New York State Tax Guide: What You’ll Pay in 2024

New York has some of the highest sales and property tax rates in the country, though rates vary depending on where you live within the state.

• 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.  
  

• 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: 8.53 percent (average combined state and local)
  A 4-percent state sales tax is levied across New York, in addition to local state sales tax as high as 4.875 percent. The state’s average combined sales tax rate is 8.53 percent, according to the Tax Foundation.

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The state’s nine tax brackets are listed below. New York City and Yonkers both add local taxes on income 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 $8,500 to $11,700 would be taxed at 4.5 percent and so on.

Single filers:

Source:  New York State Department of Taxation and Finance


Joint filers:

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 filing details.

Watch the video below to learn how to identify your 2023 federal income tax brackets.

Yes, money withdrawn from pensions and 401(k)s, 403(b)s and IRAs are combined and taxed as regular income.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. But federal and 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. If you are married, 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.

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

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.

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 2021 data from the Tax Foundation.

Note that property taxes vary widely by county and municipality across the state. Four counties in New York — Nassau, New York, Rockland and Westchester — have tied for the highest median property taxes paid at $10,000, according to Tax Foundation data. Hamilton County has the lowest at $1,821.

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.

• Sales tax: Many, but not all, consumer goods and services are taxed at 4 percent statewide in addition to local sales tax as high as 4.875 percent. The average combined rate is 8.53 percent, according to the Tax Foundation. Find your local tax rate at the New York Department of Taxation and Finance’s website.

• Groceries: The state doesn’t tax most groceries, clothing valued under $110, prescription or nonprescription drugs, medical equipment and certain medical care services. Find a list of taxed and tax-exempt goods and services on the state website.

• Gas: 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 67 cents to $1.70 per liter, depending on the percentage of alcohol. New York City charges an additional 12 cents per gallon of beer and an additional 26 cents per liter 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 tax, which ranges from .11 to .6 percent, 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.
  

While there is no inheritance tax in New York, estates are taxed at rates ranging from 3.06 percent to 16 percent after the current exemption of $6,940,000.

The state offers an income tax exemption on the first $20,000 — $40,000 for married couples — for those 59½ or older.

Eligible seniors can reduce the assessed value of their home by as much as 50 percent to lower their property taxes. You must be 65 or older and meet certain income limitations as well as other requirements. Note that 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.

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

New York does not tax military pensions. Active-duty pay is taxed like normal income if you are a resident of the state.

You are not considered a resident and do not pay taxes on military pay if you weren’t living in New York full-time when you entered the military.

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.

The deadline to file a New York state tax return is April 15, 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 15 deadline. Details on how to get a six-month extension (until Oct. 15) 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 by April 15 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.


Editor's Note: This guide was originally published on Dec. 16, 2022, and has been updated to reflect new information.

Elissa Chudwin covers federal and state policy and writes the podcast Today’s Tips from AARP. She previously worked as a digital producer for  The Press Democrat in Santa Rosa, California, and as an editor for Advocate magazines in Dallas.

Catherine Maddux contributed to this story.

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