New York Income Tax Calculator
Estimate your effective tax rate based on the latest NYC income tax brackets and rates. Better plan your finances.
New York Income Tax Rate
Residents in New York pay federal, state, and local personal income tax (PIT) on income earned worldwide.
The Federal Income Tax rates for 2023 are:
| Taxable base (from) | Taxable base (to) | Tax rate |
| $0 | $11,600 | 1% |
| $11,601 | $47,150 | 12% |
| $47,151 | $100,525 | 22% |
| $100,526 | $191,950 | 24% |
| $191,951 | $243,725 | 32% |
| $243,726 | $609,250 | 34% |
| $609,251 | Remainder | 37% |
New York State Income Tax rates for 2023 are:
| Taxable base (from) | Taxable base (to) | Tax rate |
| $0 | $8,500 | 4% |
| $8,501 | $11,700 | 4.5% + $340 |
| $11,701 | $13,900 | 5.25% + $484 |
| $13,901 | $80,650 | 5.85% + $600 |
| $80,651 | $215,400 | 6.25% + $4,504 |
| $215,401 | $1,077,550 | 6.85% + $12,926 |
| $1,077,551 | $5,000,000 | 9.65% + $71,984 |
| $5,000,001 | $25,000,000 | 10.3% + $450,500 |
| $25,000,001 | Remainder | 10.9% + $2,510,500.49 |
Tax Law & Fines in New York
The United States tax system is administered by the Internal Revenue Service (IRS) and the New York State Department of Taxation and Finance. It includes taxes on income, payroll, estates, gifts, and more.
The IRS and New York State oversee tax filing deadlines, collection, audits, and imposition of penalties for non-compliance which can include:
- Failure to file taxes on time can result in IRS penalties of 5% of unpaid taxes each month up to 25% as well as New York penalties of 5% plus interest.
- Inaccurate reporting can result in IRS accuracy penalties up to 20% of the underpayment. At the state level penalties can be 20% or even 100% in cases of fraud.
- Tax fraud penalties can include IRS fines up to 75% of tax owed plus criminal prosecution. There is no statute of limitations on civil tax fraud. New York imposes additional fines between 10-50% depending on severity.
The IRS and New York State can investigate potential tax evasion through audits, subpoenas, asset seizure and more. Criminal tax offenses over $10,000 at the federal level or $50,000 at the NY state level can result in prison time.
Facts About The Tax System in New York City
- New York City has additional local income tax with rates ranging from 2.55% to 3.88% for higher income earners, making NYC an area with one of the highest combined state and local tax burdens.
- New York collects higher tax revenue per capita than any other state, driven by its high-income earners concentrated in New York City.
- New York derives over 60% of its state tax revenue from its personal income tax and sales tax, which has a 4% state rate plus local taxes.
- New York provides more financial support for local governments through state aid than most other states in the country.
Frequently Asked Questions
Got a question? We've got answers.
Progressive income tax uses graduated, increasing tax rates that apply to different income brackets. Here is a hypothetical example. Income tax in a random country is divided into brackets, like 0-$10k, $10k-40k, etc. Each bracket has a tax rate that increases as income rises. For example: 10% for 0-$10k and 15% for $10k-$40k and 25% for $40k-$85k. You calculate progressive income tax by applying the rate for each bracket only to the income in that bracket. So for $60k income, the progressive tax income will be 10% of first $10k and 15% of next $30k and 25% of remaining $20k. This will result in a total tax of $10,500.
Income tax is a tax levied on individuals and business entities based on their income or profits. It is imposed on taxable income, which is calculated as gross income minus any deductions and exemptions allowed under the tax code. For individuals, income tax typically applies to wages, salaries, tips, investment income like dividends and interest, business/self-employment income, capital gains, etc.
Social security contribution refers to the taxes paid into the social security system by employees, employers, and self-employed individuals. It’s used to fund several important social insurance programs such as retirement benefits, disability benefits, unemployment benefits, survivor benefits, medicare health insurance, etc.
Self-employed income refers to the earnings and revenues generated by individuals who are self-employed, operate their own business or have side projects. Some common examples of self-employed income include income from sales of products or services, consulting or freelance income, commissions, profit distributions, etc.
Self-employed expense refers to costs and expenditures incurred by individuals who are self-employed, owns their own business, or has a side project. Some common examples of self-employed expenses include equipment, supplies, insurance, professional fees, repairs and much more.
Need professional help? Talk to an tax accountant today