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New York State Tax Guide: What You’ll Pay in 2023

En español | Here’s what to know about state taxes, whether you’re a New York resident who’s working or retired, or you’re considering a move to the state.

The big picture:

  • Income tax: 4 percent to 10.9 percent
    New York has nine tax brackets, ranging from 4 percent to 10.9 percent. Residents of New York City and Yonkers also pay local income tax on top of state tax.  
  • Property tax: 1.4 percent of a home’s assessed value (average)
    Real estate taxes vary widely by county and municipality across New York, with an average tax rate of 1.4 percent of a home’s assessed value in 2021, according to the Tax Foundation. 
  • Sales tax: 8.52 percent (average combined state and local)
    A sales tax rate of 4 percent is levied on the sale of goods and services, in addition to local tax rates as high at 4.875 across the state. The state’s average combined sales tax rate is 8.52 percent, according to the Tax Foundation. 

How is income taxed in New York?

The state’s nine tax brackets are below. New York City and Yonkers both add local income taxes on top of state income tax. Note that all of your income is not taxed at the same rate. For example, if you're a single filer who earned $80,000, the first $8,500 would be taxed at 4 percent. The next $8,501 to $11,700 would be taxed at $340 plus 4.5 percent and so on.

Single filers:

IncomeTax Rate
$0 to $8,5004%
$8,501 to $11,700$340, and 4.5% of income over $8,500
$11,701 to $13,900$484, and 5.25% of income over $11,700
$13,901 to $80,650$600, and 5.85% of income over $13,900
$80,651 to $215,400$4,504, and 6.25% of income over $80,650
$215,401 to $1,077,550$12,926, and 6.85% of income over $215,400
$1,077,551 to $5,000,000$71,984, and 9.65% of income over $1,077,550
$5,000,001 to $25,000,000$450,500, and 10.3% of income over $5,000,000
Over $25,000,000$2,510,500, and 10.9% of income over $25,000,000

Source: New York State Department of Taxation and Finance

Joint filers:

IncomeTax Rate
$0 to $17,1504%
$17,151 to $23,600$686, and 4.5% of income over $17,150
$23,601 to $27,900$976, and 5.25% of income over $23,600
$27,901 to $161,550$1,202, and 5.85% of income over $27,900
$161,551 to $323,200$9,021, and 6.25% of income over $161,550
$323,201 to $2,155,350$19,124, and 6.85% of income over $323,200
$2,155,351 to $5,000,000$144,626, and 9.65% of income over $2,155,350
$5,000,001 to $25,000,000$419,135, and 10.3% of income over $5,000,000
Over $25,000,000$2,479,135, and 10.9% of income over $25,000,000

Source: New York State Department of Taxation and Finance

All residents, whether you're a single or joint filer, who have an adjusted gross income over $107,650 also pay a supplemental tax. This amount is calculated based on your earnings and your tax-filing status (married filing jointly, single or married filing separately, or head of household). Check New York Form IT-201 (for residents) and Form IT-203 (for nonresidents/part-year residents) for more information on how that tax is calculated.

Watch the video below to learn how to identify your 2022 federal income tax brackets.

Understanding Your 2022 Federal Income Tax

Are pensions or retirement income taxed in New York?

Yes, money withdrawn from pensions and 401(k)s, 403(b)s and IRAs are combined and taxed as regular income. Tax rates run from 4 percent to 10.9 percent, just like for other income.

But federal, New York state pensions and military retirement pay are tax-exempt.

For those 59½ or older, the first $20,000 of retirement income (from a corporate pension, an IRA, a 401(k) account or another retirement plan) is tax-exempt. Married couples get a double exemption (each spouse is eligible for the $20,000 exclusion) for a total of $40,000.

AARP's retirement calculator can help you determine if you are saving enough to retire when — and how — you want.

What about investment income?

Capital gains from investments (including proceeds from property sales) are treated as ordinary personal income and are taxed at the same rates after an initial exemption.

Does New York tax Social Security benefits?

No, but you may pay federal taxes on a portion of your Social Security benefits, depending on your income. Up to 50 percent of your benefits will be taxed if you file an individual tax return and make between $25,000 and $34,000 in total income — or if you file jointly and as a couple make $32,000 to $44,000 in total income. And up to 85 percent of your benefits will be taxed by the federal government if your total income is more than $34,000 individually or $44,000 as a couple.

AARP's Social Security calculator can assist you in determining when to claim and how to maximize your Social Security benefits.

How is property taxed in New York? 

Property tax in New York is a local tax that’s based on the value of your home, which is assessed by the state. The average rate is 1.4 percent of the assessed value of your home, according to the Tax Foundation.

Note that property taxes vary widely by county and municipality across the state.

Learn how your home value is assessed on the New York Department of Taxation and Finance website — and even contest it. New York City residents can learn about how their property is assessed and calculate their property taxes at the New York City Department of Finance website. The state does not collect tax on personal property such as cars, boats or jewelry.

What about sales tax and other taxes?

  • Sales tax: There’s a 4 percent tax on many, but not all, consumer goods and services. Localities can add as much as 4.875 percent, and the average combined rate is 8.52 percent, according to the Tax Foundation. Find your local tax rate at the state taxation department's website.

    The state doesn’t tax most groceries, clothing valued under $110, prescription or nonprescription drugs, medical equipment and certain medical care services. A list of taxed and tax-exempt goods and services is on the state taxation department’s website.
  • Gas and diesel: There is a 8.05 cent-per-gallon tax on motor fuel in addition to state sales tax.

  • Alcohol: Beer is taxed at 14 cents per gallon, wine at 30 cents per gallon and liquor at $2.54 to $6.44 per gallon, depending on the percentage of alcohol. New York City charges an additional 12 cents per gallon of beer and an additional $1 per gallon of alcohol. State excise taxes on alcohol are paid by the vendor, but some or all may be included in the retail price.

  • Commuter tax: A 0.375 percent tax is levied on certain employers and self-employed people conducting business in the New York City metro area, which includes these boroughs and counties: the Bronx, Brooklyn, Manhattan, Queens, Staten Island, Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester.

  • Lottery: Lottery winnings are subject to local, state and federal taxes, but the amount varies depending on where you live and if you've moved to another state. More information is available at Publication 140-W.

Will I or my heirs have to pay inheritance and estate tax in New York?

While there is no inheritance tax in New York, estates are taxed at rates ranging from 5 percent to 16 percent after the current exemption of $6,110,000. In some rare cases, estates can face very steep taxes, known as the “tax cliff,” which can lead to the estate paying tax of more than 100 percent.

Taxpayers can avoid the cliff by bequeathing assets worth more than the state’s exemption amount to charity.

Are there any tax breaks for older New York residents?

Beyond the state income tax exemption on the first $20,000 for those 59½ or older — $40,000 for married couples — eligible seniors can lower their property taxes by reducing the assessed value of their home by as much as 50 percent. You must be 65 or older and meet certain income limitations and other requirements (check the New York State Department of Taxation’s website for details).

Each county, city, town, village or school district also sets a maximum income limit between $3,000 and $50,000 for that 50 percent exemption. Learn more on the state taxation department's website or call the department at 518-457-5181. A list of department phone numbers is available on its website.

Municipalities may also use a sliding scale for partial tax relief for seniors with incomes higher than the local limit. Here is the income and tax exemption rate scale if you live in an area that uses the sliding scale:

  • $55,700 for a 20 percent exemption
  • $57,500 for a 10 percent exemption
  • $58,400 for a 5 percent exemption

Are military benefits taxed in New York?

New York does not tax military pensions. Active-duty pay is taxed like normal income if you are a resident of the state. If you weren’t a full-time New Yorker when you entered the military but were assigned duty in the state, you’re considered a nonresident. So your military pay is tax-exempt in New York.

Military spouses may be eligible for certain tax benefits under the federal Servicemembers Civil Relief Act, including income tax exemption and an option to use the same state of residency as the service member.

What is the deadline for filing New York state taxes in 2023?

The deadline to file a New York state tax return is April 18, which is also the deadline for federal tax returns. For help estimating your annual income taxes, use AARP's tax calculator.

New Yorkers who owe income taxes but need an extension should file on or before the April 18 deadline. Details on how to get a six-month extension (until Oct. 16) are available on the state taxation department's website

Even with an extension, New York filers will still be subject to late tax payment penalties. Filing for an extension on time — that is, on April 18 — only eliminates late filing penalties. If you fail to file your tax return payment by Oct. 16, you will be subject to both penalties in addition to your initial tax payment.

This guide was updated on Feb. 10, 2023, with New York's latest state and local sales tax rates. The guide was first published on Dec. 16, 2022.

Also of Interest:

Catherine Maddux is a contributing writer who covers federal and state policy. She previously worked as a reporter for Voice of America, the United Nations and  NPR News

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