Guides
New York State Income Tax 2026: Brackets and Rules
New York State income tax for tax year 2026 runs across nine brackets, from 3.9% on the first dollars of taxable income up to 10.9% on income above $25,000,000. Rates on the lower and middle brackets stepped down under the FY 2026 state budget, and residents of New York City or Yonkers owe a separate local tax on top of the state figure. The rules below reflect New York law as of July 2026 and can change if the Legislature amends the tax code.
New York taxes residents on all income and taxes nonresidents only on New York source income. The state uses your federal adjusted gross income as a starting point, applies New York additions and subtractions, then applies the bracket schedule for your filing status. Figures cited here are for tax year 2026 (returns generally due April 15, 2027) unless labeled otherwise.
New York State income tax brackets for 2026
For tax year 2026, New York State income tax has nine rates: 3.9%, 4.4%, 5.15%, 5.4%, 5.9%, 6.85%, 9.65%, 10.3%, and 10.9%. The bottom four rates and the 5.9% bracket reflect reductions phased in under the FY 2026 budget signed in 2025. The top three brackets (9.65%, 10.3%, 10.9%) are the temporary high-earner rates currently scheduled to run through 2027.
The thresholds below apply to New York taxable income after deductions. They differ from the tax year 2025 schedule (returns filed in early 2026), which still opened at a 4% rate. Confirm the year that matches your return before you calculate.
2026 rates by filing status
| Rate | Single / Married filing separately | Married filing jointly / Surviving spouse | Head of household |
|---|---|---|---|
| 3.9% | $0 to $8,500 | $0 to $17,150 | $0 to $12,800 |
| 4.4% | $8,501 to $11,700 | $17,151 to $23,600 | $12,801 to $17,650 |
| 5.15% | $11,701 to $13,900 | $23,601 to $27,900 | $17,651 to $20,900 |
| 5.4% | $13,901 to $80,650 | $27,901 to $161,550 | $20,901 to $107,650 |
| 5.9% | $80,651 to $215,400 | $161,551 to $323,200 | $107,651 to $269,300 |
| 6.85% | $215,401 to $1,077,550 | $323,201 to $2,155,350 | $269,301 to $1,616,450 |
| 9.65% | $1,077,551 to $5,000,000 | $2,155,351 to $5,000,000 | $1,616,451 to $5,000,000 |
| 10.3% | $5,000,001 to $25,000,000 | $5,000,001 to $25,000,000 | $5,000,001 to $25,000,000 |
| 10.9% | Over $25,000,000 | Over $25,000,000 | Over $25,000,000 |
New York applies these as marginal rates, so a single filer with $90,000 of taxable income pays 5.9% only on the portion above $80,650, not on the full amount. Bracket thresholds can shift year to year, and a higher-income taxpayer may pay more than the bracket math suggests because of the recapture rules described next.
The tax benefit recapture (the near-flat tax on high earners)
New York recaptures the benefit of the lower brackets once New York adjusted gross income passes $107,650. Above that point, a supplemental tax phases out the savings from having early income taxed at the lower rates, so high earners can end up paying close to their top marginal rate on all their income rather than a blended rate.
The recapture is calculated on a worksheet in the Form IT-201 instructions and scales up across income tiers until it is fully phased in. For a taxpayer well into the 6.85% or 9.65% brackets, the practical effect is a near-flat tax on the whole return. The exact recapture amount depends on income level and filing status, so run the current-year worksheet rather than assuming a flat percentage.
New York City income tax for residents
New York City residents pay a separate city income tax on top of the state tax, at four rates from 3.078% to 3.876% for recent tax years. There is no separate NYC standard deduction schedule you elect; the city tax is computed on your city taxable income using Form IT-201 (or the city portion of IT-360.1 if you moved during the year).
New York City withholding tables were not changed for 2026, so the city rate structure carries over from the prior schedule while the state schedule was cut. NYC residency for the city tax follows the same domicile and statutory-resident concepts the state uses, applied to the five boroughs.
NYC resident tax rates
| Rate | Single / Married filing separately | Married filing jointly / Surviving spouse | Head of household |
|---|---|---|---|
| 3.078% | $0 to $12,000 | $0 to $21,600 | $0 to $14,400 |
| 3.762% | $12,001 to $25,000 | $21,601 to $45,000 | $14,401 to $30,000 |
| 3.819% | $25,001 to $50,000 | $45,001 to $90,000 | $30,001 to $60,000 |
| 3.876% | Over $50,000 | Over $90,000 | Over $60,000 |
A New York City resident earning a high salary can therefore face a combined state and city marginal rate approaching or exceeding 10% before the state top brackets even apply. The city does not tax nonresidents on wages, so commuters into the five boroughs generally owe no NYC personal income tax on that pay.
The Yonkers surcharge
Yonkers residents pay a surcharge equal to 16.75% of their net New York State income tax liability for 2026, not 16.75% of their income. If your state tax works out to $5,000, the Yonkers resident surcharge adds about $837.50 on top. This is reported on Form IT-201 alongside the state tax.
Yonkers also imposes a nonresident earnings tax at 0.50% on wages and net self-employment earnings sourced to work performed in Yonkers, after an exclusion allowance, filed on Form Y-203. Yonkers and New York City are the only two jurisdictions in the state that levy a local personal income tax, and the two use different mechanics: NYC applies its own rate schedule, while Yonkers piggybacks a percentage on your state liability.
Residency: full-year, part-year, and nonresident
New York treats you as a resident if your domicile is in New York, or if you keep a permanent place of abode in the state and spend more than 183 days there during the tax year (the statutory residency test). Residents are taxed on worldwide income. Nonresidents are taxed only on New York source income, and part-year residents split the year.
Domicile is your true, fixed, permanent home, and it does not change just because you spend time elsewhere; New York often audits domicile claims and looks at where your home, family, business ties, and valuables are. The 183-day statutory-resident test can pull in people who keep an apartment in the state even when they are domiciled elsewhere, so day counts and lodging matter.
Which return each residency status files
- Full-year residents file Form IT-201, Resident Income Tax Return, and report all income.
- Nonresidents and part-year residents file Form IT-203, Nonresident and Part-Year Resident Income Tax Return, and allocate income to New York.
- Taxpayers who changed New York City or Yonkers residency mid-year attach Form IT-360.1, Change of City Resident Status.
- Yonkers nonresidents with Yonkers-sourced earnings file Form Y-203.
A part-year resident who moves out of New York City mid-year, for example, prorates the city tax to the days as a city resident using the change-of-status form. Sourcing rules for nonresidents (such as which wages count as New York source) can be technical, so allocation is often where returns get complicated.
Standard deductions and where to file
New York offers a standard deduction rather than requiring itemization: recent amounts are $8,000 for single filers, $16,050 for married filing jointly, $8,000 for married filing separately, $11,200 for head of household, and $3,100 for a filer claimed as a dependent. These amounts are set by statute and can be adjusted, so confirm the figure for your tax year.
File electronically through New York State’s approved e-file channels or a tax professional, or mail the paper IT-201 or IT-203 to the address in the form instructions. New York requires e-filing in many cases where a preparer or software is used. The state deadline generally tracks the federal deadline of April 15 following the tax year.
New Yorkers who also run pass-through businesses may interact with a separate state regime worth understanding alongside the personal income tax. See our explainer on the New York Pass-Through Entity Tax (PTET) and the broader state-by-state PTET election status. For how state rates stack against the federal schedule, compare with the federal income tax brackets and rates, and for how New York’s overall burden ranks, see the state and local tax burden rankings. Business owners weighing entity choice can review the business entity comparison.
Frequently asked questions
What are the New York State income tax rates for 2026?
For tax year 2026, New York State has nine rates: 3.9%, 4.4%, 5.15%, 5.4%, 5.9%, 6.85%, 9.65%, 10.3%, and 10.9%. The 3.9% rate applies to the first bracket and 10.9% to income above $25,000,000. The lower and middle rates were reduced under the FY 2026 state budget. Rates can change if the Legislature amends the law.
Does New York City have its own income tax?
Yes. New York City residents pay a city income tax in addition to state tax, at rates from 3.078% to 3.876% for recent tax years, reported on Form IT-201. The city generally does not tax nonresident commuters on their wages. Residency for the city tax follows the same domicile and statutory-resident rules the state applies to the five boroughs.
How does the Yonkers income tax work?
Yonkers residents pay a surcharge equal to 16.75% of their New York State income tax liability for 2026, not a percentage of income, reported on Form IT-201. Yonkers also charges nonresidents a 0.50% earnings tax on wages and self-employment income sourced to Yonkers, after an exclusion allowance, filed on Form Y-203.
Who is a New York State resident for tax purposes?
You are a New York resident if your domicile is in New York, or if you keep a permanent place of abode in the state and spend more than 183 days there during the tax year. Residents are taxed on all income. Nonresidents pay tax only on New York source income, and part-year residents split the year on Form IT-203.
Why do high earners in New York pay close to a flat rate?
Once New York adjusted gross income exceeds $107,650, a supplemental tax recaptures the benefit of having early income taxed at the lower brackets. As income rises, this phases out the lower-bracket savings, so a high earner can effectively pay close to the top marginal rate on all income. The exact amount comes from a worksheet in the IT-201 instructions.
Which form do I file for New York State income tax?
Full-year residents file Form IT-201. Nonresidents and part-year residents file Form IT-203 and allocate income to New York. Taxpayers who changed New York City or Yonkers resident status during the year attach Form IT-360.1, and Yonkers nonresidents with city-sourced earnings file Form Y-203. Many filers using software or a preparer are required to e-file.
Reviewed by The Ledgerism Editorial Team. Last reviewed: July 2026.