New York City Local Tax Guide (2026)
NYC residents pay city income tax on top of New York State tax. The rate schedule has not changed since tax year 2017, so the same brackets apply for 2025 and 2026. Nonresidents are not liable for the NYC personal income tax.
Verified 2026-08-21 against official city / state sources. Where a 2026 rate could not be individually re-verified, the verified year and source are stated instead of a guess.
Quick answer (New York City, 2026)
Yes — New York City is the only major U.S. city with its own progressive resident personal income tax. For 2025, resident rates run from 3.078% to 3.876%. Nonresidents who work in the city do not owe the NYC tax. Source: New York State Dept. of Taxation & Finance — personal income tax rates & NYC tax rate schedule (retrieved 2026-08-21).
Rate schedule
Single / married filing separately
| 3.078% | $0 – $12,000 |
| 3.762% | $12,001 – $25,000 |
| 3.819% | $25,001 – $50,000 |
| 3.876% | $50,001 and over |
Married filing jointly / qualifying surviving spouse
| 3.078% | $0 – $21,600 |
| 3.762% | $21,601 – $45,000 |
| 3.819% | $45,001 – $90,000 |
| 3.876% | $90,001 and over |
Head of household
| 3.078% | $0 – $14,400 |
| 3.762% | $14,401 – $30,000 |
| 3.819% | $30,001 – $60,000 |
| 3.876% | $60,001 and over |
What you actually pay
The NYC personal income tax applies only to residents of the five boroughs (Manhattan, Brooklyn, Queens, the Bronx, Staten Island). It is computed on New York taxable income, after the standard or itemized deduction.
Nonresidents who commute into NYC do not owe the NYC tax. The old NYC nonresident earnings tax was repealed decades ago; today only residents pay.
NYC is the only major U.S. city with its own progressive income tax. Its brackets are unchanged since tax year 2017, so the 2025 schedule (3.078%–3.876%) also applies to 2026 unless the State enacts a change.
NYC withholding appears as a separate "NYC" line on the W-2 (Box 19) and is reconciled on the New York State IT-201 return.
Part-year residents pay the NYC tax only for the months they were residents. The city portion is prorated to resident months on the IT-201, so moving into or out of the city mid-year changes the city liability even though the state filing remains one return.
New Jersey and Connecticut residents who work in the city do not owe the NYC tax. They pay New York State nonresident tax on their New York-source wages, and their home state generally grants a credit for tax paid to New York.
NYC and New York State income tax are state and local taxes for federal purposes, so they count toward the SALT deduction — capped at $40,400 for married-joint filers in 2026. Filers already above the cap get no extra federal benefit from the city layer.
Because the city tax stacks on top of the New York State schedule, a high earner faces a combined State + NYC marginal rate among the highest in the country; the city layer alone adds up to 3.876 percentage points at the top.
This guide summarizes structural facts for planning. It is not a substitute for the official New York tax code or a licensed preparer.
Frequently asked questions
Related state guide
Not tax, legal, or financial advice
FiscTalk provides general educational information from public sources. Tax outcomes depend on your full facts, filing history, and jurisdiction-specific rules that change yearly. Before filing or making decisions, consult a licensed CPA, EA, or attorney. FiscTalk is not a fiduciary and is not affiliated with the IRS or any state agency.
Sources & methodology
- New York State Dept. of Taxation & Finance — personal income tax rates & NYC tax rate schedule — New York State Department of Taxation and Finance
- NYC Comptroller — The NYC Personal Income Tax Before and After the Pandemic (rate table, Nov 2025) — New York City Comptroller