New York State embraces a progressive income taxation system. It signifies tax rates increase as the level of income rises. Residents and specific non-residents earning income in the state are subject to such rates. The mentioned rates change from 4% to 10.9% in accordance with the taxable income. Active-duty pay is taxed like normal income if you are a resident of the state.

Sales Tax Rates(Updated January

“The Children’s Agenda is thrilled to see the legislature’s proposal to enact the Working Families Tax Credit in the state budget this year. Our state’s unacceptably high rates of child poverty are the results of policy choices – not personal failures – and it is exciting to see the State Senate and Assembly decide to make a different choice this year. Tax credits are a proven tool to reduce child poverty and make New York State more affordable for all families. We urge the legislature and Governor to include this proposal in the enacted state budget,” said Larry Marx, CEO, The Children’s Agenda. Capital gains are more concentrated among high-income taxpayers, with millionaires accounting for over 75% of all reported capital gains. Hawaii has high retirement income taxes compared to https://www.bookstime.com/articles/period-costs other states in the U.S.

When should residents file?

Single filers making more than $325,000 (or $650,000 married filing jointly) can expect to reach the highest tax rate of 11%. However, that income rate drops to 1.4% for single taxpayers making less than $9,600 (or $19,200 for married couples). Kiplinger used data from the Tax Foundation to identify the eight states (plus Washington, D.C.) with the highest income tax rates in 2025. A marginal tax rate is the amount you pay for every additional dollar of a revenue stream. This means the highest tax bracket you qualify for is only paid on part of your income.

Calculators

To do this, we need to look at the differences between your adjusted gross income (AGI) and taxable income. New York State’s top marginal income tax rate of 10.9% is one of the highest in the country, but very few taxpayers pay that amount. The state applies taxes progressively (as does the federal government), with higher earners paying higher rates. For your 2024 taxes (which you’ll file in early 2025), only individuals making more than $25,000,000 pay the top rate, and earners in the next bracket pay 0.6% less. Joint filers face the same rates, with brackets approximately double those of single filers.

New York Income Taxes

• The number of dependents reported on New Yorkers’ tax returns is approximately 10% fewer than in tax year 2017, but has remained relatively stable since 2020.
• High-earning New Yorkers with an adjusted gross income (AGI) over $107,650 are also required to pay a supplemental tax, which requires additional worksheets (learn more).
• If you have a qualifying child or relative, you might qualify for the Child Tax Credit.
• She believes knowledge is the key to success and enjoys providing content that educates and informs.
• There are numerous additional tax credits offered in the state of New York, many of which primarily benefit low income households.
• The bill is also identical to the top recommendation of Governor Kathy Hochul’s expert Child Poverty Reduction Advisory Council.

New York’s estate tax is based on a graduated rate scale, with tax rates increasing from 3.06% to 16% as the value of the estate grows. The exemption for the 2024 tax year is $6.94 million, which means that any bequeathed estate valued below that amount is not taxable. The credit would also be pinned to inflation, so support for families will grow even if costs rise. Ties in rank with New Jersey for the fourth highest income tax rate at 10.75%. Like the Garden State, you’ll pay this tax if your income is over $1 million. Most other retained earnings taxpayers in the state pay a flat income tax rate of 5%.

The number of millionaires fluctuates with the New York State economy, but not with any single economic indicator. As a Tax Writer at Kiplinger, Kate believes that tax and finance news should meet people where they are today, across cultural, educational, and disciplinary backgrounds. You may reconsider living and retiring in one of these states due to high nyc income tax taxes. The Empire State has the second highest tax burden in the country — after Hawaii, according to a new report released by WalletHub ahead of Tax Day on April 15. Don’t wait to get the expert insights you need to take control of your finances. This program can significantly lower the portion of your taxes that go toward funding public schools in your area.