New York City is one of the few cities in the U.S. that have a personal income tax. New York City income tax is paid on your New York State income tax return. There are no deductions available, but there are separate credits for New York City income taxes.
Who Has to Pay New York City Income Tax?
Every income-earning individual, estate and trust residing in New York City must pay New York City personal income tax. Taxpayers who have lived in NYC for only part of the year calculate their tax based on the days lived in NYC.
New York City Income Tax Deductions
New York City income tax is based on New York State taxable income, which is gross income less New York State tax deductions. There are no deductions specifically for New York City income tax.
New York City Income Tax Credits
New York City income tax credits reduce the amount of New York City income tax you owe. They will not affect the amount of New York State income tax that you owe. Some credits are refundable, meaning that any leftover credit in excess of your tax liability can be refunded to you. These credits are available to offset New York City income tax:
- NYC Child and Dependent Care Credit: Full-year and part-year New York City residents who paid child care expenses for children under the age of four may be eligible to claim this credit. The credit amount can be as much as 75% of your New York State dependent care credit depending on your income. This is a refundable credit.
- NYC Earned Income Credit: The New York City earned income credit is equal to 5% of your allowable federal earned income credit. Full-year residents and part-year residents of NYC who claimed the federal earned income credit may claim a New York City earned income credit. You may still qualify for a NYC earned income credit, even if you didn’t qualify for the state credit. This credit is refundable.
- NYC Household Credit: If you cannot be claimed as a dependent on another taxpayer’s federal income tax return, you may qualify for the New York City household credit. The credit is available to resident and part-year residents of New York City. The amount of the credit is determined by income and filing status. Credit amounts range from $15 to $30 with an additional $10-$30 for each additional exemption claimed on your federal return.
- NYC School Tax Credit: The New York City school tax credit is available to a New York City resident or part-year resident who cannot be claimed as a dependent on another taxpayer’s federal income tax return. If you are married and filing a joint return and you have income of $250,000 or less you can take a refundable credit of $125. All other taxpayers with income of $250,000 or less can get a refundable credit of $62.50. There is no credit allowed for taxpayers with income of more than $250,000.
New York City Income Tax Rates
New York City has four tax brackets with rates ranging from 2.907% to 3.648%. These rates kick in at different income levels depending on filing status.
More information: See New York City's income tax brackets
Filing Your Return
New York City personal income tax is filed with New York State on your New York State income tax return. Forms can be found on the New York Department of Taxation and Finance's website. You can file your return by mail or efile it. Taxes are due by April 15 and must be paid along with your New York State income tax.