New York State Income Tax Withholding
Last Updated: January 2026
Overview
New York imposes a progressive state income tax with nine brackets, ranging from 4.00% to 10.90%. Additionally, New York City residents are subject to a separate city income tax, and Yonkers residents pay a surcharge on their state tax. The complexity of local taxes makes New York one of the more challenging states for payroll withholding.
2026 Tax Rates
New York State Tax Rates (Single)
| Taxable Income | Rate |
|---|---|
| $0 - $8,500 | 4.00% |
| $8,501 - $11,700 | 4.50% |
| $11,701 - $13,900 | 5.25% |
| $13,901 - $80,650 | 5.50% |
| $80,651 - $215,400 | 6.00% |
| $215,401 - $1,077,550 | 6.85% |
| $1,077,551 - $5,000,000 | 9.65% |
| $5,000,001 - $25,000,000 | 10.30% |
| Over $25,000,000 | 10.90% |
Note: Married Filing Jointly and Head of Household have different bracket thresholds.
New York City Tax Rates (Residents Only)
| Taxable Income | Rate |
|---|---|
| $0 - $12,000 | 3.078% |
| $12,001 - $25,000 | 3.762% |
| $25,001 - $50,000 | 3.819% |
| Over $50,000 | 3.876% |
NYC tax applies to: All five boroughs (Manhattan, Brooklyn, Queens, Bronx, Staten Island)
Yonkers Tax (Residents Only)
| Category | Rate |
|---|---|
| Yonkers Resident | 16.75% of NYS tax |
The Yonkers surcharge is calculated as a percentage of the state tax liability, not the gross income.
Deductions and Exemptions
Standard Deduction:
- Single: $8,000
- Married Filing Jointly: $16,050
- Head of Household: $11,200
Dependent Exemption: $1,000 per dependent
Special Considerations
Required State Form
New York requires Form IT-2104 (Employee's Withholding Allowance Certificate). The federal Form W-4 is not accepted for New York withholding purposes.
Form IT-2104 collects:
- Residence information (critical for NYC/Yonkers tax)
- Number of allowances
- Additional withholding amounts
- Multi-state employment information
New York City Withholding
NYC residents must have additional city tax withheld. Employers must:
- Verify NYC residence on Form IT-2104
- Calculate state withholding
- Calculate additional NYC withholding
- Report both on the employee's pay stub
NYC vs. work location: The NYC tax applies based on residence, not work location. An NYC resident working in another state may still owe NYC tax.
Yonkers Withholding
Yonkers residents pay a 16.75% surcharge on their state tax. The surcharge is:
- Calculated on the state tax amount (not wages)
- Withheld in addition to state tax
- Reported separately on returns
Non-Resident Employees
Non-residents working in New York are subject to state tax on New York-source income, but not NYC or Yonkers taxes (unless they live in those cities).
Electronic Filing
All employers must file and pay electronically using New York's online system.
Metropolitan Commuter Transportation Mobility Tax (MCTMT)
Employers in the Metropolitan Commuter Transportation District (MCTD) must pay the MCTMT. This is an employer tax, not withheld from employees.
Related Topics
- State Withholding Guide Overview
- New York State Disability Insurance
- New York Paid Family Leave
- NY Metropolitan Commuter Transportation Tax