Do I Have to Pay New York Taxes if I Work Remotely?

New York City does not impose an income tax on non-residents. If individuals live outside the five boroughs (Manhattan, Brooklyn, Queens, The Bronx, and Staten Island) and do not physically work in the city, they do not owe NYC income tax—even if the employer is based there.

It should be recognized New York State taxes may still apply.

New York State follows the Convenience of the Employer Rule. It states that if the job could be performed at the employer’s New York office but the employee chooses to work remotely from another state, the employee’s income may still be subject to New York State income tax.

In other words:

• If the remote work arrangement is required by the employer, you may not owe New York State taxes.
• If working remotely is the personal choice and the employer has an office in New York, the state may still tax your income.
• Employees working remotely from another state should have a clear agreement with their employer that specifies their primary work location.v

• NYC does not tax non-residents, even if they work remotely for an NYC company.
• New York State may still tax remote workers under the Convenience of the Employer Rule.
• If remote work is mandated by the employer, the employee may not owe NY state taxes.
• The 14-day rule for New York non-residents may provide relief in the case of work performed in New York for fewer than 14 days per year.

Tax laws for remote workers can be complicated. If you are not certain about surrounding tax obligations, Dimov CPA presents professional assistance in determining whether you owe New York taxes and establishing full compliance.