2026 New York State Income Tax Brackets & Rates | Complete Guide
ustakehomepay.com · New York Tax Guide

2026 New York State
Income Tax Brackets & Rates

Updated March 2026 Reflects OBBBA & 2026 NYS rates
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2026 Key Change for New Yorkers: The federal OBBBA raises the SALT deduction cap to $40,400 (up from $10,000), restoring most NY homeowners’ ability to deduct state and local taxes on their federal return. NY State rates themselves are unchanged from 2025. The federal overtime exemption ($12,500) does not reduce NY State taxes — federal only.

3.9% NY Starting Rate (2026)
10.9% NY Top Rate (income >$25M)
$8,000 NY Standard Deduction (Single)
$40,400 New Federal SALT Cap (OBBBA)

12026 NY Tax Brackets — Single Filers

New York uses a progressive marginal tax system with nine brackets. You only pay the higher rate on income within each bracket — not on your entire income. The table below shows every bracket for single filers and married filing separately for tax year 2026.

Taxable Income (Single / MFS) 2026 Marginal Rate Tax on Bracket Floor Marginal Tax Calculation
$0 – $8,500 3.9% $0 3.9% of taxable income
$8,501 – $11,700 4.4% $332 $332 + 4.4% of excess over $8,500
$11,701 – $13,900 4.5% $473 $473 + 4.5% of excess over $11,700
$13,901 – $21,400 5.15% $572 $572 + 5.15% of excess over $13,900
$21,401 – $80,650 5.4% $959 $959 + 5.4% of excess over $21,400
$80,651 – $215,400 5.9% $4,159 $4,159 + 5.9% of excess over $80,650
$215,401 – $1,077,550 6.85% $12,110 $12,110 + 6.85% of excess over $215,400
$1,077,551 – $5,000,000 9.65% $71,063 $71,063 + 9.65% of excess over $1,077,550
$5,000,001 – $25,000,000 10.3% $449,142 $449,142 + 10.3% of excess over $5,000,000
Over $25,000,000 10.9% $2,509,142 $2,509,142 + 10.9% of excess over $25,000,000
How to Use This Table

First subtract your NY standard deduction ($8,000 single) from your gross NY income. The result is your taxable income. Then add the tax from each bracket your income falls across. You do not pay the top rate on all your income — only on the portion above each threshold.

22026 NY Tax Brackets — Married Filing Jointly

Married couples filing jointly in New York receive roughly double the bracket widths of single filers. New York does not have a marriage penalty at most income levels, though very high earners may see some bracket compression at the top rates.

Taxable Income (Married Filing Jointly) 2026 Marginal Rate Tax on Bracket Floor Marginal Tax Calculation
$0 – $17,150 3.9% $0 3.9% of taxable income
$17,151 – $23,600 4.4% $669 $669 + 4.4% of excess over $17,150
$23,601 – $27,900 4.5% $952 $952 + 4.5% of excess over $23,600
$27,901 – $43,000 5.15% $1,146 $1,146 + 5.15% of excess over $27,900
$43,001 – $161,550 5.4% $1,924 $1,924 + 5.4% of excess over $43,000
$161,551 – $323,200 5.9% $8,327 $8,327 + 5.9% of excess over $161,550
$323,201 – $2,155,350 6.85% $17,864 $17,864 + 6.85% of excess over $323,200
$2,155,351 – $5,000,000 9.65% $143,341 $143,341 + 9.65% of excess over $2,155,350
$5,000,001 – $25,000,000 10.3% $417,789 $417,789 + 10.3% of excess over $5,000,000
Over $25,000,000 10.9% $2,477,789 $2,477,789 + 10.9% of excess over $25,000,000

32026 New York City Local Income Tax

If you live in New York City — any of the five boroughs — you pay NYC local income tax on top of your state tax. This is separate from the state return and is calculated on your New York City taxable income, which generally mirrors your state taxable income. Commuters who work in NYC but live outside it do not pay the city tax.

NYC Taxable Income (Single) NYC Local Rate Tax Calculation
$0 – $12,000 3.078% 3.078% of income
$12,001 – $25,000 3.762% $369 + 3.762% of excess over $12,000
$25,001 – $50,000 3.819% $858 + 3.819% of excess over $25,000
Over $50,000 3.876% $1,813 + 3.876% of excess over $50,000
NYC Taxable Income (Married Filing Jointly) NYC Local Rate Tax Calculation
$0 – $21,600 3.078% 3.078% of income
$21,601 – $45,000 3.762% $665 + 3.762% of excess over $21,600
$45,001 – $90,000 3.819% $1,545 + 3.819% of excess over $45,000
Over $90,000 3.876% $3,264 + 3.876% of excess over $90,000
Yonkers Residents — Different Rate

Yonkers has its own local income tax surcharge: 1.95975% of your New York State tax liability for residents, and 0.50% for non-residents who work in Yonkers. This is separate from the NYC local tax and much lower. If you live in Yonkers, you pay state + Yonkers surcharge, not the NYC rate.

42026 NY & Federal Deductions — What Changed

New York State and federal deductions are completely separate. You claim a federal deduction on your Form 1040 and a NY state deduction on your IT-201. The amounts differ, and choosing to itemize federally does not require you to itemize for NY — you can mix and match.

Deduction Type Federal 2026 (OBBBA) New York State 2026 Changed from 2025?
Standard — Single $16,100 $8,000 Federal increased (OBBBA)
Standard — MFJ $32,200 $16,050 Federal increased (OBBBA)
Standard — HOH $24,150 $11,200 Federal increased (OBBBA)
Senior Bonus (65+) $6,000 additional Not applicable New for 2026 (OBBBA)
SALT Cap (federal) $40,400 No cap (state return) Up from $10,000 (OBBBA)
OT Exemption (federal) $12,500 exempt from federal tax Fully taxable by NY New for 2026 — federal only
The SALT Cap Change — What It Means for NY Homeowners

Before the OBBBA, the federal SALT deduction was capped at $10,000 — a major blow to New Yorkers paying high property taxes and state income taxes. The new $40,400 cap means most middle and upper-middle income NY homeowners can now deduct nearly all their combined state income tax plus property tax on their federal return, significantly reducing their federal tax bill. The cap phases down for single filers with MAGI above $505,050.

5Worked Examples — Your 2026 NY Tax Bill

Here are three detailed calculations showing exactly how New York State income tax is computed for different income levels in 2026. These assume the standard deduction (no itemizing) and no pre-tax deductions.

Example 1: NYC Nurse — $85,000 Salary, Single

NYC Registered Nurse · Single · $85,000 gross · No OT
Gross Income$85,000
NY Standard Deduction (single)− $8,000
NY Taxable Income$77,000
NY State Tax (marginal calc)− $3,937
NYC Local Tax (~3.85% effective)− $2,958
Federal Income Tax (after $16,100 std ded)− $12,018
Social Security (6.2%)− $5,270
Medicare (1.45%)− $1,233
Estimated Annual Take-Home ~$59,584

Example 2: Upstate Police Officer — $72,000 + $14,000 OT, Single

Upstate NY Police Officer · Single · $72,000 base + $14,000 OT
Total Gross Income$86,000
Federal OT Exemption (OBBBA — $12,500)Federal only ✓
NY taxes ALL $86,000 (OT not exempt)Full NY tax
NY Taxable Income ($86k − $8k std ded)$78,000
NY State Tax− $3,938
Federal Tax (with $12,500 OT exempt)− $10,114
Federal Tax Saved via OBBBA OT Exemption+ $2,750 saved
FICA (SS + Medicare)− $6,579
Estimated Annual Take-Home ~$65,369

Example 3: Married NYC Couple — $180,000 Combined, MFJ

NYC Married Couple · MFJ · $180,000 combined gross
Combined Gross Income$180,000
NY Standard Deduction (MFJ)− $16,050
NY Taxable Income$163,950
NY State Tax− $8,518
NYC Local Tax (~3.876% on excess)− $6,610
Federal Tax (after $32,200 std ded)− $25,620
FICA (both spouses, combined)− $13,770
SALT Benefit (new $40,400 cap)Deducting ~$15,128 state/local taxes federally
Estimated Annual Take-Home ~$125,482

6New York vs. Other States — 2026 Tax Comparison

How does New York’s 2026 tax burden stack up against neighboring and popular destination states? The comparison below uses a $100,000 single filer as the baseline.

New York (NYC)
~14.5%
Combined effective rate at $100k (NYC)
Top state rate: 10.9%
NYC local: up to 3.876%
SALT deduction now $40,400
$8,000 NY standard deduction
New Jersey
~6.8%
Effective rate at $100k
Top rate: 10.75% (above $1M)
No local income tax
High property taxes offset SALT benefit
$1,000 personal exemption (single)
Connecticut
~5.5%
Effective rate at $100k
Top rate: 6.99%
No local income tax
Lower overall burden than NY
Exempts some pension income
Florida
0%
State income tax rate
No state income tax
No local income tax
Higher property taxes in some areas
Popular NY exodus destination
The NYC “Convenience of the Employer” Rule

If you work remotely for a NYC employer while living in New Jersey or Connecticut, New York State may still tax your income under the “convenience of the employer” rule. Unless your employer requires you to work outside NY, NY can claim those wages as NY-sourced income. This is a major — and often overlooked — tax trap for remote workers who moved out of NY.

7OBBBA Impact on New York Filers — 2026

The One Big Beautiful Bill Act (OBBBA) is a federal law — it changes your federal tax return (Form 1040), not your New York State return (IT-201). Here’s a clear breakdown of what applies in NY and what doesn’t:

OBBBA Provision Affects Federal Tax? Affects NY State Tax? Impact for NY Filers
Overtime exemption ($12,500) ✅ Yes — reduces federal taxable income ❌ No — NY taxes all OT normally Federal savings only; up to $2,750/yr
Tips exemption ($25,000) ✅ Yes — federal only ❌ No — NY taxes tips fully Federal savings for tipped workers
SALT cap raised to $40,400 ✅ Yes — larger federal deduction N/A (NY has no SALT cap) Big win for NY homeowners who itemize federally
Higher federal standard deduction ✅ Yes ($16,100 single) ❌ No — NY std ded unchanged ($8,000) Lower federal taxable income for all filers
$6,000 senior deduction (65+) ✅ Yes — federal ❌ No — NY does not conform Federal only; NY seniors see no state benefit
NY State rates & brackets N/A Unchanged from 2025 No change — same NY rates apply

8How to Reduce Your New York State Tax Bill in 2026

New York State tax is calculated independently from your federal return. These strategies specifically reduce your NY tax liability:

1. Maximize NY-Deductible Retirement Contributions

Contributions to a 401(k), 403(b), 457(b), or traditional IRA reduce your NY adjusted gross income dollar-for-dollar, just as they do federally. New York also fully exempts distributions from government pensions (NYSLRS, NYCRS) from state tax — a major benefit for public employees. Maximize these before considering other strategies.

2. NY 529 College Savings Deduction

New York residents can deduct up to $5,000 ($10,000 MFJ) in contributions to a New York 529 College Savings Plan per year from their state taxable income. This is a NY-specific deduction that doesn’t exist federally — pure state tax savings for families with college-bound children.

3. Itemize on Your NY Return Even If You Take the Federal Standard

New York allows you to itemize on your state return even if you take the standard deduction federally. With the federal standard deduction now at $16,100 (OBBBA), many filers will take the federal standard but could still benefit from itemizing for NY — particularly homeowners with large property tax bills and mortgage interest.

4. NYC Resident Credit / Part-Year Resident Rules

If you moved into or out of NYC during 2026, you pay the city tax only on income earned while a city resident. Keeping precise records of your move date and income allocation can significantly reduce your NYC tax liability for the year of the move.

5. Harvest Investment Losses Against NY Capital Gains

New York taxes capital gains as ordinary income — the same rates as your salary. Tax-loss harvesting (selling losing investments to offset gains) reduces both your federal and NY state tax simultaneously. New York follows federal capital gain/loss netting rules, so every $1,000 in losses harvested saves you up to $109 in NY state tax alone (at the 10.9% top rate).

NY Earned Income Credit — Often Missed

New York offers a state Earned Income Credit equal to 30% of the federal EITC. If you qualify for the federal Earned Income Tax Credit, you almost certainly qualify for the NY state version too. Many filers leave this on the table. For a worker with two children earning $45,000, this credit can be worth $1,800+ against your NY state tax bill.

Calculate Your 2026 NY Take-Home Pay

Our free calculator factors in all 2026 NY brackets, NYC local tax, OBBBA changes, FICA, and your specific deductions.

Try the 2026 NY Calculator →

9Frequently Asked Questions

What are the 2026 New York State income tax rates?+
New York State income tax rates for 2026 range from 3.9% to 10.9% across ten brackets. Single filers start at 3.9% on income up to $8,500, then progress through 4.4%, 4.5%, 5.15%, 5.4%, 5.9%, 6.85%, 9.65%, 10.3%, and 10.9% on income over $25 million. The rates are identical to 2025 — no bracket changes occurred for 2026.
Does the OBBBA affect New York State taxes?+
The OBBBA is a federal law and does not change New York State income tax rates or brackets. However, it indirectly benefits NY filers in two ways: (1) the raised federal SALT cap to $40,400 allows NY homeowners who itemize federally to deduct far more of their state and local taxes, and (2) the higher federal standard deduction reduces your federal taxable income. Your NY state return is calculated separately under NY rules — the OBBBA overtime and tips exemptions do not apply to NY taxes.
What is the New York State standard deduction for 2026?+
The 2026 New York State standard deduction is $8,000 for single filers and married filing separately, $16,050 for married filing jointly, and $11,200 for head of household. These are significantly lower than the federal standard deductions under the OBBBA ($16,100 single / $32,200 MFJ). NY’s standard deduction is applied against your NY adjusted gross income to arrive at NY taxable income.
Is overtime tax-free in New York in 2026?+
No — New York State fully taxes overtime wages at normal income tax rates. The OBBBA overtime exemption (first $12,500 tax-free) applies only to your federal income tax. So a NY worker who saves $2,750 in federal tax on $12,500 of overtime still pays full NY state income tax on that same overtime income. The combined federal + state picture still shows net savings — just not as much as the federal number alone suggests.
Do I pay NYC tax if I work in the city but live in New Jersey?+
No — NYC local income tax applies only to people who are NYC residents (live in one of the five boroughs). If you live in New Jersey and commute into the city, you do not pay NYC local tax. However, you do pay New York State income tax on wages earned in New York. New Jersey also taxes your income but allows a credit for taxes paid to other states, so you generally won’t be fully double-taxed — but the calculation is complex and worth reviewing with a tax professional.
What changed in New York taxes from 2025 to 2026?+
New York State tax rates and brackets are unchanged from 2025 to 2026. The key 2026 changes affecting NY filers are all federal: the OBBBA raised the federal SALT deduction cap from $10,000 to $40,400, significantly increased the federal standard deduction, added a new $6,000 senior deduction for filers 65+, and created the new overtime and tips income exemptions. None of these changes affect your NY state tax calculation — only your federal Form 1040.
How much is the NYC local income tax on a $75,000 salary?+
On a $75,000 salary as a single NYC resident in 2026, your NYC local income tax would be approximately $2,707. This is calculated on your NYC taxable income (after the NY standard deduction of $8,000), which is $67,000. The city rate on amounts over $50,000 is 3.876%, so: $1,813 (tax on first $50,000) + ($17,000 × 3.876%) = $1,813 + $659 = $2,472 city tax. Add your NY state tax of approximately $3,200, and your combined state + city burden is around $5,700 on $75,000 — an effective combined rate of about 7.6%.
Disclaimer: This guide is for educational and estimation purposes only. Tax brackets, rates, and deduction amounts reflect the best available information for tax year 2026 as of March 2026. New York State tax law and federal law (OBBBA) are subject to regulatory guidance, IRS clarification, and legislative amendment. All worked examples are approximations. Do not use this page as your sole basis for filing a tax return — consult a licensed CPA or tax attorney for official advice on your specific situation. ustakehomepay.com is not a tax advisory service.
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