New York Tax Calculator: Estimate your taxes
Warning: Calculations are estimates based on December 2021 tax rates and Tax Foundation data. These rates are subject to change. Check the IRS website for the latest income tax information and your state’s tax website for state-specific information. Our calculator does not take into account 401k and IRA deductions due to tax law limitations. Please note that the amount of your IRA deductions may vary. You should speak with a tax professional to determine your tax situation.
What you need to know about New York State taxes
New York State requires you to pay taxes whether you are a resident or non-resident who receives income from a New York source. The state income tax rate ranges from 4% to 8.82%, and the sales tax rate is 4%.
New York State offers tax deductions and credits to reduce your tax liability, including Standard Deduction, Itemized Deduction, Earned Income Tax Credit, Child Care Credit and dependents, college access credit, etc.
New York State Income Tax
New York Income Tax Brackets and Rates: Separate Filings for Singles and Married People
New York Income Tax Brackets and Rates: Joint Filing and Qualified Widow(er)
New York Income Tax Brackets and Rates: Head of Household
New York State Income Tax Deductions
New York State allows taxpayers to claim a standard deduction based on their filing status as follows:
You can claim itemized deductions on your New York tax return, whether or not you itemize your deductions for federal purposes. New York allows itemized deductions for things like:
- Medical and dental expenses
- National and local taxes
- Mortgage interest paid
- Charitable donations
- Injuries and thefts
- Business and miscellaneous expenses, including travel, entertainment, gifts, car expenses and other deductions.
New York State Income Tax Credits
Earned income tax credit
You can claim the New York earned income tax credit if you have an eligible child and can also claim the federal earned income tax credit. You are not eligible for this credit if you have claimed the New York State non-custodial parent income tax credit (see below). The credit is equal to 30% of your federal earned income tax credit minus your household credit.
Household Tax Credit
You can claim the household tax credit if you cannot be claimed as a dependent on someone else’s federal income tax return. You must also be a resident of New York all or part of the year and meet certain income thresholds. The credit is worth up to $75 for single filers earning less than $28,000. For other filers, the credit is based on the number of dependents claimed on your New York tax return.
Credit for child care and dependent care
You are eligible for the child care and dependent care credit if you qualify for the federal child care and dependent care credit, whether or not you claim it on your tax return. the credit is determined by the number of your eligible children and the amount of child care expenses paid during the year. The credit is worth up to $2,310 for the 2020 tax year. If the credit is more than the amount you owe in taxes, you may receive a tax refund.
Tuition tax credit
You can claim the tuition tax credit if you live in New York year-round. You paid qualified tuition fees for undergraduate higher education for yourself, your spouse, or a dependent (which you claimed on the tax return). The amount of the credit can reach $400 per student and is a refundable tax credit.
Do I have to pay income tax in New York?
You must file a New York State tax return if:
- You are a resident and must file a federal income tax return.
- You are a non-resident, but you have income from New York sources.
You are considered a resident if you are one of the following:
- You are domiciled At New York. For example, your main residence is in New York.
- New York State can still ask you to pay taxes even if you don’t live in New York, but maintain a home in New York and spend at least 184 days in New York during the year.
Here is how New York State determines residency status:
New York Sales Tax Rates
New York State charges a 4% state sales tax. Some localities charge an additional state sales tax rate. There is an additional sales tax rate of 0.375% on taxable sales within the Metropolitan Commuter Transportation District (MCTD).
Property taxes and property tax rates
New York State assesses property tax on real estate.
Property tax exemptions
New York State offers property tax exemptions to homeowners, veterans, and nonprofit and religious organizations.
Capital gains tax
New York taxes your capital gains up to 8.82%.
Inheritance and Inheritance Tax
New York does not have an estate tax but does impose a inheritance tax.