If you live in any of New York City's five boroughs, you pay NYC income tax in addition to New York State income tax. It's based on where you live, not where you work, so people who commute into the city from elsewhere generally don't owe it. Your employer withholds it from your paycheck along with state tax.
This guide explains who owes NYC income tax, how it shows up on your pay stub, and how to estimate it with our calculator. We don't quote city rates here; check the current rates with the New York State Department of Taxation and Finance, which administers the city tax.
Who owes NYC income tax
The city tax applies to residents of Manhattan, Brooklyn, Queens, the Bronx and Staten Island. In general:
- NYC residents owe city tax on their income, wherever they work. A Brooklyn resident working in New Jersey still owes NYC tax.
- Nonresidents who work in NYC, such as commuters from Long Island, Westchester, New Jersey or Connecticut, generally don't owe NYC income tax on those wages. New York City no longer has a commuter tax on wages.
- Part-year residents, people who move into or out of the city during the year, generally owe city tax on income earned while they lived there.
Yonkers also levies its own income tax, and it works differently from the NYC tax. If you live or work in Yonkers, check the state tax department's guidance for how it applies to you.
How the city tax fits with state tax
NYC income tax is layered on top of New York State tax, which for 2026 runs from 3.9% to 10.9%, with most workers in the 5.4% or 5.9% bracket. The state standard deduction is $8,000 for single filers and $16,050 for married couples filing jointly.
The city tax has its own graduated rates, and it's reported on the same return as your New York State tax. You don't file a separate city return. On your paycheck, NYC tax usually appears as its own line, often labeled something like "NYC" or "NYC W/H," next to the state income tax line.
Other New York deductions you'll see
- New York SDI: 0.5% of wages, capped at $0.60 a week ($31.20 a year). Our calculator includes it.
- New York Paid Family Leave: also withheld from pay: 0.432% of wages in 2026, up to $411.91 for the year. Our calculator includes it.
Worked example: what NYC tax adds to a paycheck
Say you're single, earn $92,000 a year and are paid biweekly (26 paychecks). Here's the calculator's estimate with no local tax entered:
| Per biweekly paycheck | Amount |
|---|---|
| Gross pay | $3,538.46 |
| Federal income tax | $438.85 |
| Social Security | $219.38 |
| Medicare | $51.31 |
| New York State income tax | $168.76 |
| New York SDI | $1.20 |
| Take-home before NYC tax | $2,658.96 |
If you live outside the city, that's roughly your paycheck. If you live in the city, NYC tax comes out too. The calculator's local tax box takes a single percentage, so a simple way to size it is to see what each percentage point costs, then multiply by the rate you look up.
| Salary and filing status (biweekly pay) | Each 1 point of local rate, per paycheck | Each 1 point, per year |
|---|---|---|
| $60,000 single | $23.08 | $600 |
| $92,000 single | $35.38 | $920 |
| $150,000 married filing jointly | $57.69 | $1,500 |
For the $92,000 earner, multiply $35.38 by the number of percentage points in the city rate you look up to get a rough per-paycheck figure. These are estimates: the real NYC tax uses graduated brackets on taxable income, so your actual withholding will differ somewhat from a flat percentage on wages. Entering your rate directly in the calculator's local tax box gives the same kind of estimate in one step.
Pre-tax deductions lower the city tax too
A traditional 401(k) contribution reduces the wages New York and our calculator use for state and local tax. With a 6% 401(k) contribution, the same $92,000 earner's state tax estimate drops from $168.76 to $156.65 per paycheck, and each point of local rate costs $33.26 instead of $35.38. See how a 401(k) affects take-home pay for the full picture.
Enter your own salary and the current city rate in the New York paycheck calculator or the main paycheck calculator.
Moving into or out of the city
If you move into or out of New York City, tell your employer right away so city withholding starts or stops on the correct date. If it doesn't, you could end up with too much or too little city tax withheld.
At tax time, you'll generally report city tax only on income from the part of the year you lived in the city. The same idea applies to moving between states; see moving to another state mid-year.
Working remotely for a city employer
Because the city tax depends on residence, a remote worker living outside the city generally doesn't owe it, even if the employer's office is in Manhattan. State tax is a different question: New York has its own rules for remote workers whose employer is based in New York. Our guide to remote work and state taxes covers the general issues, but check with the state tax department for your situation.
Comparing NYC with other places
Living in the city adds a layer most U.S. workers don't have. Compared with a state with no income tax, the difference can be large; our comparison of New York vs Florida take-home pay shows the state-only gap, and city tax widens it further. New Jersey residents who work in Manhattan pay New Jersey tax as residents and New York State tax as nonresident workers, but not NYC tax; the New Jersey paycheck calculator can help you compare.
Frequently Asked Questions
Do I pay NYC income tax if I work in the city but live elsewhere?
Generally no. NYC income tax applies to city residents. Nonresidents who commute in pay New York State tax on their New York wages but not city tax.
Is NYC income tax withheld automatically?
Your employer withholds it if your payroll address is in the city. Check your pay stub for an NYC line, and update your address if you move.
Do I file a separate NYC tax return?
No. NYC income tax is reported on your New York State income tax return.
Does your calculator include NYC tax?
Only if you enter it. Look up the current city rate, enter it as a percentage in the local tax box, and treat the result as an estimate.
Sources
- Tax Foundation: State Individual Income Tax Rates and Brackets, 2026
- IRS Publication 15, Employer's Tax Guide
- IRS: About Form W-4, Employee's Withholding Certificate
Run the numbers for your state
Written and checked against IRS, Social Security Administration and state tax agency publications for the 2026 tax year. General information, not tax, legal or financial advice. Read our editorial policy, calculation methodology and sources.