How Much Income Tax Do You Pay in New York City?
New York City is known for many things: its towering skyscrapers, its vibrant cultural scene, and its...well, its high taxes. If you're considering moving to or living in the Big Apple, understanding how much income tax you'll be shelling out is a must. Let's break it down.
The Basics
New York State has a progressive income tax system, which means the more you earn, the higher your tax rate. There are also additional taxes to consider, such as the New York City personal income tax.
State Income Tax
Here's a quick breakdown of the New York State income tax brackets for 2023 (subject to change):
- Taxable Income | Tax Rate
- $0 - $3,875 | 4%
- $3,876 - $8,725 | 4.5%
- $8,726 - $13,525 | 5%
- $13,526 - $21,450 | 5.25%
- $21,451 - $29,375 | 5.5%
- $29,376 - $37,200 | 5.75%
- $37,201 - $45,025 | 5.9%
- $45,026 - $52,850 | 6%
- $52,851 - $60,675 | 6.15%
- $60,676 - $68,500 | 6.35%
- $68,501 - $76,325 | 6.5%
- $76,326 - $84,150 | 6.7%
- $84,151 - $91,975 | 6.85%
- $91,976 - $99,800 | 7%
- $99,801 - $107,625 | 7.15%
- $107,626 - $115,450 | 7.25%
- $115,451 - $123,275 | 7.35%
- $123,276 - $131,100 | 7.5%
- $131,101 - $138,925 | 7.65%
- $138,926 - $146,750 | 7.75%
- $146,751 - $154,575 | 7.85%
- $154,576 - $162,400 | 8%
- $162,401 - $170,225 | 8.15%
- $170,226 - $178,050 | 8.25%
- $178,051 - $185,875 | 8.35%
- $185,876 - $193,700 | 8.5%
- $193,701 - $201,525 | 8.65%
- $201,526 - $209,350 | 8.75%
- $209,351 - $217,175 | 8.85%
- $217,176 - $225,000 | 8.9%
- $225,000 or more | 9.65%
New York City Personal Income Tax
On top of the state income tax, New York City residents also have to pay a personal income tax. The rates are progressive, similar to the state tax.
Additional Considerations
- Federal Income Tax: Of course, you'll also need to pay federal income tax, which has its own set of brackets and rules.
- Sales Tax: New York City has a relatively high sales tax rate, so be prepared to pay more for your purchases.
- Property Tax: If you own property in New York City, you'll also be subject to property tax.
FAQs
How to calculate my New York City income tax?
To calculate your New York City income tax, you'll need to use the city's tax tables. You can find these on the city's Department of Finance website.
How to file my New York City income tax return?
You can file your New York City income tax return online, by mail, or by using a tax professional.
How to get an extension for my New York City income tax return?
If you need an extension to file your New York City income tax return, you can file Form 4506-T.
How to find a tax professional in New York City?
You can find a tax professional by searching online or by asking for recommendations from friends or family.
How to avoid paying too much income tax in New York City?
There are a few ways to avoid paying too much income tax in New York City. You can contribute to tax-deferred retirement accounts, claim deductions and credits, and make sure you are filing your taxes correctly.
Remember, it's always a good idea to consult with a tax professional to get personalized advice on your specific situation.
And if you're still considering moving to New York City, at least you'll know what to expect when it comes to taxes!