New York State Taxes: What You’ll Pay in 2025

The top income tax rate in New York is among the highest in the nation. New York also has some of the highest sales and property tax rates in the country, though rates vary depending on where you live within the state.

The big picture:

• Income tax: 4 percent to 10.9 percent New York has nine tax brackets that range from 4 to 10.9 percent. Residents of New York City and Yonkers also pay local income tax.  

• Property tax: 1.54 percent of a home’s assessed value (average) Real estate taxes vary widely by county and municipality across New York, with an average tax rate of 1.54 percent of a home’s assessed value in 2022, according to the Tax Foundation.

• Sales tax: 8.53 percent (average combined state and local) A 4 -percent state sales tax is levied across New York, in addition to local state sales tax as high as 4.875 percent in local state sales tax. The state’s average combined sales tax rate is 8.53 percent, according to the Tax Foundation.

How is income taxed in New York?

The state’s nine tax brackets are listed below. New York City and Yonkers both add local taxes on income on top of state income tax.

Note that all of your income is not taxed at the same rate. For example, if you’re a single filer who earned $80,000, the first $8,500 would be taxed at 4 percent. The next $8,500 to $11,700 would be taxed at 4.5 percent and so on.

Single filers and married couples filing separately:

Income

 

Tax Rate

 

$0 to $8,500

 

4%

 

Over $8,500 to $11,700

 

$340, and 4.5% of income over $8,500

 

Over $11,700 to $13,900

 

$484, and 5.25% of income over $11,700

 

Over $13,900 to $80,650

 

$600, and 5.5% of income over $13,900

 

Over $80,650 to $215,400

 

$4,271, and 6% of income over $80,650

 

Over $215,400 to $1,077,550

 

$12,356, and 6.85% of income over $215,400

 

Over $1,077,550 to $5,000,000

 

$71,413, and 9.65% of income over $1,077,550

 

Over $5,000,000 to $25,000,000

 

$449,929, and 10.3% of income over $5,000,000

 

Over $25,000,000

 

$2,509,929, and 10.9% of income over $25,000,000

 

Source:  New York State Department of Taxation and Finance

Joint filers and surviving spouses:

Income

 

Tax Rate

 

$0 to $17,150

 

4%

 

Over $17,150 to $23,600

 

$686, and 4.5% of income over $17,150

 

Over $23,600 to $27,900

 

$976, and 5.25% of income over $23,600

 

Over $27,900 to $161,550

 

$1,202, and 5.5% of income over $27,900

 

Over $161,550 to $323,200

 

$8,553, and 6% of income over $161,550

 

Over $323,200 to $2,155,350

 

$18,252, and 6.85% of income over $323,200

 

Over $2,155,350 to $5,000,000

 

$143,754, and 9.65% of income over $2,155,350

 

Over $5,000,000 to $25,000,000

 

$418,263, and 10.3% of income over $5,000,000

 

Over $25,000,000

 

$2,478,263, and 10.9% of income over $25,000,000

 

Source: New York State Department of Taxation and Finance

Head-of-household filers:

Income

 

Tax Rate

 

$0 to $12,800

 

4%

 

Over $12,800 to $17,650

 

$512, and 4.5% of income over $12,800

 

Over $17,650 to $20,900

 

$730, and 5.25% of income over $17,650

 

Over $20,900 to $107,650

 

$901, and 5.5% of income over $20,900

 

Over $107,650 to $269,300

 

$5,672, and 6% of income over $107,650

 

Over $269,300 to $1,616,450

 

$15,371, and 6.85% of income over $269,300

 

Over $1,616,450 to $5,000,000

 

$107,651, and 9.65% of income over $1,616,450

 

Over $5,000,000 to $25,000,000

 

$434,163, and 10.3% of income over $5,000,000

 

Over $25,000,000

 

$2,494,163, and 10.9% of income over $25,000,000

 

Source: New York State Department of Taxation and Finance

All residents, regardless of your filing status, who have an adjusted gross income over $107,650 also pay a supplemental tax. This amount is calculated based on your earnings and your tax-filing status (single, married filing jointly, married filing separately, head of household, or qualifying surviving spouse). Check New York Form IT-201 (for residents) and Form IT-203 (for nonresidents/part-year residents) for filing details.

Watch the video below to learn how to identify your 2024 federal income tax brackets.

Are pensions or retirement income taxed in New York?

Yes, money withdrawn from pensions and 401(k)s, 403(b)s and IRAs are combined and generally taxed as regular income to the same extent they’re taxed at the federal level. Tax rates run from 4 percent to 10.9 percent.

But federal and New York state government pensions and military retirement pay are tax-exempt.

For those 59½ or older, the first $20,000 of retirement income (from a corporate pension, an IRA, a 401(k) account or another retirement plan) is tax-exempt. If you are married, each spouse is eligible for the $20,000 exclusion, for a total of $40,000.

AARP’s retirement calculator can help you determine if you are saving enough to retire when — and how — you want.

What about investment income?

Capital gains from investments (including proceeds from property sales) are treated as ordinary personal income and are taxed at the same rates.

Does New York tax Social Security benefits?

No, but you may pay federal taxes on a portion of your Social Security benefits, depending on your "provisional income." In most cases, provisional income is equal to the combined total of half your Social Security benefits, your adjusted gross income (not including any Social Security benefits) and any tax-exempt interest for the year.

Up to 50 percent of your benefits will be taxed if your provisional income is $25,001 to $34,000--or if you file jointly and your provisional income is $32,001 to $44,000.

Up to 85 percent of your benefits will be taxed if your provisional income is more than $34,000 individually or more than $44,000 as a couple.

AARP’s Social Security calculator can assist you in determining when to claim your Social Security benefits and how to maximize them.

How is property taxed in New York? 

Property tax in New York is a local tax that’s based on the value of your home. The average rate is 1.54 percent of the assessed value of your home, according to 2022 data from the Tax Foundation.

Note that property taxes vary widely by county and municipality across the state. The median property taxes paid exceed $10,000 in six New York counties — Nassau, New York, Putnam, Rockland, Suffolk, and Westchester — according to Tax Foundation data. Hamilton County has the lowest, at $2,197.

Learn how your home value is assessed on the New York Department of Taxation and Finance website — and even contest it. New York City residents can learn about how their property is assessed and calculate their property taxes at the New York City Department of Finance website. The state does not collect tax on personal property, such as cars, boats or jewelry.

What about sales tax and other taxes?

• Sales tax: Many, but not all, consumer goods and services are taxed at 4 percent statewide in addition to local sales tax as high as 4.875 percent. The average combined rate is 8.53 percent, according to the Tax Foundation. Find your local tax rate at the New York Department of Taxation and Finance’s website.

• Groceries: The state doesn’t tax most groceries, clothing valued under $110, prescription or nonprescription drugs, medical equipment and certain medical care services. Find a list of taxed and tax-exempt goods and services on the state website.

• Gas: There is a 8.05 cent-per-gallon tax on motor fuel in addition to state sales tax.

• Alcohol: Beer is taxed at 14 cents per gallon. Wine is taxed at 30 cents to $6.44 per gallon, depending on the percentage of alcohol. The tax on liquor is either 67 cents or $1.70 per liter, depending on the percentage of alcohol. New York City charges an additional 12 cents per gallon of beer and an additional 26 cents per liter of alcohol or wine with higher percentages of alcohol. State excise taxes on alcohol are paid by the vendor, but some or all may be included in the retail price.

• Commuter tax: A tax is levied on certain employers and self-employed people conducting business in the New York City metro area, which includes these boroughs and counties: the Bronx, Brooklyn, Dutchess, Manhattan, Nassau, Orange, Putnam, Queens, Rockland, Staten Island, Suffolk and Westchester. The tax rate for employers ranges from .11 percent to .6 percent. For self-employed people, the rate is either .34 percent or .6 percent.

• Lottery: Lottery winnings are subject to local, state and federal taxes, but the amount varies depending on where you live and if you've moved to another state. More information is available at Publication 140-W.  

Will I or my heirs have to pay inheritance and estate tax in New York?

While there is no inheritance tax in New York, estates are taxed at rates ranging from 3.06 percent to 16 percent after the current exemption of $7,160,000.

Are there any tax breaks for older New York residents?

In addition to the Social Security exemption mentioned earlier, New York offers a few other tax breaks to help older residents.

• Pension income exclusion: As noted above, the state offers an income tax exemption on the first $20,000 of pension and annuity income — up to $40,000 for married couples — for those 59½ or older.

• Real property tax credit: An income tax credit is available to qualified residents who have a household income of $18,000 or less and pay real property taxes or rent for their residences. For most people, the annual credit tops out at $75. However, if at least one member of your household is 65 or older, the credit can be as much as $375.

• Enhanced STAR benefits: Under the School Tax Relief (STAR) program, eligible homeowners can get either an exemption or credit for school district property taxes. However, residents age 65 or older with incomes below a certain level qualify for increased STAR benefits. The income threshold is $98,700 for the 2024-2025 school year ($107,300 for the 2025-2026 school year).

• Senior citizens exemption: Eligible residents can reduce the assessed value of their home by as much as 50 percent to lower their property taxes. You must be 65 or older and meet certain income limitations as well as other requirements. Note that each county, city, town, village or school district also sets a maximum income limit between $3,000 and $50,000 for that 50 percent exemption. Municipalities may also use a sliding scale for partial tax relief for seniors with incomes higher than the local limit.

• Senior citizen rent increase exemption: Local governments can adopt property tax exemptions that essentially freeze rent payments for low-income residents who are at least 62 years old and live in a rent-controlled apartment. If there’s a rent increase, the older adult’s rent stays the same and the landlord receives a property tax credit equal to the rent increase. To qualify, the older person’s income can’t exceed a maximum amount set by local law (not to exceed $50,000). This exemption expires on June 30, 2026.

Are military benefits taxed in New York?

New York does not tax military pensions. Active-duty pay is taxed like normal income if you are a resident of the state.

You are not considered a resident and do not pay taxes on military pay if you weren’t living in New York full-time when you entered the military.

Military spouses may be eligible for certain tax benefits under the federal Service members Civil Relief Act, including income tax exemption and an option to use the same state of residency as the service member.

What is the deadline for filing New York state taxes in 2025?

The deadline to file a New York state tax return is April 15, which is also the deadline for federal tax returns. For help estimating your annual income taxes, use AARP’s tax calculator.

New Yorkers who are required to file a state income tax return but need more time should apply for an extension on or before the April 15 deadline. Details on how to get a six-month extension (until Oct. 15) are available on the state taxation department’s website.

Even with an extension, New York filers will still be subject to late tax payment penalties if they don’t pay any tax due by April 15. Filing for an extension by April 15 only eliminates late filing penalties. If you fail to file your tax return by Oct. 15, you will be subject to both penalties in addition to your initial tax payment.

Editor's note: This guide was originally published on Dec. 16, 2022, and has been updated to reflect new information.

Elissa Chudwin covers federal and state policy and writes the podcast Today’s Tips from AARP. She previously worked as a digital producer for The Press Democrat in Santa Rosa, California, and as an editor for Advocate magazines in Dallas.

Rocky Mengle has more than 25 years of experience covering federal and state tax developments for CPAs, tax attorneys, and ordinary taxpayers, including stints at Kiplinger Personal Finance and Wolters Kluwer Tax & Accounting.

Also of Interest:

• 10 Things You Need to Know Before Filing Your 2024 Tax Return
• 9 States With No Income Tax
• How to Get Free Help With Your Taxes