Updated November 5, 2026 · Tax year 2026 · Reviewed against New York tax guidance

3.078%–3.876%

Understanding New York City income taxes can be confusing, especially when you are comparing salaries, reviewing a paycheck or deciding where to live. NYC has its own local income tax, separate from New York State income tax and federal income tax.

In this 2026 guide, you will find the NYC tax brackets for single, married and head of household filers, residency rules, Yonkers tax information and practical examples of how local taxes work.

2026 New York City Local Income Tax Rates

New York City uses a progressive income tax system. This means different portions of your taxable income are taxed at different rates. The highest rate does not apply to your entire income simply because you enter a higher tax bracket.

The 2026 NYC resident income tax rate schedule uses four marginal rates:

NYC tax rate	Tax treatment
3.078%	Lowest NYC income tax rate
3.762%	Second marginal rate
3.819%	Third marginal rate
3.876%	Highest marginal rate

These rates are used to calculate NYC resident income tax. The income thresholds depend on your federal filing status as recognized on your New York return.

2026 NYC Income Tax Brackets by Filing Status

Single and Married Filing Separately

NYC taxable income	Tax rate
$0–$12,000	3.078%
$12,001–$25,000	3.762%
$25,001–$50,000	3.819%
Over $50,000	3.876%

Married Filing Jointly

NYC taxable income	Tax rate
$0–$21,600	3.078%
$21,601–$45,000	3.762%
$45,001–$90,000	3.819%
Over $90,000	3.876%

Head of Household

NYC taxable income	Tax rate
$0–$14,400	3.078%
$14,401–$30,000	3.762%
$30,001–$60,000	3.819%
Over $60,000	3.876%

Important: These are marginal tax brackets, not flat tax rates. Your actual NYC tax is calculated progressively. The thresholds above are bracket boundaries; the official tax tables and calculation methods determine the final amount.

How Does NYC Local Income Tax Work?

NYC local income tax is calculated separately from federal and New York State income taxes. If you qualify as a New York City resident, your city income tax generally applies to your income regardless of where you earn it.

For most individual filers, NYC taxable income follows the New York State taxable-income calculation. Your deductions and other tax adjustments can therefore affect your local tax bill.

For example, consider a single taxpayer with $40,000 in NYC taxable income:

Illustrative NYC tax calculation

First $12,000 × 3.078% = $369.36

Next $13,000 × 3.762% = $489.06

Next $15,000 × 3.819% = $572.85

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Total illustrative NYC tax: $1,431.27

This example uses taxable income, not gross salary. Actual tax liability may differ because of tax-table rounding, credits and other applicable adjustments.

NYC Tax vs. New York State and Federal Income Tax

Many workers assume that New York City income tax includes their state and federal taxes. It does not. These are separate tax systems, and eligible taxpayers may owe all three.

Tax type	Who generally collects it?	Applies to
Federal income tax	U.S. government	Taxpayers under federal rules
New York State income tax	New York State	NY residents and certain nonresidents with NY-source income
NYC income tax	New York City	NYC residents
Yonkers resident surcharge	City of Yonkers through NYS tax system	Yonkers residents

Social Security and Medicare are additional payroll taxes. They are not NYC local income taxes, even though they also appear on many pay stubs.

Who Has to Pay NYC Local Income Tax?

Generally, people who qualify as New York City residents for tax purposes must pay NYC personal income tax if they meet the applicable filing requirements.

New York City includes five boroughs:

For tax purposes, your residency is not determined only by your employer’s address or where you spend your working hours.

Generally, you may be considered a NYC resident if:

• Your permanent and primary home (domicile) is in one of the five boroughs; or
• You maintain a permanent place of abode in NYC and spend 184 days or more in the city during the tax year, subject to the applicable residency rules.

Even if you temporarily live somewhere else, your original domicile may still matter. Changing your mailing address alone does not automatically end NYC tax residency.

Do You Pay NYC Tax If You Work in NYC but Live Outside the City?

This is one of the most common questions among New York workers.

In general, a person who lives outside New York City and is not a NYC resident does not owe NYC personal income tax simply because their job is located in Manhattan, Brooklyn, Queens, the Bronx or Staten Island.

However, that does not mean the worker has no New York taxes.

• A New York State resident living outside NYC generally pays NY State income tax.
• A New Jersey or Connecticut resident working in NYC may owe New York State income tax on New York-source earnings.
• NYC personal income tax generally does not apply to nonresidents.
• Special residency, sourcing and employment rules may change the result.

Example: Someone who lives in New Jersey and commutes to an office in Manhattan generally does not pay NYC resident income tax. However, New York State nonresident income tax may apply to their New York-source wages.

Remote workers should also review New York’s convenience-of-the-employer rules. Working remotely from another state does not automatically make all wages exempt from New York State tax.

Yonkers Income Tax Rates: A Separate Local Tax

Yonkers is not part of New York City. It has a separate local income tax system administered through New York State.

There are two important Yonkers taxes:

1. Yonkers Resident Income Tax Surcharge

People who qualify as Yonkers residents may owe an additional surcharge calculated using their New York State income tax. It is not a separate flat percentage of gross salary.

2. Yonkers Nonresident Earnings Tax

Some people who do not live in Yonkers but earn wages or self-employment income from work performed there may owe a nonresident earnings tax.

For 2026, the New York State Department of Taxation and Finance lists a 0.50% supplemental withholding rate for Yonkers nonresidents and 1.95975% for supplemental wages paid to Yonkers residents. These are supplemental wage withholding rates, not the general final annual tax rates for every taxpayer.

Check the official 2026 Yonkers withholding publication for the applicable calculation method.

How Much NYC Local Income Tax Will You Pay?

Your actual local tax depends on taxable income, filing status and applicable tax credits. The following examples show how the NYC rate schedule works.

Filing status	Taxable income	Applicable marginal rate on final portion
Single	$40,000	3.819%
Single	$75,000	3.876%
Married filing jointly	$70,000	3.819%
Head of household	$55,000	3.819%

These examples show the marginal rate on the last portion of income, not the effective tax rate or total tax bill.

How to Estimate Your NYC Take-Home Pay

Knowing the local tax rate is useful, but it does not tell you exactly how much money will reach your bank account.

Your paycheck may include:

• Federal income tax withholding
• New York State income tax withholding
• NYC resident income tax withholding, if applicable
• Social Security and Medicare taxes
• New York disability and Paid Family Leave deductions
• Health insurance, retirement contributions and other deductions

Calculate Your NYC Take-Home Pay

Want to see how federal, New York State and NYC taxes affect your actual paycheck? Use our free calculator to estimate your net pay based on your salary, filing status and pay frequency.Use NYC Paycheck Calculator →

How to Reduce Your Taxable Income

You cannot simply choose to stop paying applicable local taxes, but eligible deductions and credits may reduce your overall tax liability.

1. Review Your Retirement Contributions

Eligible traditional 401(k) contributions generally reduce federal and New York taxable wages or income, subject to the applicable rules. They generally do not reduce Social Security and Medicare wages.

2. Check Your Health Insurance Deductions

Qualifying employer-sponsored health insurance premiums may be deducted from pay before certain taxes are calculated.

3. Check Available Tax Credits

Depending on your circumstances, you may qualify for federal, New York State or NYC tax credits. Eligibility and income limits vary.

4. Check Your Withholding

Review your pay stub and withholding forms. Incorrect residency or filing-status information can cause too much or too little tax to be withheld.

2026 NYC Local Income Tax: Important Things to Remember

• NYC resident income tax rates range from 3.078% to 3.876%.
• Tax brackets depend on filing status.
• NYC local income tax is separate from New York State income tax.
• Living in NYC can make your income subject to city tax even when you work outside the five boroughs.
• Working in NYC does not automatically make you a NYC resident for income tax purposes.
• Yonkers has its own resident surcharge and nonresident earnings tax.

Official Sources and Tax References

We use government tax guidance and official publications to explain the rules and rates in this guide. Readers should check the latest instructions before filing a return.

This article is for general educational purposes and is not individual tax, legal or accounting advice. Tax liability depends on your personal circumstances, residency, income, deductions and credits.

Frequently Asked Questions

Related NYC Tax Guides

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