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New York City residents pay a city income tax in addition to the state's, at rates that climb with income. For a middle-income worker it typically adds around 3.5% of taxable income — enough that a city resident's combined marginal rate lands well into double digits.

Crucially, the city tax follows residence rather than workplace. Someone living in Manhattan and commuting to New Jersey still owes New York City tax; someone living in Westchester and working in Midtown does not. Yonkers operates differently again, charging residents a surcharge calculated as a percentage of their state tax liability, and applying a smaller earnings tax to non-residents who work there.

This is why two colleagues on identical salaries at the same office can take home noticeably different amounts. When comparing offers in the New York area, the borough or county you plan to live in matters nearly as much as the salary.

New York applies one of the most aggressive remote-work tax rules in the country. Under the convenience of the employer doctrine, if you work for a New York employer and you work from home for your own convenience rather than because your employer requires it, New York treats those days as New York workdays and taxes the income.

In practice this means a fully remote employee living in another state, working for a New York company, can owe New York income tax on all of their salary — despite never entering the state in a given year. Your home state will generally give a credit for tax paid to New York, so you are not usually taxed twice, but if your home state's rate is lower you effectively pay New York's higher rate.

The exception is narrow: the work must be performed at a genuine bona fide employer office, not simply at your kitchen table by arrangement. If you moved out of state and kept a New York job, this is the single most important thing to check with a tax professional.

New York funds Paid Family Leave entirely through employee contributions. For 2026 the rate is 0.432% of gross wages, capped once earnings reach the statewide average wage — roughly $95,300 — producing a maximum annual contribution of about $412. It appears on every payslip and is separate from state income tax.

New York also operates a statutory short-term disability programme, funded by a small employee contribution capped at a nominal weekly amount, which is why the disability line on a New York payslip is usually trivial.

On the income tax itself, New York's brackets are relatively gentle in the middle: the 5.9% band covers a wide span of ordinary salaries before the 6.85% rate begins above $215,400. The state's high-rate reputation comes largely from its top bands and from New York City tax, rather than from what a typical worker pays to Albany.