New York City Income Tax in 2026: Brackets, Who Pays, and What It Costs

NYC income tax brackets for 2026

The city uses the same taxable income as your New York State return: federal AGI with New York adjustments, minus the NY standard deduction ($8,000 single, $16,050 married filing jointly). The city rates and brackets are unchanged for 2026.

Who pays NYC income tax?

• Full-year residents of Manhattan, Brooklyn, Queens, the Bronx or Staten Island pay on all their income, wherever they earned it.
• Part-year residents pay city tax only on income received while they lived in the city. They figure it on Form IT-360.1.
• Nonresidents who commute into NYC don't pay city income tax on their wages. They still owe New York State tax on NYC-source wages.
• You can be treated as a "statutory resident" if you keep a permanent home in NYC and spend more than 183 days there, even if your legal home is elsewhere.

Worked example: $100,000 salary in Manhattan

Take a single filer with $100,000 in wages in 2026, no pre-tax deductions, and the standard deduction.

Federal: taxable income $83,900 gives $13,170 in income tax. FICA is $7,650. New York State: taxable income is $92,000 ($100,000 − $8,000). At the 2026 rates (3.9%, 4.4%, 5.15%, 5.4% and 5.9%) the state tax is about $4,860. New York City: on the same $92,000, the city tax is $1,813 for the first $50,000 plus 3.876% of $42,000, for a total of about $3,441. Payroll premiums: New York SDI is $0.60 a week ($31.20 a year), and Paid Family Leave is 0.432% of wages, capped at $411.91 in 2026.

Take-home pay: about $70,436 a year, or $2,709 per biweekly check. The same person living in Westchester (outside Yonkers) keeps about $73,877. Living in NYC costs them roughly $3,441 a year in city tax.

Yonkers income tax

Yonkers is the only other New York city with an income tax, and it works differently. Residents pay a surcharge equal to 16.75% of their net New York State income tax. In the $100,000 example, that's 16.75% × $4,860 ≈ $814. Nonresidents who work in Yonkers pay a 0.5% earnings tax on wages earned there and file Form Y-203.

Credits and gotchas that change the number

• NYC credits: the NYC school tax credit, the NYC household credit (for low incomes), the NYC earned income credit and the NYC child and dependent care credit can reduce the bill for many filers.
• Convenience of the employer: if your employer is in New York and you work remotely out of state by choice, New York State may still tax those wages. City tax still depends on where you live.
• Self-employed people in the MTA region may owe the Metropolitan Commuter Transportation Mobility Tax (MCTMT) on net earnings above the threshold.
• Withholding: employers withhold NYC tax only if you tell them you're a resident on Form IT-2104. Update the form when you move in or out.

How NYC tax is filed: on your state return

There is no separate New York City personal income tax return. Full-year city residents figure the city tax on Form IT-201, the same resident return used for New York State, and pay both in one payment. The Department of Taxation and Finance collects the city tax for the city.

Most of the city credits are claimed on the same form. The NYC school tax credit is automatic for most residents. It is a fixed $63 for single, head-of-household and married-filing-separately filers, and $125 for joint filers, if income is $250,000 or less. You confirm city residency and the number of months you lived in the city on the front of the return. Part-year residents get a prorated amount.

Married couple example: $150,000 household in Brooklyn

Joint brackets are wider, so couples reach the 3.876% top rate later. Take a married couple filing jointly with $150,000 of combined wages and the $16,050 New York standard deduction. New York taxable income is $133,950. The city tax works out to about $4,967 before credits. After the $125 school tax credit it is about $4,842, roughly 3.2% of gross pay.

If the same couple lived in Hoboken or Jersey City and commuted to Manhattan, they would owe no city tax. They would pay New York State nonresident tax on their New York wages and claim a New Jersey credit for it. Their total depends on both states' rates, but the city tax would be gone.

Moving into or out of the city mid-year

If you became or stopped being a city resident during the year, you are a part-year resident. You figure city tax only on income received while you lived in the five boroughs, using Form IT-360.1 (Change of City Resident Status), and attach it to your state return.

Example: you move from Manhattan to Westchester on July 1. Wages paid January through June are subject to city tax, and July through December wages are not. Give your employer a new IT-2104 when you move so city withholding stops.

Self-employed in NYC: the unincorporated business tax

Freelancers, sole proprietors and partners who do business in the city may owe the NYC unincorporated business tax (UBT) on top of personal income tax. The rate is 4% of business taxable income allocated to New York City. UBT is filed with the NYC Department of Finance on Form NYC-202 or NYC-202S, not with your state return. People working only as employees are exempt. City residents who pay UBT can claim a partial credit against their personal city income tax on IT-201, which softens the double hit.