The High-Income NY Tax Challenge
Earning $200,000+ in New York means facing combined marginal tax rates that can exceed 46%.
Strategy 1: Maximize All Tax-Advantaged Accounts
Combine 401(k) ($24,500), Backdoor Roth IRA ($7,500), and HSA ($8,750 family) for $40,000+ in personal tax-advantaged room — and over $100,000 per year including employer matches and mega backdoor Roth conversions.
Strategy 2: Deferred Compensation
Many high earners have access to deferred compensation plans.
Strategy 3: Charitable Giving Optimization
Use Donor-Advised Funds to bunch donations and donate appreciated stock.
Strategy 4: Tax-Efficient Investment Placement
Place tax-inefficient investments in tax-deferred accounts.
Strategy 5: S-Corp for Side Income
An S-Corp election can save 3-5% in self-employment taxes.
Strategy 6: Multi-State Planning
Days worked outside NY equals less NY tax.
Strategy 7: Real Estate Strategies
1031 exchanges and Opportunity Zones can defer capital gains.
Strategy 8: 529 Plan Superfunding
Contribute 5 years' worth at once ($95,000) to maximize growth.
Strategy 9: Estate Tax Planning
NY has its own estate tax with a $7.35 million exemption (2026).
Strategy 10: Work with Professionals
Professional advice often pays for itself in tax savings.
Use our NY tax calculator to model different scenarios.