This tool is freely available and is designed to help you accurately estimate your 2026 tax return. The 2024 tax rates and thresholds for both the New York State Tax Tables and Federal Tax Tables are comprehensively integrated into the New York Tax Calculator for 2024. This tool is freely available and is designed to help you accurately estimate your 2025 tax return. New York state has a graduated, or progressive, individual income tax system that taxes lower-income taxpayers at a lower rate, while the highest-income taxpayers pay the most tax. However, with the current property prices in NYC, there’s a very good chance that you might exceed those limits, especially if you are selling a property that you have owned for a long time. In this case, you could be required to pay personal income tax on any profit that exceeds the limits.

What Are the Income Tax Credits in New York?

In this article, we break down the NYC income tax brackets for different filing statuses, explain available new york income tax tax credits, and discuss some ways to reduce or avoid paying the city income tax. We also cover other important considerations, like how selling property or renting it out can affect your taxes. If you’re looking for ways to manage or lower your NYC income taxes, this guide has got you covered.

& 2025 New York Tax Brackets

• Use our calculator to estimate your total state and federal tax liability for New York residents.
• Tools like TurboTax offer easy-to-use calculators that allow you to input your income and other relevant details to estimate your tax liability or refund.
• Tax information is based on publicly available data and may not reflect the most current tax laws or rates.
• Whether you’re a resident or non-resident, being aware of these rates can help you manage your finances more effectively and prevent any unwelcome surprises when tax season rolls around.

These New York state pay rates range from 4% to 10.9%, depending on your income level. With income taxes, property taxes, and sales taxes all on the higher side, New York ranks among the most heavily taxed states in the United States. Still, it is not without its advantages, and some tax perks can help offset the costs.

New York Tax Tables 2024 – Tax Rates and Thresholds in New York

• Another way to manipulate the size of your paycheck – and save on taxes in the process – is to increase your contributions to employer-sponsored retirement accounts like a 401(k) or 403(b).
• The NYC School tax credit is available to NYC residents who have a total household income below $250,000.
• You may have extra paperwork if you live in New York City or Yonkers, because those cities assess local income tax on top of state tax.
• For details on specific deductions available in New York, see the list of New York income tax deductions.
• Renewable energy tax credits, charitable giving, and tax-loss harvesting are just a few ways to lower taxes while contributing to personal and environmental goals.

High-net-worth individuals and business owners, in particular, can benefit from several strategies designed to reduce income tax. While New York as a whole has a generally high tax burden, it doesn’t necessarily mean you shouldn’t buy a home there. It does mean it’s a good idea to be aware of the ongoing expenses and build them into your budget. If you are considering using a mortgage to purchase or refinance a property in New York, our New York mortgage guide Bookkeeping for Startups can provide useful information about rates and getting a mortgage in the state.

• SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you.
• The State of New York collects $10,380 in state and local tax collections per capita.
• Using deductions is an excellent way to reduce your New York income tax and maximize your refund, so be sure to research deductions that you mey be able to claim on your Federal and New York tax returns.
• In New York, seniors aged 65 and older might qualify for a reduction in their property tax payments.

By using these tools, you can experiment with different scenarios, such as adjusting your withholding or making additional retirement contributions, to see how these changes might impact your tax situation. See our Withholding tax page or call our Withholding Tax Information Center. Investguiding is a website that accounting shares useful knowledge and insights for everyone about finance, investing, insurance, wealth, loans, mortgages, and credit. If you have a qualifying child or relative, you might qualify for the Child Tax Credit. PKF O’Connor Davies is the lead North American representative of the international association of PKF member firms.