New York income tax guide for individuals and businesses
A plain-English overview of New York individual and business taxes for 2026: rates, forms, deadlines, sales tax, payroll and multi-state rules, with CPA help when you need it.
New York at a glance
| Individual income tax | Graduated, top rate about 10.9% |
|---|---|
| Main resident return | Form IT-201 |
| Business taxes | Corporate franchise tax, graduated up to about 7.25%. Elective pass-through entity tax available. A payroll mobility tax applies in the New York City area. |
| Sales tax | About 4% state rate |
| Local taxes | New York City and Yonkers residents pay an additional city income tax. Counties and cities add to the 4% state sales tax. |
| Individual return due | April 15 |
| Tax agency | New York State Department of Taxation and Finance |
| Wage reciprocity | No wage reciprocity agreements are commonly listed for this state |
| "Convenience of the employer" rule | Yes. This state may tax a nonresident who works from home for an employer based here. |
Individuals
New York has a graduated individual income tax (about 10.9% at the top). Residents generally file Form IT-201 and start from their federal income.
Nonresidents and part-year residents who earn income from New York sources (for example wages for work performed in New York, rental property or a business here) generally file the nonresident or part-year version of the return or a schedule. Your home state normally gives a credit for tax paid to New York, so the same income is rarely taxed twice.
Good to know: New York applies a "convenience of the employer" rule to nonresidents who work from home for a New York employer.
Businesses
Entity-level taxes: Corporate franchise tax, graduated up to about 7.25%. Elective pass-through entity tax available. A payroll mobility tax applies in the New York City area.
Pass-through businesses. S corporations, partnerships and most LLCs pass income to their owners, who report it on personal returns. Many states, including a large number of those that tax income, offer an elective pass-through entity tax (PTET) that can help work around the federal limit on deducting state taxes. Ask us whether it fits New York and your situation.
Sales tax. About 4% state rate. New York City and Yonkers residents pay an additional city income tax. Counties and cities add to the 4% state sales tax. After the Wayfair decision, out-of-state sellers can owe sales tax once their sales into New York pass the state's threshold, even with no office there.
Payroll. Employers must register for state income tax withholding (where the state has an income tax) and for state unemployment insurance before the first payroll, and report new hires. Workers' compensation insurance is also required in most cases.
Annual filings. Most states also require corporations and LLCs to file a yearly report or pay a fee to the Secretary of State.
Working in more than one state
New York is not commonly listed as having wage reciprocity with other states, so people who live in one state and work in another usually file nonresident returns and claim a credit at home.
New York applies a "convenience of the employer" rule: wages of a nonresident who works remotely for an employer based in New York can be taxed here for days worked from home, unless the employer required the remote work.
Working or living in more than one state, or moving during the year? See our multi-state tax guide.
Compliance calendar snapshot
| When | What |
|---|---|
| January 15, April 15, June 15, September 15 | Federal estimated tax payments. Most states with an income tax follow similar dates. |
| April 15 | New York individual return due date (calendar-year filers) |
| Monthly or quarterly, usually the 20th of the next month | State sales tax returns and payroll withholding deposits, depending on volume |
| Quarterly (end of month after quarter) | State unemployment insurance and withholding reconciliation returns |
| Yearly, on the entity's anniversary or by a fixed date | Secretary of State annual report or franchise fee |
Common questions
What is the New York income tax rate for 2026?
New York has graduated rates with a top rate of about 10.9%. Rates, brackets and credits change, so confirm with the New York State Department of Taxation and Finance.
Which form do I file for New York income tax?
Residents generally file Form IT-201. Nonresidents and part-year residents use the nonresident or part-year version or a schedule. The state agency's website has the current forms and instructions.
Do I need to file a New York return if I live in another state?
If you earned income from New York sources (wages for work performed here, rental property, or a business or partnership interest), you may need to file in New York even if you live elsewhere. Your home state usually gives a credit for tax paid to another state.
Does New York have reciprocity with other states?
New York is not commonly listed as having wage reciprocity. Reciprocity applies only to wages and there are exceptions, so confirm before you stop withholding.
What business taxes apply in New York?
Corporate franchise tax, graduated up to about 7.25%. Elective pass-through entity tax available. A payroll mobility tax applies in the New York City area. Sales tax, payroll withholding and unemployment insurance may also apply.
General information only, for tax year 2026. Rates, forms and rules change and have many exceptions. Confirm with the state agency or contact us before you act. Rates shown are approximate top or flat rates.
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