Calculator Use
The New York Tax Calculator is designed to help residents and commuters estimate their state and local income tax liability. New York has one of the most complex tax systems in the United States, featuring progressive tax brackets and additional local taxes for those living within New York City or Yonkers.
By using this tool, you can quickly estimate how much of your paycheck will go toward state and local government services. This is particularly useful for budgeting, salary negotiations, or planning for tax season.
- Gross Annual Income
- Enter your total yearly earnings before any taxes or deductions are removed. This includes wages, bonuses, and tips.
- Total Deductions
- Subtract your standard deduction or itemized deductions. For 2023, the NY standard deduction is approximately $8,000 for singles and $16,050 for married couples filing jointly.
- New York City Resident
- Select "Yes" if you live in any of the five boroughs of NYC, as you are subject to an additional local personal income tax.
How It Works
When you use the New York tax calculator, the system applies the current NY State Tax Brackets to your taxable income. New York uses a progressive tax system, meaning higher income levels are taxed at higher percentages. The formula is as follows:
Taxable Income = Gross Income – (Standard or Itemized Deductions)
The calculator iterates through the specific brackets for the tax year:
- Base NYS Brackets: Range from 4% for the lowest earners to 10.9% for high earners (over $25 million).
- NYC Local Tax: If applicable, an additional calculation is added ranging from 3.078% to 3.876%.
- Effective Rate: This is your total tax divided by your gross income, representing the actual percentage of your total pay that goes to NY taxes.
Calculation Example
Example: A single individual living in Brooklyn (NYC) earning $100,000 per year with a standard deduction of $8,000.
Step-by-step solution:
- Gross Income = $100,000
- Taxable Income = $100,000 – $8,000 = $92,000
- NYS Tax Calculation: Applying the progressive brackets (4% through 6.85%), the estimated NYS tax is approximately $5,500.
- NYC Local Tax: Applying NYC resident brackets, the estimated city tax is approximately $3,450.
- Total NY Tax: $5,500 + $3,450 = $8,950
- Effective Rate: 8.95%
Common Questions
Do I pay New York tax if I live in NJ but work in NY?
Yes. New York State requires you to pay income tax on all "New York source income." However, you usually receive a credit in your home state (New Jersey) for the taxes paid to New York so that you aren't double-taxed on the same income.
What is the NYC resident tax?
The NYC local tax is a specific income tax surcharge for residents of the five boroughs (Manhattan, Brooklyn, Queens, The Bronx, and Staten Island). Non-residents who work in NYC but live elsewhere generally do not have to pay this specific city tax.
Are NY tax brackets the same as Federal?
No, New York State has its own set of tax brackets and deduction rules that are independent of the Federal Internal Revenue Service (IRS). Our New York tax calculator specifically handles the state and city portions of your tax bill.