In New York City, residents are required to pay a local income tax in addition to state income taxes. This is not the case in most other places in the United States. The income tax rate in NYC varies from 3.078% to 3.876% depending on how much money you earn. This tax is applicable to all residents of the city and is paid once a year, along with your New York State taxes. The total income tax rates, including both state and city taxes, can range from 7.078% to 14.776%. This means that top earners in this area face one of the highest tax burdens in the country.
This article provides a clear explanation of the income tax brackets in NYC for different filing statuses. It also discusses the tax credits that are available and offers some tips on how to lower or avoid paying the city income tax. We also discuss other important factors, such as how selling property or renting it out can impact your taxes. If you want to find ways to handle or reduce your income taxes in New York City, this guide can help you.
How Much Is Income Tax in NYC?
The income tax rates in New York City vary depending on your income bracket. The rates are 3.078%, 3.762%, 3.819%, and 3.876%. Your position within these brackets is determined by your filing status and annual income. You will need to pay New York State taxes in addition to the NYC income tax. The New York State taxes can range from 4% to 10.9%. The cumulative income tax for residents of NYC is between 7.078% and 14.776%.
New York City Tax Brackets 2024
Married Filing Jointly NYC Tax Brackets
- Earning less than $21,600: 3.078%
- Earning between $21,600 and $45,000: $665 plus 3.762% of the excess over $21,600
- Earning between $45,000 and $90,000: $1,545 plus 3.819% of the excess over $45,000
- Earning over $90,000: $3,264 plus 3.876% of the excess over $90,000
Single or Married Filing Separately NYC Tax Brackets
- Earning less than $12,000: 3.078%
- Earning between $12,000 and $25,000: $369 plus 3.762% of the excess over $12,000
- Earning between $25,000 and $50,000: $858 plus 3.819% of the excess over $25,000
- Earning more than $50,000: $1,813 plus 3.867% of the excess over $50,000
Head of Household NYC Tax Brackets
- Earning less than $14,400: 3.078%
- Earning between $14,400 and $30,000: $443 plus 3.762% of the excess over $14,400
- Earning between $30,000 and $60,000: $858 plus 3.819% of the excess over $30,000
- Earning more than $60,000: $2,176 plus 3.867% of the excess over $60,000
Also Read: All About NYC Sublease Agreement Guide for 2024
NYC Income Tax Credits
NYC School Tax Credit
The NYC School tax credit is a benefit that is offered to residents of New York City. To be eligible for this credit, you must have a total household income that is less than $250,000. Individual taxpayers who are not claimed by someone else can receive a $63 credit. If you file your taxes jointly, you will receive a credit of $125. In order to receive this credit, you must not be claimed as a dependent on someone else’s tax return.
NYC Household Credit
If you are not listed as a dependent on someone else’s tax return, you can qualify for the New York City Household Credit. This credit can range from $15 to $30. You can receive extra credit for each dependent you claim.
New York City Earned Income Credit
Both New York state and New York City provide an earned income tax credit. The NYC earned income credit is a tax credit that is calculated as 5% of your allowable federal earned income tax credit.
NYC Child and Dependent Care Credit
If you live in NYC and you paid for child care for a child who is under 4 years old, you might be able to get up to 75% of your NY State Dependent Care Credit. In order to qualify for the NYC Child and Dependent Care Credit, your total household income must be below $30,000.
NYC Real Property Credit
The NYC Real Property Credit is a benefit that is available to both renters and homeowners who live in a property that is not exempt from real property taxes. Your total household income must be below $200,000. You can receive a credit of up to $500.
Leave a Reply