🇺🇸 New York Income Tax — 2026 UPDATE

New York Income Tax Rates & Brackets (Tax Year 2025 — Filed in 2026)

⚠️Informational only — not legal or tax advice.

Tax year covered: 2025 (returns filed in 2026)
Applies to: Income earned January 1 – December 31, 2025
Returns filed: January – April 2026
Last verified: February 12, 2026

New York State Income Tax

Table of Contents

Click any item below to jump to the relevant section

Quick Reference

Does New York have income tax? Yes
Tax structure: Progressive
Tax rates: 4% to 10.9%
Standard deduction (Single): $8,000
Standard deduction (Married): $16,050
Local income tax: Yes – New York City and Yonkers
Official source: https://www.tax.ny.gov

Key Takeaways

  • Residents: New York residents pay New York income tax on income from all sources
  • Non-residents: Non-residents pay New York income tax only on New York-source income
  • Tax rates: Progressive system with rates ranging from 4% to 10.9% depending on income and filing status
  • Local income tax: New York City residents pay an additional local income tax; Yonkers residents pay a resident income tax surcharge; Yonkers nonresidents may owe a nonresident earnings tax
  • Reciprocity: New York does not have reciprocal agreements with other states
  • Primary forms: Form IT-201 (residents), Form IT-203 (non-residents and part-year residents)
  • Convenience of employer rule: New York applies a “convenience of the employer” rule for remote workers

Quick Questions About New York Income Tax

What is the New York income tax rate for 2025?

New York has a progressive income tax with rates ranging from 4% to 10.9%. The actual rate depends on your taxable income and filing status. For Tax Year 2025, there are nine tax brackets.

Does New York have state income tax?

Yes. New York State imposes a personal income tax on residents’ worldwide income and on non-residents’ income from New York sources.

What are the income tax brackets in New York?

For Tax Year 2025, New York has nine tax brackets for single filers ranging from 4% to 10.9%, with the highest rate applying to taxable income over $25 million. See complete bracket tables below.

Is Social Security taxed in New York?

No. New York does not tax Social Security benefits.

Does New York tax retirement income?

New York partially exempts pension and annuity income. Taxpayers can exclude up to $20,000 of pension and annuity income if they meet certain requirements.

Do I need to file a New York income tax return?

New York State residents must file if they are required to file a federal return, or if their federal adjusted gross income plus New York additions exceeds $4,000 ($3,100 if single and claimed as a dependent on another taxpayer’s return).

Source: https://www.tax.ny.gov/pit/

New York Income Tax Rates and Brackets (2026)

The following tax rates and brackets apply to income earned in 2025, reported on tax returns filed in 2026.

New York Income Tax Rates and Snapshot (2026)
The following rates apply to income earned in 2025 and reported on 2026 New York tax returns.
Tax Attribute Amount/Status
Lowest Tax Rate 4%
Highest Tax Rate 10.9%
Tax Structure Progressive
Number of Brackets 9 brackets
State Income Tax Yes
Local Income Tax Yes (NYC and Yonkers)
Standard Deduction (Single) $8,000
Standard Deduction (Married Filing Jointly) $16,050
Personal Exemption $1,000 per dependent

Source: https://www.tax.ny.gov/pit/file/tax-tables/it201i-2025.htm

New York Income Tax Brackets 2026

IMPORTANT: For taxable income of $107,650 or less, New York provides tax tables to determine exact tax owed. For taxable income above $107,650, taxpayers must use the tax computation method provided in Form IT-201 instructions.

New York State Tax Rate Schedule (Taxable Income Over $107,650)
Single Filers — 2026 Filing Season
Taxable Income Tax Rate Tax Calculation
$0 – $8,500 4% 4% of taxable income
$8,500 – $11,700 4.5% $340 + 4.5% of excess over $8,500
$11,700 – $13,900 5.25% $484 + 5.25% of excess over $11,700
$13,900 – $80,650 5.5% $600 + 5.5% of excess over $13,900
$80,650 – $215,400 6% $4,271 + 6% of excess over $80,650
$215,400 – $1,077,550 6.85% $12,356 + 6.85% of excess over $215,400
$1,077,550 – $5,000,000 9.65% $71,411 + 9.65% of excess over $1,077,550
$5,000,000 – $25,000,000 10.3% $449,948 + 10.3% of excess over $5,000,000
Over $25,000,000 10.9% $2,509,948 + 10.9% of excess over $25,000,000
New York State Tax Rate Schedule (Taxable Income Over $107,650)
Married Filing Jointly — 2026 Filing Season
Taxable Income Tax Rate Tax Calculation
$0 – $17,150 4% 4% of taxable income
$17,150 – $23,600 4.5% $686 + 4.5% of excess over $17,150
$23,600 – $27,900 5.25% $976 + 5.25% of excess over $23,600
$27,900 – $161,550 5.5% $1,202 + 5.5% of excess over $27,900
$161,550 – $323,200 6% $8,553 + 6% of excess over $161,550
$323,200 – $2,155,350 6.85% $18,252 + 6.85% of excess over $323,200
$2,155,350 – $5,000,000 9.65% $143,749 + 9.65% of excess over $2,155,350
$5,000,000 – $25,000,000 10.3% $418,298 + 10.3% of excess over $5,000,000
Over $25,000,000 10.9% $2,478,298 + 10.9% of excess over $25,000,000
New York State Tax Rate Schedule (Taxable Income Over $107,650)
Married Filing Separately — 2026 Filing Season
Taxable Income Tax Rate Tax Calculation
$0 – $8,500 4% 4% of taxable income
$8,500 – $11,700 4.5% $340 + 4.5% of excess over $8,500
$11,700 – $13,900 5.25% $484 + 5.25% of excess over $11,700
$13,900 – $80,650 5.5% $600 + 5.5% of excess over $13,900
$80,650 – $161,550 6% $4,271 + 6% of excess over $80,650
$161,550 – $1,077,550 6.85% $9,125 + 6.85% of excess over $161,550
$1,077,550 – $5,000,000 9.65% $71,871 + 9.65% of excess over $1,077,550
$5,000,000 – $25,000,000 10.3% $450,408 + 10.3% of excess over $5,000,000
Over $25,000,000 10.9% $2,510,408 + 10.9% of excess over $25,000,000
New York State Tax Rate Schedule (Taxable Income Over $107,650)
Head of Household — 2026 Filing Season
Taxable Income Tax Rate Tax Calculation
$0 – $12,800 4% 4% of taxable income
$12,800 – $17,650 4.5% $512 + 4.5% of excess over $12,800
$17,650 – $20,900 5.25% $730 + 5.25% of excess over $17,650
$20,900 – $107,650 5.5% $901 + 5.5% of excess over $20,900
$107,650 – $269,300 6% $5,672 + 6% of excess over $107,650
$269,300 – $1,616,450 6.85% $15,371 + 6.85% of excess over $269,300
$1,616,450 – $5,000,000 9.65% $107,660 + 9.65% of excess over $1,616,450
$5,000,000 – $25,000,000 10.3% $434,303 + 10.3% of excess over $5,000,000
Over $25,000,000 10.9% $2,494,303 + 10.9% of excess over $25,000,000

Source: https://www.tax.ny.gov/pit/file/tax-tables/it201i-2025.htm

Statutory Authority

State income tax in New York is authorized under the following legal framework:

Constitutional Authority:

New York State Constitution, Article XVI, Section 3 authorizes the state legislature to impose taxes on personal income.

Statutory Authority:

Administrative Regulations:

  • Title 20, New York Codes, Rules and Regulations (NYCRR) Part 100 et seq.
  • Personal Income Tax Regulations

Legislative History:

  • Original enactment: 1919
  • Present federal conformity system: 1960
  • Current bracket structure: Various amendments through 2025
  • Recent rate reductions effective for Tax Year 2025 enacted under Chapter 59 of the Laws of 2025

This page compiles information directly from these statutory and regulatory authorities as implemented by the New York State Department of Taxation and Finance.

Source: https://www.nysenate.gov/legislation/laws/TAX and https://www.tax.ny.gov

Who Must File New York Income Tax

Residents

New York State residents must file a state income tax return if:

  • They are required to file a federal income tax return, OR
  • Their federal adjusted gross income plus New York additions exceeds:
    • $4,000 for most taxpayers
    • $3,100 for single filers who can be claimed as a dependent on another taxpayer’s federal return

Source: https://www.tax.ny.gov/pit/file/do_i_need_to_file.htm

Part-Year Residents

Part-year residents must file Form IT-203 if they were a New York State resident for part of the year and had income from any source during their period of residency.

Non-Residents

Non-residents must file Form IT-203 if they had income from New York sources during the tax year, including:

  • Wages earned while physically working in New York State
  • Business income from New York operations
  • Rental income from New York property
  • Income from a partnership, S corporation, estate, or trust doing business in New York
  • Gains from the sale of real property located in New York

Important: Under New York’s “convenience of the employer” rule, a non-resident working remotely for a New York employer may owe New York tax on that income even if the work is performed outside New York, unless the employee’s home office qualifies as a “bona fide employer office.”

Source: https://www.tax.ny.gov/pit/file/nonresident-faqs.htm

What Income Is Taxable in New York

Fully Taxable Income

For New York residents, all income from all sources is subject to New York income tax, including:

  • Wages and salaries
  • Self-employment income
  • Business income
  • Investment income (interest, dividends, capital gains)
  • Retirement account distributions (401(k), IRA, pensions)
  • Rental income
  • Unemployment compensation
  • Alimony received (if taxable for federal purposes)
  • Partnership and S corporation income

Source: https://www.tax.ny.gov/pit/file/pit_definitions.htm

Social Security Benefits

New York does not tax Social Security benefits. Taxpayers should subtract any Social Security benefits included in federal adjusted gross income when calculating New York adjusted gross income.

Source: https://www.tax.ny.gov/pdf/2025/inc/it201i_2025.pdf

Pension and Annuity Income

New York allows an exclusion for pension and annuity income up to $20,000 per year for taxpayers who meet specific requirements:

Eligibility requirements:

  • Must be 59½ or older, OR
  • Qualify for the exclusion under the disability income exclusion rules

What qualifies:

  • Private pension and annuity income from an employer’s qualified plan
  • Government pension income (federal, state, local)
  • IRA distributions
  • 401(k), 403(b), and 457 plan distributions

$20,000 limitation: The combined total of pension/annuity exclusion and disability income exclusion cannot exceed $20,000.

Source: https://www.tax.ny.gov/pdf/2025/inc/it201i_2025.pdf

Military Retirement Pay

New York fully exempts military retirement pay from state income tax. This includes:

  • Military pensions paid by the U.S. Department of Defense
  • Pensions for service in the Armed Forces
  • Survivor Benefit Plan (SBP) payments to surviving spouses

Source: https://www.tax.ny.gov/data/stats/ter/fiscal-year26/personal-income-tax.htm

Moving Expenses

For Tax Years 2018-2025, federal law suspended the moving expense deduction for most taxpayers. However, New York allows a subtraction modification to continue the deduction for:

  • All taxpayers who meet the pre-2018 federal requirements for the moving expense deduction
  • Not limited to military members (unlike federal law)

Source: https://www.tax.ny.gov/data/stats/ter/fiscal-year26/personal-income-tax.htm

Standard Deduction and Exemptions

Standard Deduction (Tax Year 2025)

New York’s standard deduction amounts for Tax Year 2025 are:

  • Single (claimed as dependent): $3,100
  • Single (not claimed as dependent): $8,000
  • Married Filing Jointly: $16,050
  • Married Filing Separately: $8,000
  • Head of Household: $11,200
  • Qualifying Surviving Spouse: $16,050

Source: https://www.tax.ny.gov/pit/file/standard_deductions.htm

Personal Exemptions

New York allows a dependent exemption of $1,000 for each dependent claimed on the taxpayer’s federal return.

How it works:

  • Multiply the number of dependents by $1,000
  • Subtract this amount from New York adjusted gross income after applying the standard deduction or itemized deductions
  • This reduces taxable income before applying tax rates

Source: https://www.tax.ny.gov/pdf/2025/inc/it201x_2025_fill_in.pdf

Itemized Deductions

New York itemized deductions are calculated using federal rules as they existed prior to the Tax Cuts and Jobs Act of 2017. This means New York allows certain deductions that were eliminated or limited for federal purposes, including:

  • Job expenses and certain miscellaneous deductions subject to the 2% of federal AGI limitation
  • Full home mortgage and home equity interest deductions (not subject to federal limits)
  • Casualty and theft losses (not limited to federally declared disasters)

Taxpayers who itemize must file Form IT-196 (New York Resident, Nonresident, and Part-Year Resident Itemized Deductions).

Source: https://www.tax.ny.gov/pit/file/itemized-deductions-2025.htm

New York Income Tax Credits

New York offers several tax credits to reduce tax liability. Below are the major credits available for Tax Year 2025:

1. New York State Earned Income Tax Credit (EITC)

The New York State EITC is a refundable credit for low- to moderate-income working taxpayers.

Amount: 30% of the federal Earned Income Credit

Eligibility:

  • Must qualify for the federal Earned Income Credit
  • Must be a New York State resident for the entire tax year
  • Cannot be claimed as a dependent on another taxpayer’s return

How to claim: File Form IT-215 (Claim for Earned Income Credit)

Source: https://www.tax.ny.gov/pit/credits/income_tax_credits.htm

2. New York City Earned Income Tax Credit

Amount: 5% of the federal Earned Income Credit

Eligibility:

  • Must be a New York City resident
  • Must qualify for the New York State EITC
  • Automatically calculated if you claim the state EITC and are a NYC resident

Source: https://www.tax.ny.gov/pit/credits/income_tax_credits.htm

3. Empire State Child Credit

For families with qualifying children who are unable to claim the federal Child Tax Credit due to immigration status.

Amount: Up to $330 per qualifying child

Eligibility:

  • Child must be under age 17
  • Child must be a New York State resident
  • Family must meet income requirements
  • Cannot claim federal Child Tax Credit for the same child

Source: https://www.tax.ny.gov/pit/credits/income_tax_credits.htm

4. College Tuition Credit

New York offers both a tax credit and an itemized deduction option for college tuition expenses.

Tax Credit Amount:

  • Expenses under $5,000: Credit of up to $200
  • Expenses of $5,000 or more: Credit of 4% of expenses (no maximum)

Itemized Deduction: If expenses are $5,000 or more, taxpayers can choose to itemize the deduction instead of taking the credit (must determine which provides greater tax benefit)

Eligibility:

  • Must be a New York State full-year resident
  • Taxpayer, spouse, or dependent must be an undergraduate student
  • Student must attend an eligible institution of higher education
  • Only tuition expenses qualify (not room, board, books, or fees)

How to claim: File Form IT-272 (Claim for College Tuition Credit or Itemized Deduction)

Source: https://www.tax.ny.gov/pit/credits/college_tuition_credit.htm

5. Child and Dependent Care Credit

New York offers a credit for child and dependent care expenses.

Amount: Percentage of federal credit based on New York adjusted gross income

Eligibility:

  • Must claim the federal child and dependent care credit
  • Care must be for a qualifying individual to allow you to work
  • Must be a New York State resident

How to claim: File Form IT-216 (Claim for Child and Dependent Care Credit)

Source: https://www.tax.ny.gov/pit/credits/income_tax_credits.htm

6. Real Property Tax Credit

Resident homeowners and renters may qualify for a credit based on real property taxes paid.

Maximum Credit:

  • $375 for taxpayers aged 65 or older
  • $75 for taxpayers under age 65

Eligibility:

  • Household gross income of $18,000 or less
  • Must be a New York State resident for the entire tax year
  • Property must be used as primary residence
  • Subject to additional property value limitations

How to claim: File Form IT-214 (Claim for Real Property Tax Credit)

Source: https://www.tax.ny.gov/data/stats/ter/fiscal-year26/personal-income-tax.htm

7. Volunteer Firefighters’ and Ambulance Workers’ Credit

Amount: $200 per qualifying taxpayer ($400 for married filing jointly if both qualify)

Eligibility:

  • Must be an active volunteer firefighter or volunteer ambulance worker for the entire tax year
  • Cannot receive a real property tax exemption relating to such service

How to claim: File Form IT-245 (Claim for Volunteer Firefighters’ and Ambulance Workers’ Credit)

Source: https://www.tax.ny.gov/help/taxpayer-education/financial/4-tax-credits-8.htm

8. New York City School Tax Credit

Resident taxpayers who lived in New York City (includes Bronx, Brooklyn, Manhattan, Queens, and Staten Island) and had a New York adjusted gross income of $250,000 or less may qualify for this credit.

Amount: Varies based on filing status and income

Eligibility:

  • Must be a New York City resident
  • New York adjusted gross income of $250,000 or less
  • Automatically calculated on Form IT-201 for qualified taxpayers

Source: https://www.tax.ny.gov/pdf/2025/inc/it201i_2025.pdf

9. New York State Household Credit

Low-income residents may qualify for a household credit based on the number of household exemptions.

Eligibility:

  • Based on number of household exemptions and New York adjusted gross income
  • Automatically calculated if eligible when filing Form IT-201

Source: https://www.tax.ny.gov/pdf/2025/inc/it201i_2025.pdf

Filing Deadlines

Regular Deadline

April 15, 2026 for Tax Year 2025 returns

If April 15 falls on a weekend or legal holiday, the deadline is the next business day.

Extension Deadline

October 15, 2026 (six-month automatic extension)

To receive an extension:

  • File Form IT-370 (Application for Automatic Six-Month Extension of Time to File for Individuals) by April 15, 2026
  • Pay any estimated tax owed by April 15, 2026
  • An extension of time to file is NOT an extension of time to pay

Federal extension: If you file a federal extension (IRS Form 4868), you do not need to file a separate New York extension form

Source: https://www.tax.ny.gov/pit/file/ext.htm

Estimated Tax Payments

If you have income not subject to withholding (self-employment, investment income, etc.), quarterly estimated payments are due:

  • Q1 2025: April 15, 2025
  • Q2 2025: June 15, 2025
  • Q3 2025: September 15, 2025
  • Q4 2025: January 15, 2026

Form: IT-2105 (Estimated Tax Payment Voucher for Individuals)

Source: https://www.tax.ny.gov/pit/estimated_tax/

Filing Options for New York Income Tax

Online Filing (E-File)

Electronic filing is available through:

  • New York State Official Online Portal: https://www.tax.ny.gov/pit/efile/
  • IRS-Approved Tax Software: TurboTax, H&R Block, TaxAct, and other software that supports New York returns
  • Free File Options: Free e-file is available for taxpayers with federal adjusted gross income (FAGI) of $89,000 or less

Benefits of e-filing:

  • Faster processing
  • Faster refunds
  • Confirmation of receipt
  • Reduced errors

Source: https://www.tax.ny.gov/pit/efile/

Paper Filing

Paper forms are available for download and mail filing:

Primary Forms:

  • Form IT-201 (Resident Income Tax Return)
  • Form IT-203 (Nonresident and Part-Year Resident Income Tax Return)

Download Location: https://www.tax.ny.gov/forms/

Mailing Addresses:

If you owe tax or are sending a payment: NYS PROCESSING CENTER
PO BOX 4125
BINGHAMTON NY 13902-4125

If you are due a refund or owe no tax: NYS PROCESSING CENTER
PO BOX 61000
ALBANY NY 12261-0001

For overnight delivery services: BINGHAMTON NY TAX DEPARTMENT
PO BOX 4125
BINGHAMTON NY 13902-4125

Source: https://www.tax.ny.gov/forms/html-instructions/2025/it/it201i-2025.htm

Tax Preparer Options

Licensed tax professionals familiar with New York tax law include:

  • CPA (Certified Public Accountant)
  • Enrolled Agent (EA)
  • Tax Attorney
  • Registered Tax Return Preparers

Important: New York requires most paid tax return preparers to register with the New York State Tax Department and obtain a New York Tax Preparer Registration Identification Number (NYTPRIN).

Source: https://www.tax.ny.gov/tp/reg/tpreg.htm

Important: New York requires most paid tax return preparers to register with the New York State Tax Department and obtain a New York Tax Preparer Registration Identification Number (NYTPRIN).

Source: https://www.tax.ny.gov/tp/reg/tpreg.htm

Local Income Taxes

New York State allows certain local jurisdictions to levy income taxes. Two jurisdictions currently impose local income taxes: New York City and the City of Yonkers.

New York City Income Tax

Applies to: New York City residents (Bronx, Brooklyn, Manhattan, Queens, and Staten Island)

Tax rates (Tax Year 2025):

New York City income tax is progressive with rates ranging from 3.078% to 3.876% based on income and filing status.

How it works:

  • NYC residents report city income tax on Form IT-201
  • Tax is calculated based on New York adjusted gross income
  • Nonresidents who work in NYC do NOT pay NYC income tax (only residents)

Part-year residents:

  • If you moved into or out of NYC during 2025, you must complete Form IT-360.1 (Change of City Resident Status)

Source: https://www.tax.ny.gov/pit/file/nyc_yonkers_residents.htm

Yonkers Income Tax

Yonkers has TWO separate income taxes:

A) Yonkers Resident Income Tax Surcharge

Applies to: Yonkers residents

Rate: 16.75% of the taxpayer’s New York State income tax (NOT 16.75% of income)

How it works:

  • Yonkers residents report the surcharge on Form IT-201
  • Calculated as a percentage of their New York State tax liability
  • Automatically computed when completing Form IT-201

Example: If your New York State tax is $5,000, your Yonkers resident surcharge would be $837.50 (16.75% of $5,000)

Source: https://www.tax.ny.gov/pit/file/nyc_yonkers_residents.htm

B) Yonkers Nonresident Earnings Tax

Applies to: Nonresidents of Yonkers who:

  • Earn wages from work performed in Yonkers, OR
  • Carry on a trade or business in Yonkers, OR
  • Are members of a partnership that carries on a trade or business in Yonkers

Rate: 0.5% of earnings from Yonkers sources

How it works:

  • File Form Y-203 (City of Yonkers Nonresident Earnings Tax Return)
  • Tax is based on wages and net earnings from self-employment derived from services performed in Yonkers
  • Must allocate income between Yonkers and non-Yonkers sources

Convenience of employer rule applies: Similar to New York State, if your primary office is in Yonkers and you work from home outside Yonkers, those days may be considered Yonkers workdays unless your home office qualifies as a bona fide employer office.

Source: https://www.tax.ny.gov/pdf/current_forms/it/y203i.pdf

Special Considerations for New York Income Tax

Remote Workers and Multi-State Taxation

Living in New York, Working for Out-of-State Employer

As a New York resident, you owe New York income tax on ALL income, regardless of where your employer is located.

What this means:

  • Employer location does NOT determine tax obligation
  • Income from employers in other states is taxable in New York
  • You must report all wages on your New York return

Credit for taxes paid to other states:

  • If you physically work in another state and pay income tax to that state, you can claim a credit on your New York return
  • File Form IT-112-R (New York State Resident Credit) to claim the credit

Source: https://www.tax.ny.gov/pit/file/nonresident-faqs.htm

Working in New York, Living in Another State

Non-residents who perform work IN New York State owe New York income tax on income earned from New York sources.

Physical Presence Rule: Income is sourced to New York based on where work is physically performed.

Example: A New Jersey resident who commutes to Manhattan to work owes New York income tax on wages earned from work performed in New York.

Allocation required: If you work partly in New York and partly in another state, you must allocate your wages based on the number of days worked in each location.

Source: https://www.tax.ny.gov/pit/file/nonresident-faqs.htm

⚠️ Interstate Tax Risk Indicator

Remote workers involving New York commonly encounter dual taxation complications with specific states:

Working with these states requires careful planning:

  • New Jersey – Reciprocal credit arrangements, but no reciprocity agreement
  • Connecticut – Complex credit system for taxes paid to New York; Connecticut residents working in NY pay both states
  • Pennsylvania – No reciprocity with New York; dual taxation for border residents
  • Massachusetts – No reciprocity; both states tax income from their sources
  • Vermont – No reciprocity; Vermont residents working in NY must file in both states

Important: Unlike some states, New York does NOT have income tax reciprocity agreements with any other state.

Source: https://www.tax.ny.gov/pit/file/nonresident-faqs.htm

“Convenience of the Employer” Rule

New York applies a “convenience of the employer” rule for remote workers.

What it means:

If you are a nonresident whose assigned or primary work location is in New York State, days you work remotely from outside New York are generally considered New York workdays and subject to New York income tax.

Exception: Days worked at a home office outside New York will NOT be considered New York workdays if your home office qualifies as a “bona fide employer office.”

Source: https://www.tax.ny.gov/pdf/memos/income/m06_5i.pdf (TSB-M-06(5)I)

Bona Fide Employer Office Test

To qualify as a bona fide employer office, your home office must meet EITHER:

Option 1: Primary Factor

  • The home office contains or is near specialized facilities required for the job

OR

Option 2: Combined Test

  • At least 4 of the Secondary Factors, AND
  • At least 3 of the Other Factors

Secondary Factors (need at least 4):

  1. Home office is a requirement or condition of employment – Written employment contract requires working from home
  2. Employer has a bona fide business purpose for the employee’s home office location
  3. Employee performs core duties of employment at the home office
  4. Employee meets or deals with clients, patients, or customers on a regular basis at the home office
  5. Employer does not provide designated office space at the employer’s regular place of business
  6. Employer reimburses substantially all expenses (80%+) for the home office

Other Factors (need at least 3):

  1. Employer maintains a separate telephone line and listing for the home office
  2. Employee’s home office address is on business letterhead/business cards
  3. Employee uses a specific area of the home exclusively for business
  4. Employee keeps inventory or product samples at home office (if applicable)
  5. Business records are stored at the employee’s home office
  6. Home office location has a sign indicating employer’s place of business
  7. Advertising shows home office as one of employer’s places of business
  8. Home office covered by business insurance policy
  9. Employee claims a home office deduction for federal tax purposes
  10. Employee is not an officer of the company

Burden of proof: Employees must be prepared to provide documentation proving their home office qualifies as a bona fide employer office.

Source: https://www.tax.ny.gov/pdf/memos/income/m06_5i.pdf (TSB-M-06(5)I)

Real-World Impact

Example 1: Does NOT qualify as bona fide employer office

Sarah lives in New Jersey and works for a New York City-based financial services firm. She works from home 4 days a week for her own convenience. The employer:

  • Has a New York office with space available for Sarah
  • Does not require Sarah to work from home
  • Does not reimburse home office expenses

Result: Sarah’s home office does NOT qualify as a bona fide employer office. New York taxes her wages for all days worked from home under the convenience of employer rule.

Example 2: DOES qualify as bona fide employer office

Mark lives in Connecticut and works for a New York-based software company. His situation:

  • Employment contract requires him to work from home
  • Employer does not provide office space in New York for Mark
  • Employer reimburses 100% of his home office expenses
  • Home office address is on business cards
  • Mark uses a dedicated room exclusively for business
  • He stores company files and equipment at home

Result: Mark’s home office meets at least 4 secondary factors and 3 other factors. It qualifies as a bona fide employer office. Days worked from home are NOT New York workdays.

Important: The convenience of employer rule has been subject to litigation and controversy. Taxpayers affected by this rule should consider seeking professional tax advice.

Source: https://www.tax.ny.gov/pdf/memos/income/m06_5i.pdf

Reciprocal Agreements

New York does not have reciprocal agreements with other states.

When earning income in multiple states:

  • File a resident return in your state of residence reporting all income
  • File non-resident returns in other states where income was earned
  • Claim a credit on your resident state return for taxes paid to other states

Forms required (for New York residents):

  • Form IT-112-R (New York State Resident Credit for taxes paid to other jurisdictions)

Source: https://www.tax.ny.gov/pit/file/nonresident-faqs.htm

Multi-State Tax Filing for New York Residents

When earning income in multiple states as a New York resident:

  1. File Form IT-201 (New York Resident return) reporting ALL income from all sources
  2. File non-resident returns in other states where you physically performed work
  3. Claim a credit on Form IT-112-R for income taxes paid to other states

Limitations on credit:

  • Credit cannot exceed the amount of New York tax attributable to income taxed by both states
  • Credit is calculated on a state-by-state basis

Source: https://www.tax.ny.gov/pit/file/nonresident-faqs.htm

Tax Residency vs Domicile

Understanding the difference between residency and domicile is critical for determining New York State tax obligations.

Domicile Defined

Domicile is your permanent and primary home – the place you intend to return to and remain in after being away (for vacation, business, educational leave, or military assignment).

Key characteristics:

  • You can have only ONE domicile at a time
  • Domicile continues until you establish a new domicile elsewhere with the intent to remain indefinitely
  • Temporary absences do not change domicile
  • Intent to return is critical

Factors establishing domicile:

  • Where you maintain your primary residence
  • Where you are registered to vote
  • Where you have a driver’s license
  • Where you register your vehicles
  • Where your family resides
  • Where you maintain bank accounts and safe deposit boxes
  • Where you belong to social, religious, and professional organizations
  • Location stated in wills, trusts, and other legal documents
  • Where you file for homestead property tax exemptions

Source: https://www.tax.ny.gov/pit/file/pit_definitions.htm

Residency Defined

Residency for tax purposes can be established through physical presence even without domicile.

New York applies a statutory residency rule:

You are a New York State resident for income tax purposes if:

  1. You are domiciled in New York State, OR
  2. You are NOT domiciled in New York State but:
    • You maintain a permanent place of abode in New York State for substantially all of the taxable year (more than 11 months), AND
    • You spend more than 183 days in New York State during the taxable year

Important: Any part of a day spent in New York State counts as a full day for the 183-day test.

Source: https://www.tax.ny.gov/pit/file/pit_definitions.htm

Permanent Place of Abode

A permanent place of abode means:

  • A dwelling suitable for year-round use
  • That you maintain (directly or through others)
  • That is available for your use at any time

Includes:

  • House
  • Apartment
  • Co-op
  • Condo
  • Any other dwelling suitable for year-round use

Key points:

  • The dwelling does not have to be owned by you
  • It can be owned or leased by a spouse, family member, or employer
  • It must be maintained for your use (not just as an investment property)
  • Seasonal residences (used only during certain months) may NOT qualify

Source: https://www.tax.ny.gov/pit/file/pit_definitions.htm

Critical Differences — Domicile vs Statutory Residency (New York)
Factor Domicile Statutory Residency
Number allowed One at a time Can be resident of multiple states
Based on Intent + permanent home Physical presence + place of abode
Changes when Establish new permanent home with intent to remain Meet state's presence threshold (183 days + permanent place of abode)
Tax impact Taxed on worldwide income Taxed on worldwide income

Exception: Maintaining Domicile Outside New York

You can maintain a New York domicile but NOT be considered a New York resident if you meet all conditions in Group A or Group B:

Group A:

  • You did not maintain any permanent place of abode in New York State during the tax year, AND
  • You maintained a permanent place of abode outside New York State during the entire tax year, AND
  • You spent 30 days or less in New York State during the tax year

Group B:

  • You were in a foreign country for at least 450 days during any period of 548 consecutive days, AND
  • During the 548-day period, you were present in New York State for no more than 90 days, AND
  • During the tax year, you were present in New York State for no more than the number of days that bears the same ratio to 90 as the number of days in the tax year bears to 548

Source: https://www.tax.ny.gov/pit/file/pit_definitions.htm

Common Conflict Scenarios

Scenario 1: Snowbirds

  • Domicile: New York (permanent home, family, voting)
  • Winter residence: Florida (5 months/year, rented condo)
  • Days in NY: 200 days
  • Tax result: Remain New York resident (domicile in NY)

Scenario 2: Extended Work Assignment

  • Domicile: Connecticut (permanent home, family)
  • Work assignment: New York City (9 months, rented apartment)
  • Days in NY: 250 days
  • Tax result: Statutory New York resident even though domicile unchanged (maintained place of abode for substantially all year + 183+ days)

Scenario 3: Relocated but Kept NY Home

  • Domicile: Claimed to move to Florida
  • NY property: Kept apartment in Manhattan “for convenience”
  • Days in NY: 190 days
  • Tax result: Likely NY statutory resident (maintained permanent place of abode + 183+ days). May also fail to establish new Florida domicile.

Burden of Proof

If New York claims you are a resident and you dispute it, the burden falls on the taxpayer to prove:

  • Non-residency, OR
  • Domicile is in another state, OR
  • You meet one of the exceptions (Group A or B)

Common audit triggers:

  • Maintaining a New York driver’s license while claiming residency elsewhere
  • Continuing to vote in New York while claiming another state’s residency
  • Family (spouse/children) remaining in New York while taxpayer works elsewhere
  • Owning or maintaining a residence in New York while claiming non-residency
  • Day count near or over the 183-day statutory threshold
  • High income taxpayers claiming to have moved to lower-tax or no-tax states

Source: https://www.tax.ny.gov/pit/file/pit_definitions.htm

Multi-State Residency Conflicts

It is possible to be considered a resident of two states simultaneously if each state’s rules independently classify you as a resident.

Resolution:

  • File returns in both states reporting all income
  • Claim a credit on your domicile state’s return for taxes paid to the statutory resident state
  • May require professional tax assistance

Example: A person domiciled in Connecticut who maintains an apartment in Manhattan and spends 200 days in New York may be:

  • A statutory resident of New York (maintained permanent place of abode + 183+ days)
  • A resident of Connecticut (domicile)
  • Must file resident returns in both states and claim a credit

Source: https://www.tax.ny.gov/pit/file/nonresident-faqs.htm

Documentation Commonly Requested in Residency Audits

New York State tax authorities frequently audit residency determinations, particularly for high-income taxpayers. The following documentation types are commonly requested:

Primary Residency Evidence (New York)
Document Type What It Shows
Driver's License State of legal residence
Voter Registration Where you exercise voting rights
Vehicle Registration Where vehicles are domiciled
Professional Licenses State of professional domicile
Passport Address listed on passport
Physical Presence Documentation (New York)
Document Type What It Shows
Day-Count Logs Physical location by day
Travel Records Airline tickets, hotel receipts, border crossings
Credit Card Statements Geographic spending patterns
Cell Phone Records Location data from carrier
E-ZPass / Toll Records Bridge and tunnel crossings showing state line crossings
Appointment Calendars Doctor, dentist, professional appointments showing location
Property and Financial Ties (New York)
Document Type What It Shows
Property Ownership Records Real estate holdings in each state
Homestead Exemption Applications Primary residence claim
Utility Bills Physical occupancy patterns (electricity, gas, water usage)
Home Insurance Policies Which property is insured as primary residence
Rental/Lease Agreements Residence location and terms
Bank Statements Financial institution location, ATM usage patterns
Social and Family Connections (New York)
Document Type What It Shows
Family Location Documentation Where spouse and children reside, where they attend school
Medical Records Where you receive regular medical care, dentist visits
Religious Affiliation Records Place of worship attendance
Club Memberships Country clubs, athletic clubs, social organizations
Charitable Contributions Organizations you support and their locations
Employment Documentation (New York)
Document Type What It Shows
W-2 Forms Employer location, state wages
Employment Contract Work location requirements, remote work provisions
Remote Work Agreement Authorization and requirements to work remotely
Business Travel Records Days worked in each location
Intent Documentation (New York)
Document Type What It Shows
Will and Estate Documents Stated domicile for probate purposes
Prior Tax Returns Residency claims in previous years
Insurance Policies Address on file with insurers
Securities and Investment Accounts Address of record
Vehicle Insurance Where vehicles are garaged, rated, and registered

New York-Specific Audit Triggers

Common patterns that trigger New York residency audits:

  1. High income taxpayers (New York aggressively audits high-income individuals claiming to have moved)
  2. Claiming non-residency while maintaining a New York City apartment (particularly Manhattan)
  3. Family remaining in New York while taxpayer claims to have moved
  4. Day count near 183-day threshold (180-190 days in New York)
  5. Continuing New York ties (license, voter registration, country club memberships)
  6. Moving to states with no income tax (Florida, Texas, Nevada, etc.)
  7. Sale of business or major liquidity event shortly before claiming residency change

Source: https://www.tax.ny.gov/pdf/questionnaires/au-262.55.pdf

Burden of Proof

In residency disputes:

  • The burden falls on the taxpayer to prove non-residency or domicile elsewhere
  • New York will examine the totality of facts and circumstances
  • Documentary evidence is essential
  • Taxpayer credibility and consistency are critical

New York’s position: If you cannot clearly demonstrate that you’ve abandoned your New York domicile and established domicile elsewhere, or that you don’t meet the statutory residency test, New York will assert you remain a resident.

Source: https://www.tax.ny.gov/pit/file/pit_definitions.htm

Military Personnel

Servicemembers Civil Relief Act (SCRA)

Active duty military members stationed in New York State due to military orders:

  • Do NOT become New York residents solely due to military orders
  • Pay income tax to their state of legal residence (domicile)
  • Are NOT subject to New York income tax on military pay

What this means:

  • If you maintain legal domicile in another state, you do not owe New York tax on your military pay
  • Even if stationed in New York for multiple years, military orders do not create New York residency

Source: https://www.tax.ny.gov/pit/file/nonresident-faqs.htm

Military Spouses Residency Relief Act (MSRRA)

Spouses of active duty military servicemembers can maintain their home state residency if:

  • The spouse is in New York solely to be with the servicemember
  • The servicemember is in New York under military orders
  • The spouse maintains domicile in the same state as the servicemember

Tax treatment:

  • Spouse is not taxed by New York on income earned in New York
  • Spouse files as a resident of their home state
  • Must file Form IT-2104-MS (New York State Withholding Exemption Certificate for Military Service Personnel)

Source: https://www.tax.ny.gov/pit/file/nonresident-faqs.htm

Military Retirement Pay

New York fully exempts military retirement pay from state income tax.

This includes:

  • Military pensions from the U.S. Department of Defense
  • Pensions for service in the U.S. Armed Forces
  • Survivor Benefit Plan (SBP) payments to surviving spouses

How to claim exemption:

  • Military retirement pay is reported as a subtraction modification on the New York return
  • Reduces New York adjusted gross income

Source: https://www.tax.ny.gov/data/stats/ter/fiscal-year26/personal-income-tax.htm

What Military Members DO Owe Tax On

Military members who ARE New York residents (domicile in New York) owe New York income tax on:

  • Non-military income earned in New York or elsewhere
  • Investment income (interest, dividends, capital gains)
  • Rental income from New York property
  • Business income
  • Spouse’s wages (unless protected by MSRRA)

Source: https://www.tax.ny.gov/pit/file/nonresident-faqs.htm

Retirees

Social Security Benefits

New York does not tax Social Security benefits.

All Social Security retirement, disability, and survivor benefits are exempt from New York State income tax.

How it works:

  • Social Security benefits included in federal adjusted gross income are subtracted when calculating New York adjusted gross income
  • No additional form required; subtraction is made on Form IT-201 or IT-203

Source: https://www.tax.ny.gov/pdf/2025/inc/it201i_2025.pdf

Pension Income

New York allows a pension and annuity income exclusion up to $20,000.

Eligibility:

  • Must be age 59½ or older, OR
  • Qualify under disability income exclusion rules

What qualifies:

  • Private employer pensions from qualified plans
  • Federal, state, and local government pensions
  • Traditional IRA distributions
  • 401(k), 403(b), and 457 plan distributions
  • Annuity payments

Limitations:

  • Maximum exclusion: $20,000 per taxpayer per year
  • If claiming both pension exclusion AND disability income exclusion, combined total cannot exceed $20,000
  • Married filing jointly: Each spouse can claim up to $20,000 if each has qualifying income

How to claim:

  • Exclusion is claimed on Form IT-201 or Form IT-203
  • Complete the pension and annuity income exclusion worksheet in the form instructions

Source: https://www.tax.ny.gov/pdf/2025/inc/it201i_2025.pdf

Retirement Account Distributions

Traditional IRA and 401(k):

  • Distributions are fully taxable as ordinary income
  • May qualify for pension and annuity exclusion (up to $20,000)

Roth IRA:

  • Qualified distributions are tax-free for both federal and New York purposes
  • No additional New York tax on qualified Roth IRA distributions

Source: https://www.tax.ny.gov/pdf/2025/inc/it201i_2025.pdf

New York’s 529 College Savings Program

While primarily for college savers, retirees who are still funding education for grandchildren or dependents benefit from:

Contributions: Up to $5,000 deduction ($10,000 married filing jointly) for contributions to New York’s 529 plan

Distributions: Qualified distributions for higher education expenses are not subject to New York tax

Source: https://www.tax.ny.gov/pdf/2025/inc/it201i_2025.pdf

Students

College students attending school in New York State do NOT automatically become residents for tax purposes.

You remain a non-resident if:

  • You maintain legal residence (domicile) in another state
  • Your presence in New York is temporary for educational purposes
  • You intend to return to your home state after graduation

You owe New York tax only on New York-source income:

  • Wages earned from working in New York (on-campus jobs, internships, etc.)
  • Scholarships and fellowships used for non-qualified expenses (may be taxable)

Source: https://www.tax.ny.gov/pit/file/nonresident-faqs.htm

Establishing New York Residency as a Student

Students CAN become New York residents if they take affirmative steps to establish domicile in New York:

  • Register to vote in New York
  • Obtain a New York driver’s license
  • Purchase property in New York
  • Declare intent to remain in New York indefinitely after graduation
  • Obtain employment in New York after graduation and remain

Important: Simply attending college in New York for multiple years does NOT, by itself, change your domicile to New York.

Source: https://www.tax.ny.gov/pit/file/pit_definitions.htm

Special Rule for Undergraduate Students

New York has a specific provision for undergraduate students:

You are NOT considered to maintain a permanent place of abode in New York solely because you live in:

  • Student housing (dormitory) while attending college as a full-time undergraduate student
  • Off-campus housing while a full-time undergraduate, if you maintain domicile elsewhere

This means: Living in New York as a full-time undergraduate student will NOT cause you to become a statutory resident under the 183-day rule, as long as your domicile remains in another state.

Source: https://www.tax.ny.gov/pdf/memos/income/m09_15i.pdf (TSB-M-09(15)I)

Part-Year Residents

If you moved TO or FROM New York during 2025, you must file as a part-year resident.

Income Allocation

As a part-year resident, you are taxed on:

  • All income earned while a New York resident (from all sources)
  • Income from New York sources earned while a non-resident

You are NOT taxed on:

  • Income from non-New York sources earned while a non-resident

Source: https://www.tax.ny.gov/forms/html-instructions/2025/it/it203i-2025.htm

Moving TO New York

Steps to take:

  • Determine your New York residency start date (the day you establish domicile in New York)
  • Report all income from all sources earned from that date forward on Form IT-203
  • File a non-resident return in your former state for income earned before moving (if required)
  • Prorate standard deduction and exemptions based on residency period

Source: https://www.tax.ny.gov/forms/html-instructions/2025/it/it203i-2025.htm

Moving FROM New York

Steps to take:

  • Determine your New York residency end date (the day you establish domicile elsewhere)
  • Report all income from all sources earned through that date on Form IT-203
  • File a non-resident or part-year resident return in your new state
  • Prorate standard deduction and exemptions based on residency period

Critical for moving FROM New York:

  • Document the change of domicile thoroughly
  • Change driver’s license, voter registration, and other official records
  • Update address with employers, banks, and government agencies
  • New York may audit to verify you actually changed domicile

Form required: Form IT-203 (Nonresident and Part-Year Resident Income Tax Return)

Source: https://www.tax.ny.gov/forms/html-instructions/2025/it/it203i-2025.htm

Change of City Resident Status

If you moved INTO or OUT OF New York City or Yonkers during the year, you must also complete:

Form IT-360.1 (Change of City Resident Status)

This form calculates the proration of New York City income tax or Yonkers resident income tax surcharge.

Source: https://www.tax.ny.gov/pit/file/nyc_yonkers_residents.htm

Common Tax Filing Situations

These are factual clarifications based on official New York State guidance and tax law.

Situation: “My employer is in another state, so I don’t owe New York tax”

New York law: New York residents owe tax on all income regardless of where the employer is located. Employer location does not determine tax obligation.

If you are a New York resident and your employer is located in California, your wages are still subject to New York income tax. You report all wages on your New York return.

Source: https://www.tax.ny.gov/pit/file/nonresident-faqs.htm

Situation: “I work remotely full-time from home outside New York for a New York employer, so I don’t owe New York tax”

New York law: Non-residents working remotely for a New York employer MAY owe New York tax under the “convenience of the employer” rule.

If your assigned or primary office is in New York and you work from home for your own convenience (not employer necessity), New York considers those days worked in New York.

Exception: If your home office qualifies as a “bona fide employer office,” those days are NOT New York workdays.

Source: https://www.tax.ny.gov/pdf/memos/income/m06_5i.pdf (TSB-M-06(5)I)

Situation: “I’m a part-year resident, so I owe half the tax”

New York law: Part-year residents owe tax on income earned during New York residency period PLUS income from New York sources during non-residency period.

This is NOT a simple percentage reduction. You must calculate tax as a full-year resident, then multiply by your income percentage (New York source income divided by all income).

Source: https://www.tax.ny.gov/forms/html-instructions/2025/it/it203i-2025.htm

Situation: “I have a New York driver’s license but live in Florida now, so I’m a Florida resident”

New York position: Maintaining a New York driver’s license while claiming Florida residency is an audit red flag. New York will examine all facts and circumstances.

To establish Florida domicile:

  • Change driver’s license to Florida
  • Register to vote in Florida
  • Register vehicles in Florida
  • Establish primary residence in Florida
  • Sever ties to New York

Burden of proof: Falls on taxpayer to prove domicile changed.

Source: https://www.tax.ny.gov/pit/file/pit_definitions.htm

Situation: “I only spent 180 days in New York, so I’m not a resident”

New York law: The threshold is 183 days, not 180. However, “any part of a day” counts as a full day.

If you maintain a permanent place of abode in New York for substantially all of the year (11+ months) AND spend 183 days or more in New York, you are a statutory resident.

Important: Arriving late at night or leaving early in the morning still counts as a full day in New York.

Source: https://www.tax.ny.gov/pit/file/pit_definitions.htm

Situation: “I don’t need to file because I’m below the federal filing threshold”

New York law: New York filing requirements are separate from federal requirements.

You must file a New York return if:

  • You are required to file a federal return, OR
  • Your federal adjusted gross income plus New York additions exceeds $4,000 ($3,100 if single and claimed as a dependent)

Even if you are not required to file federally, you may be required to file in New York.

Source: https://www.tax.ny.gov/pit/file/do_i_need_to_file.htm

Situation: “I paid estimated taxes, so I don’t need to file a return”

New York law: Paying estimated taxes does NOT eliminate the requirement to file a return.

All taxpayers who meet the filing requirements must file Form IT-201 or Form IT-203. Estimated tax payments are credited toward your total tax liability when you file.

To claim a refund of overpaid estimated taxes, you MUST file a return.

Source: https://www.tax.ny.gov/pit/

Forms & Publications

Primary Tax Return Forms

Resident return:

Non-resident/part-year return:

Source: https://www.tax.ny.gov/forms/

Common Schedules

  • Form IT-196: New York Resident, Nonresident, and Part-Year Resident Itemized Deductions
  • Form IT-203-B: Nonresident and Part-Year Resident Income Allocation and College Tuition Itemized Deduction Worksheet
  • Form IT-201-ATT: Other Tax Credits and Taxes
  • Form IT-112-R: New York State Resident Credit (for taxes paid to other jurisdictions)
  • Form IT-360.1: Change of City Resident Status

Source: https://www.tax.ny.gov/forms/

Withholding Forms

  • Form IT-2104: Employee’s Withholding Allowance Certificate (New York’s equivalent to federal W-4)
  • Form IT-2104-E: Certificate of Exemption from Withholding
  • Form IT-2104.1: New York State, City of New York, and City of Yonkers Certificate of Nonresidence and Allocation of Withholding Tax
  • Form IT-2104-MS: New York State Withholding Exemption Certificate for Military Service Personnel

Source: https://www.tax.ny.gov/forms/

Exemption and Status Certificates

Reciprocity: New York does not have reciprocity agreements; no exemption forms

Military Spouse Exemption:

  • Form IT-2104-MS: Withholding Exemption Certificate for Military Service Personnel

Nonresident Allocation:

  • Form IT-2104.1: Certificate of Nonresidence and Allocation of Withholding Tax

Source: https://www.tax.ny.gov/forms/

Extension and Estimated Tax Forms

  • Form IT-370: Application for Automatic Six-Month Extension of Time to File for Individuals
  • Form IT-2105: Estimated Tax Payment Voucher for Individuals

Note: If you file a federal extension (Form 4868), you do not need to file a separate New York extension.

Source: https://www.tax.ny.gov/pit/file/ext.htm

Local Income Tax Forms

New York City:

  • NYC income tax is reported on Form IT-201 (no separate NYC return for residents)

Yonkers:

  • Form Y-203: City of Yonkers Nonresident Earnings Tax Return
  • Yonkers resident surcharge is reported on Form IT-201

Change of City Status:

  • Form IT-360.1: Change of City Resident Status

Source: https://www.tax.ny.gov/pit/file/nyc_yonkers_residents.htm

Key Publications

  • Publication NYS-50: Employer’s Guide to Unemployment Insurance, Wage Reporting, and Withholding Tax
  • Publication NYS-50-T-NYS: New York State Withholding Tax Tables and Methods
  • Publication NYS-50-T-NYC: New York City Withholding Tax Tables and Methods
  • Publication NYS-50-T-Y: Yonkers Withholding Tax Tables and Methods
  • Publication 55: Designated Private Delivery Services

Source: https://www.tax.ny.gov/pubs_and_bulls/

Where to Submit Paper Returns

If you owe tax or are sending a payment:

NYS PROCESSING CENTER
PO BOX 4125
BINGHAMTON NY 13902-4125

If you are due a refund or owe no tax:

NYS PROCESSING CENTER
PO BOX 61000
ALBANY NY 12261-0001

For overnight/courier delivery:

BINGHAMTON NY TAX DEPARTMENT
PO BOX 4125
BINGHAMTON NY 13902-4125

Source: https://www.tax.ny.gov/forms/html-instructions/2025/it/it201i-2025.htm

Penalties and Interest

Late Filing Penalty

New York imposes a penalty for failure to file a return by the due date (including extensions).

Penalty: The greater of:

  • $100, OR
  • An amount equal to 5% of the tax required to be shown on the return for each month (or fraction of a month) the return is late, up to a maximum of 25%

Example: If your tax liability is $5,000 and you file 3 months late:

  • Penalty: 15% of $5,000 = $750

Source: https://www.tax.ny.gov/pdf/2025/inc/it201i_2025.pdf

Late Payment Penalty

New York imposes a penalty for failure to pay tax by the due date.

Penalty: 0.5% of the unpaid tax for each month (or fraction of a month) the tax is unpaid, up to a maximum of 25%

If both late filing and late payment penalties apply: The late filing penalty is reduced by the amount of the late payment penalty.

Source: https://www.tax.ny.gov/pdf/2025/inc/it201i_2025.pdf

Interest on Unpaid Tax

New York charges interest on any tax not paid by the due date.

Rate: Variable rate set quarterly based on the federal short-term rate plus 4 percentage points

Current rate: Check https://www.tax.ny.gov/pay/interest/ for current and historical rates

Compounding: Interest is compounded daily

Important: Interest accrues on the unpaid tax from the original due date of the return until the date paid, even if an extension was granted.

Source: https://www.tax.ny.gov/pay/interest/

Underpayment of Estimated Tax Penalty

If you did not pay enough tax through withholding and estimated tax payments, you may owe an underpayment penalty.

You may owe a penalty if:

  • Your total tax for the year minus amounts withheld is $300 or more, AND
  • You did not pay at least:
    • 90% of the tax shown on your current year return, OR
    • 100% of the tax shown on your prior year return (110% if prior year AGI exceeded $150,000), OR
    • 90% of the tax that would be due if you annualized your income

Safe harbor provisions:

New York follows federal safe harbor rules. You will not owe an underpayment penalty if your estimated payments and withholding equal or exceed:

  • 100% of prior year tax (110% if prior year New York AGI exceeded $150,000), OR
  • 90% of current year tax

Form: IT-2105.9 (Underpayment of Estimated Tax by Individuals and Fiduciaries) – Used to calculate the penalty

Source: https://www.tax.ny.gov/pit/estimated_tax/

Penalty and Interest Calculator

New York provides an online calculator to estimate penalties and interest:

https://www.tax.ny.gov/penalty_and_interest_calculator/

Source: https://www.tax.ny.gov

Information Verification Log

New York Income Tax — Information Verification Log
Information Type Source Last Verified
Tax rates and brackets NY Tax Department — Income Tax Tables February 12, 2026
Standard deduction amounts NY Tax Department — Standard Deductions February 12, 2026
Tax credits NY Tax Department — Income Tax Credits February 12, 2026
Filing deadlines NY Tax Department — Personal Income Tax February 12, 2026
Local income tax information NYC & Yonkers Resident Income Tax February 12, 2026
Convenience of employer rule NY Tax Memo — Convenience of the Employer Rule February 12, 2026
Residency rules NY Tax Department — Residency Definitions February 12, 2026
Forms and publications NY Tax Department — Forms & Publications February 12, 2026

Official New York Income Tax Resources

All information on this page is compiled exclusively from official government sources.

New York State Department of Taxation and Finance

New York Tax Law and Regulations

Contact Information

Phone: 518-457-5181 (Personal Income Tax Information Center)

Hours: Monday – Friday, 8:00 AM – 5:00 PM (Eastern Time)

Automated Refund Status: 518-457-5149

Online Services: https://www.tax.ny.gov/online/ (check refund status, make payments, view account)

Mailing Address:

NYS TAX DEPARTMENT
W A HARRIMAN CAMPUS
ALBANY NY 12227

Physical Office Locations: https://www.tax.ny.gov/help/contact/

Source: https://www.tax.ny.gov/help/contact/

Taxpayer Rights Advocate

If you are unable to resolve a dispute with the Tax Department through normal channels:

New York State Taxpayer Rights Advocate

Website: https://www.tax.ny.gov/tra/
Phone: 518-530-2260

The Taxpayer Rights Advocate assists taxpayers in resolving problems, complaints, or requests involving the Tax Department.

Source: https://www.tax.ny.gov/tra/

Free Tax Assistance

New York State Department of Taxation and Finance Free Tax Preparation:

If your 2025 federal adjusted gross income (FAGI) was $89,000 or less and you have investment income of $11,950 or less, you qualify for free tax preparation assistance.

Website: https://www.tax.ny.gov/pit/efile/
Phone: Check website for locations and appointments

VITA (Volunteer Income Tax Assistance):

Free tax help for taxpayers who generally make $67,000 or less, persons with disabilities, and limited English speakers.

Find locations: https://irs.treasury.gov/freetaxprep/

TCE (Tax Counseling for the Elderly):

Free tax help for taxpayers age 60 and older.

Find locations: https://irs.treasury.gov/freetaxprep/

AARP Foundation Tax-Aide:

Free tax assistance for low- to moderate-income taxpayers, with special attention to those age 50 and older.

Find locations: https://www.aarp.org/money/taxes/aarp_taxaide/

Source: https://www.tax.ny.gov/pit/efile/ and https://www.irs.gov

Where to Check for Updates

Current Tax Rate Tables:

https://www.tax.ny.gov/pit/file/tax-tables/ – Updated annually, typically published November-December

Forms Library:

https://www.tax.ny.gov/forms/ – Forms available starting January each year

Legislative Changes:

Administrative Guidance:

Taxpayer Notices:

Email Subscription:

Subscribe to receive email notifications: https://www.tax.ny.gov/help/subscribe.htm

Note: This page will be reviewed and updated in January 2027 for Tax Year 2026. For real-time updates, always consult the official New York State Department of Taxation and Finance website.

Source: https://www.tax.ny.gov

Tax Glossary

Adjusted Gross Income (AGI): For federal purposes, total income minus specific above-the-line deductions. For New York, federal AGI plus New York additions minus New York subtractions equals New York adjusted gross income.

Taxable Income: New York adjusted gross income minus standard deduction (or itemized deductions) and dependent exemptions.

Resident: Individual who is domiciled in New York State, or who maintains a permanent place of abode in New York State for substantially all of the tax year and spends more than 183 days in New York State.

Non-Resident: Individual who is not a New York State resident.

Part-Year Resident: Individual who moved into or out of New York State during the tax year.

Domicile: Your permanent and primary home – the place you intend to return to and remain in after being away.

Permanent Place of Abode: A dwelling suitable for year-round use that you maintain (directly or through others) and that is available for your use at any time.

Convenience of the Employer Test: New York rule that determines whether days worked remotely outside New York by a nonresident employee are treated as New York workdays.

Bona Fide Employer Office: A home office or other location that meets specific criteria under New York law, such that days worked there are not considered New York workdays for nonresidents.

Withholding: Tax deducted from your paycheck by your employer and remitted to New York State on your behalf.

Reciprocity: Agreement between states where residents working across state lines pay tax only to their state of residence. Note: New York does not have reciprocity agreements with any state.

Tax Credit: Dollar-for-dollar reduction in tax owed (e.g., $500 credit reduces tax by $500).

Tax Deduction: Reduces taxable income (e.g., $500 deduction reduces taxable income by $500, saving approximately $25-$55 depending on tax rate).

Filing Status: Category determining tax rates and standard deduction (Single, Married Filing Jointly, Married Filing Separately, Head of Household, Qualifying Surviving Spouse).

Standard Deduction: Fixed dollar amount subtracted from New York adjusted gross income before calculating tax. Alternative to itemizing deductions.

Source: https://www.tax.ny.gov/pit/file/pit_definitions.htm

Update History

This section documents all material changes to New York income tax information on this page.

February 2026 – Initial Publication

  • Published comprehensive New York State income tax guide for Tax Year 2025 (returns filed in 2026)
  • Documented all tax rate schedules, brackets, and tables
  • Verified standard deduction amounts: $8,000 (Single), $16,050 (Married Filing Jointly)
  • Documented dependent exemption: $1,000 per dependent
  • Compiled local income tax information (NYC and Yonkers)
  • Documented “convenience of the employer” rule and bona fide employer office test
  • Included residency vs. domicile guidance and audit documentation requirements
  • Source: New York State Department of Taxation and Finance publications and forms dated November 2025 – February 2026

Verification Schedule:

  • Annual Update: January (new tax rates and forms)
  • Mid-Year Review: June (legislative changes, if any)
  • Continuous Monitoring: Emergency tax legislation, disaster relief extensions
  • Source Link Check: Quarterly (all .gov URLs verified functional)

Last comprehensive update: February 12, 2026
Next scheduled review: January 2027 (for Tax Year 2026 updates)

Source: https://www.tax.ny.gov

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