New York City Income Tax Rates
New York City has its own income tax, which applies to all residents. The tax system is progressive, with the highest rates impacting those with higher incomes. As of 2024, the NYC income tax rates for a single filer are:
- 3.078% on income up to $12,000
- 3.762% on income between $12,001 and $21,600
- 3.819% on income between $21,601 and $45,000
- 3.876% on income over $45,000
The highest rate of 3.876% applies to income above $45,000 for single filers. Married couples or heads of households have slightly different income thresholds for the same rates.
Combined Tax Burden in NYC
In addition to NYC’s income tax, New York State imposes its own progressive tax rates. For individuals earning over $1 million, the state’s top tax rate is 10.3%, which is one of the highest in the country. When you combine federal, state, and local taxes, high-income earners in NYC face an effective tax rate that can exceed 40%.
Example of Highest Tax Rate
For an individual earning $500,000 in NYC, the effective tax rate (federal, state, and city combined) would be substantial. After federal taxes, New York State taxes, and NYC’s highest tax rate of 3.876%, this person could face a tax burden of over 45% of their income.
Why is the Tax Rate High?
The high tax rates in New York City help fund essential services like public transportation, education, healthcare, and other social services. While many argue that these taxes are necessary for maintaining the city’s infrastructure, others feel the burden is too high for residents.
