know you crossed the city line. Without a new IT-2104, a new city resident can end the year owing the full $2,472 at $75,000.
Count your days if you keep a city apartment
A permanent place of abode plus more than 183 days in the city makes you a statutory resident. A calendar or travel log is your best evidence.
Use pre-tax contributions
Traditional 401(k) and other pre-tax deductions cut New York City tax along with state and federal tax, so they save more in the city than in most places.
Compare before relocating
Use the relocation calculator to see how a move into or out of the five boroughs changes your paycheck.