New York City imposes its own income tax on top of the New York State income tax. This tax applies to individuals who live in New York City.
The tax rate varies based on income level and ranges from 3.078% to 3.876%.
If you are required to file a New York State income tax return and you lived or worked in New York City, you must file a separate New York City income tax return using Form NYC-204. You can file this return electronically through the New York State Department of Taxation and Finance website or by mail.
Here are some additional details about New York City income tax:
Who has to file a New York City tax return?
You may need to file a New York City income tax return if:
- You are a New York City resident with taxable income
- You are a nonresident of New York City with income from New York City sources
- You are a part-year resident with both New York City and outside New York City income
- You are required to file a New York State income tax return and you lived or worked in New York City for any length of time during the tax year
Additionally, even if you’re not an NYC resident and don’t owe taxes, your employer will often withhold city taxes. You’ll need to file a city tax return to get a refund.
What is considered New York City income?
New York City income includes:
- Wages, salaries, tips, and other employee compensation for work performed in New York City
- Self-employment income earned in New York City
- Rental income from property located in New York City
- Income from a business, trade, profession, or occupation carried on in New York City
- Capital gains from the sale of property located in New York City
- Income from New York City lottery winnings and prizes.
How to pay New York City income tax?
You can pay New York City income tax online through the New York State Department of Taxation and Finance website using a credit or debit card, or by electronic check. You can also pay by mail using a check or money order.
When are New York City tax returns due?
New York City tax returns are due on the same day as your New York State tax return, which is usually April 15th. However, if the 15th falls on a weekend or holiday, the deadline is extended to the next business day.
What happens if you don’t file?
If you fail to file your New York City tax return on time, you may be subject to penalties and interest. The penalty for failure to file is 5% of the tax due for each month or part of a month that the return is late, up to a maximum of 25%. Interest is also charged on any unpaid tax.
It’s important to note that New York City income tax is separate from New York State income tax and must be filed separately, even though both taxes are filed through the same form.