Using the NYC Tax Calculator
Living and working in the Big Apple comes with a unique tax structure. Our nyc tax calculator is designed to help New York City residents understand their true take-home pay by factoring in the three distinct layers of income tax: Federal, New York State, and the specific New York City local tax.
To get an accurate estimate, simply enter your annual gross salary and any pre-tax contributions you make to benefits like a 401(k) or health insurance premiums.
- Annual Gross Income
- Your total yearly salary before any taxes or deductions are taken out.
- Filing Status
- Choose between Single, Married Filing Jointly, or Head of Household, as this significantly changes your standard deduction and tax brackets.
- Pre-tax Deductions
- Any amounts taken out of your check before taxes are calculated, such as retirement contributions (Traditional 401k/403b), HSA contributions, or medical insurance premiums.
How NYC Income Tax Works
When you reside within the five boroughs of New York City (Manhattan, Brooklyn, Queens, The Bronx, and Staten Island), you are subject to a local personal income tax that is administered by the New York State Department of Taxation and Finance. This is in addition to the state-level tax.
Total Tax = Federal Income Tax + FICA + NY State Tax + NYC Local Tax
- Federal Income Tax: Progressive rates ranging from 10% to 37% based on IRS brackets.
- FICA: Includes Social Security (6.2% up to the wage base limit) and Medicare (1.45%).
- NY State Tax: Progressive state rates that currently top out at 10.9% for the highest earners.
- NYC Local Tax: A specific local tax that ranges from approximately 3.078% to 3.876%.
Calculation Example
Example: A single filer living in Brooklyn earning $100,000 gross per year with no pre-tax deductions.
Step-by-step breakdown:
- Federal Taxable Income: $100,000 – $14,600 (Std Deduct) = $85,400. Estimated Federal Tax: ~$13,500.
- FICA Tax: $100,000 * 7.65% = $7,650.
- NY State Taxable Income: $100,000 – $8,000 (Std Deduct) = $92,000. Estimated State Tax: ~$5,100.
- NYC Local Tax: Calculated on state taxable income ($92,000). Estimated City Tax: ~$3,500.
- Total Estimated Tax: $29,750
- Final Net Take-Home: ~$70,250 per year (or ~$5,854 per month).
Common Questions
Do I pay NYC tax if I work in NYC but live in NJ?
Generally, no. The New York City personal income tax is a "residency tax." If you are not a resident of the five boroughs, you typically do not pay the NYC local income tax, even if your office is located in Manhattan. However, you will still be subject to New York State non-resident income tax.
What is the NYC "Commuter Tax"?
The NYC commuter tax was eliminated in 1999. Currently, only residents of New York City pay the local personal income tax. Non-residents who work in the city are not charged a specific city-level income tax, though they must deal with the complexity of state-level credits between NY and their home state.
How can I lower my NYC tax liability?
The most effective way to lower your tax bill in the nyc tax calculator is to increase your pre-tax contributions. Contributing to a 401(k), 403(b), or an HSA reduces your "Adjusted Gross Income" (AGI), which is the number used to determine your tax bracket for Federal, State, and City levels.