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New York State Tax Profile

Details on major New York taxes that affect individuals

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New York State has a three-legged tax system, meaning that they have all the three major state taxes: an income tax, a sales tax, and property taxes.  The state of New York consistently tops lists for having the highest property taxes, income taxes, and sales taxes in the nation.  In other words, New Yorkers pay a lot of money in taxes.

New York Property Taxes

There is no tax on personal property, like vehicles and jewelry, for individuals in New York.  There are, however, property taxes on real estate that are paid to local governments like counties, cities, and school districts.  The State of New York receives no property tax revenue.  All property tax revenues go directly to localities for schools, police and fire departments, road maintenance and other services.  Property tax rates are determined by localities and depend heavily on the local budget for the year.  New York counties, specifically counties in upstate New York, have some of the highest property taxes in the nation.  However, state law does allow localities to grant property tax exemptions to senior citizens, veterans, and people with documented disabilities.  There is also the STAR exemption, which is an exemption for owners of residential property who use the property as their primary residence. 

More information on New York Property Taxes

New York State Income Tax

New York state income tax rates range from 4% to 8.97%.  Deductions are available for college tuition, contributions to the New York 529 plan and most federal itemized deductions are allowed.  There are also several tax credits available such as credits for child and dependent care costs, college tuition, and New York versions of the earned income credit.  Government pensions are exempt from income tax.

If you live in New York City or Yonkers, your city income taxes are paid on your New York State income tax return.  Tax returns are due April 15th.

More information on New York State income tax and New York City income tax

Other New York Taxes:

Sales Tax: 4.0%.  Local municipalities can add up to 5.00% in their own sales taxes.  Food, prescription drugs, and non-prescription drugs are exempt.  Clothing and footwear costing less than $110 per item or pair is also exempt.

Gasoline Tax: 44.6 cents/gallon for regular and 43.6 cents/gallon for diesel

Cigarette Tax: $4.35/pack of 20.  New York City has an additional tax of $1.50 per pack of 20 for a total cigarette tax in New York City of $5.85.  There are also state taxes on other tobacco products.

 

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