New York Tax Guide
10.9%top marginal rate
New York has one of the highest overall tax burdens in the nation. The state income tax tops out at 10.9%, and New York City residents pay an additional city income tax of up to 3.876%. Property taxes are well above average, and there's an estate tax with a 'cliff' effect.
New York Tax at a Glance
Income Tax
10.9%
Top marginal rate
Sales Tax
4%
State-level rate
Property Tax
1.72%
56% above the national average
Estate Tax
Yes
State-level estate/inheritance tax
How New York Compares to the National Average
Notable Tax Facts
- Top state income tax rate of 10.9% — fourth highest nationally
- NYC adds its own income tax of up to 3.876%, bringing total to ~14.8%
- Estate tax has a $6.94 million exemption with a dangerous 'cliff' — exceeding it by just 5% makes the entire estate taxable
- New York has experienced significant outmigration to Florida, Texas, and other low-tax states
- Property taxes are high statewide, especially on Long Island and in Westchester County
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New York Tax FAQ
What is New York's income tax rate?
New York state has a progressive income tax from 4% to 10.9%. NYC residents also pay city income tax of 3.078% to 3.876%, bringing the combined top rate to nearly 14.8%.
What is the New York estate tax cliff?
New York's estate tax has a $6.94 million exemption, but with a 'cliff' — if the estate exceeds the exemption by more than 5%, the ENTIRE estate is taxable, not just the excess. This can result in effective tax rates over 100% near the threshold.
How much is the NYC income tax?
New York City residents pay an additional city income tax of 3.078% to 3.876% on top of the state income tax. Yonkers also levies a surcharge on state tax.
Why are people leaving New York for Florida?
The combination of high income taxes (up to 14.8% in NYC), high property taxes, high cost of living, and remote work opportunities has driven significant outmigration to no-income-tax states like Florida and Texas.
Does New York tax retirement income?
New York does not tax Social Security benefits. Government pensions are also fully exempt. Private pensions and 401k/IRA withdrawals get a $20,000 annual exclusion for those 59.5 and older.
Compare With Other States
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Educational content, not tax advice. Tax rates are approximate and subject to change. Consult a qualified CPA or tax professional for advice specific to your situation. Data reflects widely-known public information as of early 2026.