2026 New York State
Income Tax Brackets & Rates
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.
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 |
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 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 |
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
Example 2: Upstate Police Officer — $72,000 + $14,000 OT, Single
Example 3: Married NYC Couple — $180,000 Combined, MFJ
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.
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).
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 →