New York relies more on income taxes than almost any other state, and where you live inside the state matters as much as how much you earn. New York City residents pay a city income tax on top of the state tax, an 8.875% sales tax and some of the highest real estate transfer taxes in the country, while upstate homeowners face high property tax rates. Here is how each tax works in 2026.
Where New York tax money comes from
Share of state and local tax collections, fiscal year 2023, from the Tax Foundation.
State income tax
New York taxes income in nine brackets. The standard deduction is $8,000 for single filers and $16,050 for married couples filing jointly. Social Security is not taxed, and the first $20,000 a year of pension and annuity income is excluded for people 59½ or older; public pensions from New York and federal government employers are fully exempt.
| Rate | Single: taxable income over | Married filing jointly: over |
|---|---|---|
| 3.9% | $0 | $0 |
| 4.4% | $8,500 | $17,150 |
| 5.15% | $11,700 | $23,600 |
| 5.4% | $13,900 | $27,900 |
| 5.9% | $80,650 | $161,550 |
| 6.85% | $215,400 | $323,200 |
| 9.65% | $1,077,550 | $2,155,350 |
| 10.3% | $5,000,000 | $5,000,000 |
| 10.9% | $25,000,000 | $25,000,000 |
Brackets as published in the Tax Foundation’s 2026 state income tax table. Above about $107,650 of income, New York gradually phases out the benefit of the lower brackets, so higher earners pay close to their top rate on all of their income.
New York City and Yonkers income taxes
If you live in one of the five boroughs, you also pay New York City income tax, filed on the same state return. For single filers the rates are 3.078% on the first $12,000 of taxable income, 3.762% up to $25,000, 3.819% up to $50,000 and 3.876% above that. Working in the city without living there does not trigger the tax. Yonkers residents pay a surcharge equal to 16.75% of their net state tax, and nonresidents who work in Yonkers pay a small earnings tax.
For a single filer earning $75,000 with no pre-tax deductions in 2026:
| Where you live | State tax | City tax | Take-home pay |
|---|---|---|---|
| Upstate or Long Island | $3,453 | $0 | $58,140 |
| New York City | $3,453 | about $2,470 | about $55,670 |
| Compare: Texas or Florida | $0 | $0 | $61,593 |
From our Paycheck Calculator. The city figure applies the city rates to the same taxable income and ignores small city credits. Enter 3.876% as the local rate in the calculator for a close estimate.
Sales tax
The state rate is 4%, and counties and cities add their own taxes. In New York City the combined rate is 8.875%, including a 0.375% transportation surcharge. The population-weighted statewide average is 8.54%, 10th highest of the 50 states and D.C.
- Exempt: most groceries and prescription and over-the-counter drugs.
- Clothing and footwear under $110 per item: exempt from the 4% state tax; New York City and some counties also exempt it, while others charge their local rate.
- Taxed: most other goods, restaurant meals and many services, including parking, cleaning and hotel stays.
See how New York compares with every other state in our sales tax by state guide.
Property tax
Property taxes are set by counties, cities, towns and especially school districts, and they vary widely. Homeowners statewide pay an effective rate of about 1.30% of home value; rates are typically higher in upstate and suburban school districts and lower for owner-occupied homes inside New York City. At 1.30%, a home worth the state median of $423,800 pays about $5,500 a year.
- STAR: the School Tax Relief program lowers school taxes on a primary residence. New homeowners register with the state for the STAR credit, a check sent each year, rather than the older exemption.
- Enhanced STAR: a larger benefit for homeowners 65 and older whose income is under the yearly limit.
- Tax cap: most local governments and school districts cannot raise their property tax levy by more than 2% a year, or the rate of inflation if lower, without a supermajority or voter approval.
Other New York taxes
| Tax | 2026 rate or amount | Who pays |
|---|---|---|
| Estate tax | Up to 16% on estates above $7.35 million; the exemption is lost entirely above 105% of that amount | Estates of New York residents and of nonresidents with New York real estate |
| Real estate transfer tax | 0.4% statewide, plus a 1% “mansion tax” paid by buyers of homes of $1 million or more; higher rates in New York City | Sellers and buyers of real estate |
| Corporate franchise tax | 6.5% for most corporations | C corporations |
Frequently asked questions
What is the sales tax in New York City?
8.875%: 4% state, 4.5% city and a 0.375% Metropolitan Commuter Transportation District surcharge.
Does New York tax retirement income?
Social Security and New York or federal government pensions are not taxed. Other pensions, annuities and IRA withdrawals get a $20,000 yearly exclusion from age 59½; the rest is taxed.
Do I owe New York tax if I work remotely for a New York employer from another state?
Possibly. Under New York’s “convenience of the employer” rule, days worked from home outside the state for your own convenience can still count as New York wages. Check with a tax professional.
Who pays the New York estate tax?
Estates valued above the $7.35 million exclusion in 2026. Because of the cliff, an estate just above 105% of the exclusion pays tax on its entire value.
Last updated: November 5, 2026.
Sources
- Tax Foundation: New York tax data
- Tax Foundation: State Individual Income Tax Rates and Brackets, 2026
- Tax Foundation: State and Local Sales Tax Rates, Midyear 2026
- New York State Department of Taxation and Finance: Estate tax
- NYSSCPA: The New York estate tax cliff in 2026
- New York State Department of Taxation and Finance: STAR
- New York State Department of Taxation and Finance: Personal income tax