NYC Has Its Own Income Tax — And Most People Misunderstand It
If you live in any of the five boroughs — the Bronx, Brooklyn, Manhattan, Queens, or Staten Island — you pay three layers of income tax: federal, New York State, and New York City. The city layer is easy to overlook because it is computed on your New York State resident return (Form IT-201), not on a separate city return. The New York State Department of Taxation and Finance lists NYC resident tax as one of the additions you report directly on IT-201, lines 47-48 (tax.ny.gov).
Three facts most filers get wrong:
The Official NYC Tax Rate Schedule (2025)
New York City has not changed its four-bracket schedule in years, and it is the same schedule the state publishes in the Form IT-201 instructions (IT-201-I, tax.ny.gov). NYC taxable income up to $65,000 is computed from the tax tables; at $65,000 and above you use the rate schedule below.
Single and married filing separately — filing status ① and ③
| If NYC taxable income is: | The tax is: |
|---|---|
| $0 – $12,000 | 3.078% of the amount |
| $12,000 – $25,000 | $369 + 3.762% of the excess over $12,000 |
| $25,000 – $50,000 | $858 + 3.819% of the excess over $25,000 |
| Over $50,000 | $1,813 + 3.876% of the excess over $50,000 |
Married filing jointly and qualifying surviving spouse — filing status ② and ⑤
| If NYC taxable income is: | The tax is: |
|---|---|
| $0 – $21,600 | 3.078% of the amount |
| $21,600 – $45,000 | $665 + 3.762% of the excess over $21,600 |
| $45,000 – $90,000 | $1,545 + 3.819% of the excess over $45,000 |
| Over $90,000 | $3,264 + 3.876% of the excess over $90,000 |
Head of household — filing status ④
| If NYC taxable income is: | The tax is: |
|---|---|
| $0 – $14,400 | 3.078% of the amount |
| $14,400 – $30,000 | $443 + 3.762% of the excess over $14,400 |
| $30,000 – $60,000 | $1,030 + 3.819% of the excess over $30,000 |
| Over $60,000 | $2,176 + 3.876% of the excess over $60,000 |
For incomes under $65,000, the city's tax tables (rather than these formulas) apply, which can produce slightly different cents-level results.
Worked Examples
Single filer, $100,000 salary
Say a single NYC resident finishes with $80,000 of NYC taxable income after the city's deduction and exemption amounts. The city tax is $1,813 + 3.876% × ($80,000 − $50,000) = $2,976. On a full $100,000 of NYC taxable income the tax would be $1,813 + 3.876% × $50,000 = $3,751 — an effective city rate of about 3.75%.
Married couple, $150,000 joint income
With $130,000 of NYC taxable income filing jointly: $3,264 + 3.876% × ($130,000 − $90,000) = $4,814.
What the total stack looks like
A single filer with $100,000 of taxable income pays roughly $5,432 to New York State (2025 schedule) plus $3,751 to the city — $9,183 of state-and-city income tax before federal tax. That combined 9.2% effective load is why our main calculator shows the city layer separately from the state layer: they are different computations, and the city amount is not a flat percentage of what you owe the state.
| Filer (single) | NYC taxable income | NYC tax | Effective rate |
|---|---|---|---|
| $40,000 salary | ~$32,000 | ~$1,125 | ~2.8% |
| $100,000 salary | ~$80,000 | ~$2,976 | ~3.0% |
| $250,000 salary | ~$220,000 | ~$8,402 | ~3.4% |
Effective rates look low because the city's four brackets top out at 3.876% — but remember this is on top of the state's 4%-6.85% (and 9.65%-10.9% at the very top).
How the NYC Tax Is Actually Filed
Deductions Work Differently at the City Level
The city computation does not simply reuse your federal itemized deductions. NYC starts from your New York adjusted gross income and applies its own standard deduction amounts and dependent exemptions from the IT-201 worksheet. That's why two filers with the same federal taxable income can owe different city tax: the city's taxable income is computed independently.
Credits That Reduce the City Tax
Who Does NOT Pay NYC Income Tax
The MCTMT: The Tax Self-Employed New Yorkers Forget
If you are self-employed (including partners) with net earnings attributable to the Metropolitan Commuter Transportation District — NYC plus the surrounding counties — you may owe the Metropolitan Commuter Transportation Mobility Tax (MCTMT) on top of everything else. The filing threshold is $50,000 of net earnings for tax years 2025 and prior, rising to $150,000 for tax year 2026 and after (tax.ny.gov). Rates run from 0.26% to 0.594% depending on income, computed separately for Zone 1 and Zone 2. If you freelance in the city, this is the line most often missed.