If you live in New York City, you’ll need to pay city income tax in addition to state and federal income taxes.
How much is NYC personal income tax?
New York City income tax rates are between 3% to just under 4% depending on your income and filing status.
NYC does not have a 0% tax bracket for lower earners. However, most state deductions apply to city taxes, and the tax is based on your taxable income rather than gross income.
New York City does have several income tax credits including
- NYC School Tax Credit
- NYC Household Credit
- NYC Earned Income Credit
- NYC Child and Dependent Care Credit
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NYC School Tax Credit
If you can’t be claimed as a dependent and have income up to $250,000, you may qualify for a $63 tax credit ($125 if filing jointly or as a qualifying widower),
If your income is up to $500,000, you may qualify for a partial credit.
NYC Household Credit
Low-income earners who can’t be claimed as dependents may qualify for a $15 tax credit with an additional amount for dependents.
NYC Earned Income Credit
If you qualify for the Federal Earned Income Credit, you may get a city credit equal to up to 5% of your federal credit.
NYC Child and Dependent Care Credit
If you qualify for the state child and dependent care credit and paid for childcare for at least one child under four, you may qualify for a credit equal to up to 75% of your state credit.
NYC Real Property Credit
There is no longer a city real property credit. It expired at the end of 2019.
Who pays New York City tax?
New York City income tax goes by where you live. If you live in the city, you pay city tax. If you live outside of the city, you don’t pay city tax.
NYC tax doesn’t go by where you work. If you live outside of the city and commute in, you don’t pay the tax. If you live in the city and work outside of it, you still pay city tax on your entire income.
Part-year residents who don’t live in the city pay a prorated city tax. It usually goes by how many days out of the year you lived in New York City.
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