Personal income tax
New York collects state income taxes using a progressive, eight-bracket system.
For single taxpayers:
- 4 percent on the first $8,300 of taxable income.
- 4.5 percent on taxable income between $8,301 and $11,450.
- 5.25 percent on taxable income between $11,451 and $13,550.
- 5.9 percent on taxable income between $13,551 and $20,850.
- 6.45 percent on taxable income between $20,851 and $78,400.
- 6.65 percent on taxable income between $78,401 and $209,250.
- 6.85 percent on taxable income between $209,251 and $1,046,350.
- 8.82 percent on taxable income of more than $1,046,351.
Empire State income tax forms are due April 15 or the next business day if that date falls on a weekend or holiday.
New York City has its own tax rates and brackets.
The state's earned income credit has increased to 30 percent of the federal credit. The credit helps taxpayers offset increases in living expenses and Social Security taxes, reduces taxes owed and in some cases can even provide a refund to filers who do not owe any tax. File Form IT-215, Claim for Earned Income Credit.
New York's additional 0.25 percent sales and use tax rate expired on June 1, 2005, lowering the state's tax rate to 4 percent.
The types of property and services subject to sales tax within the Empire State are many and varied.
Local sales taxes also might be added.
Clothing and footwear sold for less than $110 is exempt from state sales tax, as well as exempt from the 0.375 percent sales tax imposed in the Metropolitan Commuter Transportation District.
Details on New York state sales taxes can be found in Publication 750.
Personal and real property taxes
Real property in New York is taxed based on its value. Counties, cities, towns, villages, school districts and special districts each raise money through the real property tax to pay for local services. The amount of a particular property's tax bill is determined by the property's taxable assessment and the tax rates of the taxing jurisdictions in which the property is located.
New York State law provides that every property in most municipalities be assessed at a uniform percentage of value. That percentage can be 5 percent, 10 percent, 50 percent or any other percentage not exceeding 100 percent. It does not matter what percentage is used, but that every property is assessed at the same uniform percentage within one assessing unit.
The School Tax Relief, or STAR, program is a partial exemption from school property taxes for owner-occupied primary residences. STAR works by exempting a portion of the full value of their homes from school taxes. The Enhanced STAR exemption is available for the primary residences of senior citizens (age 65 and older) with yearly household incomes not exceeding the statewide standard.
To apply for STAR, contact your local property assessor.
New York residents may also be eligible to claim the Real Property Tax Credit for Homeowners and Renters. Applicants must file Form IT-214.
Inheritance and estate taxes
New York has no inheritance tax.
An estate is required to file a New York State estate tax return if the total of the federal gross estate plus the federal adjusted taxable gifts and specific exemption exceed the basic exclusion amount, and the individual was either a New York resident at the time of death or a U.S. resident or citizen whose estate included real or tangible personal property located in New York.
The basic exclusion amount, or BEA, is adjusted each year. For deaths between April 1, 2014, and March 31, 2015, the BEA is $2,062,500. The BEA increases to $3,125,000 for deaths between April 1, 2015, and March 31, 2016.
Other New York tax facts
At New York's Online Tax Center, taxpayers can view and pay tax bills, including estimated taxes; view and reconcile estimated income tax accounts; file a state sales tax no-tax-due return; and upload wage reporting.
New York taxpayers can check the status of their refunds by using the New York State Department of Taxation and Finance's online refund tracker.
New York taxpayers can learn about their rights in Publication 131.