New York State Taxes
Quick Tax Facts
Income Tax: 4% – 10.9%
State Sales Tax: 4%
Median Property Tax: $6,300
Overview
New York State has a lot more to offer than just The Big Apple and Broadway. The state is home to more than 2,000 wineries, 180 state parks, and historic Niagara Falls. Whether you crave quiet country living or the hustle and bustle of city life, you can find it all here. Unfortunately, all that diversity and opportunity comes at a price. Income, property, and sales taxes all run on the high side. It’s even more expensive if you live in New York City or Yonkers, where they tack on additional taxes.
New York Income Tax
New York State has a progressive income tax rate that increases with income and varies based on filing status. The state income tax rates currently range between 4% and 10.9%.
| New York Income Tax Rates – Single & Married Filing Separately |
|---|
| If your taxable income is: | Your tax rate is: |
|---|---|
| $0 – $8,500 | 4% |
| $8,501 – $11,700 | $340 plus 4.5% of the excess over $8,500 |
| $11,701 – $13,900 | $484 plus 5.25% of the excess over $11,700 |
| $13,901 – $80,650 | $600 plus 5.5% of the excess over $13,900 |
| $80,651 – $215,400 | $4,271 plus 6.% of the excess over $80,650 |
| $215,401 – $1,077,550 | $12,356 plus 6.85% of the excess over $215,400 |
| $1,077,551 – $5,000,000 | $71,413 plus 9.65% of the excess over $1,077,550 |
| $5,000,001 – $25,000,000 | $449,929 plus 10.30% of the excess over $5M |
| Over $25,000,000 | $2,509,929 plus 10.90% of the excess over $25M |
| New York Income Tax Rates – Married Filing Jointly |
|---|
| If your taxable income is: | Your tax rate is: |
|---|---|
| $0 – $17,150 | 4% |
| $17,151 – $23,600 | $686 plus 4.5% of the excess over $17,150 |
| $23,601 – $27,900 | $976 plus 5.25% of the excess over $23,600 |
| $27,901 – $161,550 | $1,202 plus 5.5% of the excess over $27,900 |
| $161,551 – $323,200 | $8,553 plus 6% of the excess over $161,550 |
| $323,2001 – $2,155,350 | $18,252 plus 6.85% of the excess over $323,200 |
| $2,155,351 – $5,000,000 | $143,754 plus 9.65% of the excess over $2,155,350 |
| $5,000,001 – $25,000,000 | $418,263 plus 10.30% of the excess over $5M |
| Over $25,000,000 | $2,478,263 plus 10.90% of the excess over $25M |
| New York Income Tax Rates – Head of Household |
|---|
| If your taxable income is: | Your tax rate is: |
|---|---|
| $0 – $12,800 | 4% |
| $12,801 – $17,650 | $512 plus 4.5% of the excess over $8,500 |
| $17,651 – $20,900 | $730 plus 5.25% of the excess over $11,700 |
| $20,901 – $107,650 | $901 plus 5.5% of the excess over $13,900 |
| $107,651 – $269,300 | $5,672 plus 6% of the excess over $80,650 |
| $269,301 – $1,616,450 | $15,371 plus 6.85% of the excess over $215,400 |
| $1,616,451 – $5,000,000 | $107,651 plus 9.65% of the excess over $1,077,550 |
| $5,000,001 – $25,000,000 | $434,163 plus 10.30% of the excess over $5M |
| Over $25,000,000 | $2,494,163 plus 10.90% of the excess over $25M |
Who Must File?
Full-time New York State residents must file Form IT-201, Resident Income Tax Return, if they meet any of the following conditions:
- They must file a federal income tax return;
- No federal tax return was filed but their recomputed federal adjusted gross income (AGI) plus New York income is more than $4,000 (or $3,100 if they are single and can be claimed as a dependent on another taxpayer’s federal return);
- They want to claim a refund of any New York State, New York City, or Yonkers income tax withheld from their pay; or
- Plan to claim any New York refundable or carryover tax credits.
Part-Year and Nonresidents
Part-year and nonresidents must file Form IT-203, Nonresident and Part-Year Resident Income Tax Return, if any of the following apply:
- They earned income while residing in New York State or had New York source income while residing outside the state and their New York adjusted gross income (federal amount) exceeds their New York standard deduction;
- They want to claim a refund of any New York state, New York City, or Yonkers income taxes withheld;
- There are refundable or carryover tax credits they plan to claim;
- For the tax year, they had a net operating loss for personal income tax purposes (state) without having a similar loss for federal income taxes.
For part-year residents may also have to file if they were subject to a separate tax on lump-sum distributions for their resident period (derived from or connected to New York sources). There may also be additional tax responsibilities if they were a New York City or Yonkers resident during the tax year.
New York Sales Tax
New York has a statewide sales tax rate of 4%, plus any local rate in effect where the sale or transaction takes place. The highest combined sales tax rate in the state is 8.875%. Most counties, however, average 8%.
New York Property Taxes
New York property taxes are assessed and collected at the local government level. Most residents receive two tax bills per year: September and January. The effective real estate property tax rate is 1.64%, which is high compared to most other states.
The median property tax bill in New York is $6,300. Westchester County has the highest average tax bill at $12,812. The lowest average property tax bill in the state is $2,197 in Hamilton County.
| Highest | $12812 |
|---|---|
| Median | $6300 |
| Lowest | $2197 |
Yearly Cost Per Resident
New York Tax Holidays
At this time, there are no tax holidays scheduled in New York.
New York Tax Relief
Tax problems can quickly become more complicated when a New York income tax balance goes unpaid. Penalties and interest may increase the amount you owe, and the New York State Department of Taxation and Finance may pursue collection efforts to recover delinquent taxes. Whether you’re dealing with unfiled returns, a change in your financial circumstances, or unpaid business taxes, addressing the issue promptly may help prevent additional collection activity.
For taxpayers who don’t have the means to pay their entire balance at once, New York provides several potential paths toward resolution. Depending on your circumstances and eligibility, you may be able to request an installment payment agreement, submit an Offer in Compromise, or explore other available tax relief options. Finding an appropriate resolution may also help you avoid or address enforcement actions such as tax warrants, wage garnishments, and bank levies.
Becoming familiar with New York’s tax collection process and your available resolution options can help you make informed decisions about what to do next. Taking action sooner can help you work toward resolving your outstanding tax debt and getting your New York tax account back on track.
Common New York State Tax Problems
Back Taxes
If you owe unpaid New York taxes, addressing your balance early may help you avoid additional penalties and collection actions.
Unfiled Tax Returns
Filing past-due New York tax returns is often the first step toward resolving your state tax issues.
Tax Notices
Notices from the NY Department of Revenue shouldn’t be ignored, as they often require prompt action to prevent further collections.
Liens & Levies
Unresolved tax debt may lead to liens against your property or levies on your assets as the state works to collect what is owed.
Garnishment
New York may garnish your wages to collect unpaid taxes, reducing the amount of each paycheck you receive.
Tax Penalties
Unpaid taxes can continue to accrue penalties and interest until your balance is resolved.
How New York Collects Tax Debt
If you owe New York state income taxes and haven’t paid, you’ll receive a balance due notice. You have approximately 30 days to respond or pay before additional notices and actions are taken. Failure to respond to these initial notices and letters will result in the state filing a Tax Warrant (lien).
Continued non-compliance will result in escalated collection actions, including, but not limited to:
- Wage garnishment
- Bank levies
- Asset seizure
- Tax refund offset
- Suspension of professional and/or driver’s license
Notice of Balance Due sent to taxpayer
Tax Warrant filed
Active collection actions
New York State Tax Relief Options
New York offers a few relief options, including:
- Installment Payment Agreements (IPA) – If you can’t pay your tax bill on time, you may be eligible to pay over several months (up to 36 months) through an IPA.
- Offer in Compromise – If paying your tax balance would create undue economic hardship, you may be able to settle your balance for less than you owe through an Offer in Compromise.
- Voluntary Disclosure and Compliance Program – If you haven’t filed because you may owe taxes, the Voluntary Disclosure and Compliance Program will get you back on track. It also allows you to avoid penalties and possible criminal charges.
If you’re experiencing financial hardship and can’t pay your New York income tax bill, contact the Department of Taxation and Finance as soon as possible to avoid collection actions.
When to Seek Tax Relief Help
If you’re experiencing any of the following, it may be time to explore your tax relief options:
You’re Receiving Collection Notices
Ignoring New York tax notices can lead to more serious collection actions, so it’s often best to address the issue early.
You Can’t Afford to Pay Your Taxes
If paying your New York state tax bill in full isn’t realistic, there may be payment or resolution options available.
Collection Actions Have Started
If you’re facing wage garnishments, bank levies, or tax liens, professional guidance may help you understand your options.
The sooner you address your tax debt, the more options you may have available to resolve your balance and minimize additional collection actions.
New York Tax Relief FAQs
New York Tax Resources
If you need assistance preparing your New York State taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.
You can also visit the New York Department of Taxation and Finance website for additional resources.
- Make a Payment
- Individual Income Tax Forms
- Check Your Refund
- Customer Service: 518-457-5181
