New York · the numbers
New York figures at a glance, 2026
The New York numbers for the 2026 return in one place: the nine rates and where they start, the standard deduction, the dependent exemption, the pension exclusion, the New York City and Yonkers rates, the credits, the estimated-tax rules, the dates, and the short list of what changed from 2025. For anyone who files here, and for anyone checking a preparer’s work.
By Charles Trautman, EA, editor
Need to Know Tax · written from New York State Department of Taxation and Finance sources, November 3, 2026; updated November 12, 2026 after the election · not yet reviewed by a New York practitioner
Most New York figures do not move from year to year. The bracket thresholds, the standard deduction, the $1,000 dependent exemption, the $20,000 pension exclusion and the 529 subtraction are fixed in statute and not indexed, so they are the same as last year. What did move for 2026: the five lowest rates fell 0.1 point each, the Empire State child credit for children 4 through 16 rose from $330 to $500, a $25,000 tip subtraction appeared, the child care credit was rebuilt, and the estate tax exclusion rose to $7,350,000. The New York State Department of Taxation and Finance has confirmed the new rates in its 2026 withholding publication; the 2026 IT-201 instructions are not yet out, so anything the Department has not printed carries a verify mark below.
The core figures
| Item | 2025 | 2026 |
|---|---|---|
| Starting point | Federal AGI | Federal AGI |
| Lowest rate | 4.0% | 3.9% |
| Rate on most middle incomes (to $80,650 single / $161,550 joint) | 5.5% | 5.4% |
| Top rate (over $25 million) | 10.9% | 10.9% |
| Standard deduction, single or married filing separately | $8,000 | $8,000 |
| Standard deduction, married filing jointly or surviving spouse | $16,050 | $16,050 |
| Standard deduction, head of household | $11,200 | $11,200 |
| Standard deduction, single and claimed as a dependent | $3,100 | $3,100 |
| Personal exemption | None | None |
| Dependent exemption, each | $1,000 | $1,000 |
| Social Security and Tier 1 railroad retirement | Fully subtracted | Fully subtracted |
| Pension and annuity exclusion at 59½, per person | $20,000 | $20,000 |
| New York State, local and federal government pensions | Fully subtracted | Fully subtracted |
| Tip subtraction | None | Up to $25,000 |
| Overtime, senior and car-loan deductions | None | None |
| 529 contribution subtraction, single / joint | $5,000 / $10,000 | $5,000 / $10,000 |
| New York AGI above which the tax benefit recapture begins | $107,650 | $107,650 |
| Itemized deduction | Own schedule, IT-196 | Own schedule, IT-196 |
The standard deduction, exemption, exclusion and 529 figures are from the 2025 IT-201 instructions; no law changed them for 2026, and the 2026 instructions are to come. New York’s standard deduction has not been indexed in years, which is why a single filer’s $8,000 is half the federal figure.
The rate schedule
| Rate | Single and married filing separately | Married filing jointly and surviving spouse | Head of household |
|---|---|---|---|
| 3.9% | $0 to $8,500 | $0 to $17,150 | $0 to $12,800 |
| 4.4% | $8,500 to $11,700 | $17,150 to $23,600 | $12,800 to $17,650 |
| 5.15% | $11,700 to $13,900 | $23,600 to $27,900 | $17,650 to $20,900 |
| 5.4% | $13,900 to $80,650 | $27,900 to $161,550 | $20,900 to $107,650 |
| 5.9% | $80,650 to $215,400 | $161,550 to $323,200 | $107,650 to $269,300 |
| 6.85% | $215,400 to $1,077,550 | $323,200 to $2,155,350 | $269,300 to $1,616,450 |
| 9.65% | $1,077,550 to $5,000,000 | $2,155,350 to $5,000,000 | $1,616,450 to $5,000,000 |
| 10.3% | $5,000,000 to $25,000,000 | $5,000,000 to $25,000,000 | $5,000,000 to $25,000,000 |
| 10.9% | Over $25,000,000 | Over $25,000,000 | Over $25,000,000 |
Rates on the five lowest brackets are confirmed on Publication NYS-50-T-NYS (1/26), which cites Chapter 59 of the Laws of 2025, Part A. Dollar thresholds are the unindexed figures from the 2025 rate schedule; head of household thresholds are from secondary sources until the 2026 IT-201 instructions post. Above $107,650 of New York AGI the “tax benefit recapture” gradually replaces the lower rates with the filer’s top rate on all taxable income, so the schedule overstates how progressive the tax is at the top. The 2027 rates on the five lowest brackets are scheduled to be 3.8%, 4.3%, 5.05%, 5.3% and 5.8% (verify); the 9.65%, 10.3% and 10.9% rates run through 2032.
New York City and Yonkers
| Tax | Who pays | Rate |
|---|---|---|
| New York City resident tax | City residents only; commuters owe nothing to the city | 3.078% to $12,000 of city taxable income (single; $21,600 joint; $14,400 head of household), 3.762% to $25,000 ($45,000; $30,000), 3.819% to $50,000 ($90,000; $60,000), 3.876% above (verify thresholds) |
| New York City school tax credit | City residents with income of $250,000 or less | $125 joint / $63 other, plus a rate reduction amount (verify) |
| Yonkers resident surcharge | Yonkers residents | 16.75% of net New York State tax (IT-201 line 55) |
| Yonkers nonresident earnings tax | Nonresidents working in Yonkers | 0.50% of wages and self-employment earnings there (Form Y-203) |
| MCTMT on self-employment (twelve-county MTA region) | Self-employed with net earnings over the threshold | 0.60% in the five city counties, 0.34% in the seven suburban counties; threshold $150,000 per zone under the FY2026 budget, $50,000 in the 2025 instructions (verify effective date) |
The Department confirmed that the city withholding tables did not change for 2026. No other New York county, city or school district taxes income.
The credits
| Credit | Figure | Refundable? | Limits |
|---|---|---|---|
| Earned income credit (IT-215) | 30% of the federal EITC, less any household credit | Yes, full-year residents | Federal EITC limits |
| Empire State child credit (IT-213) | $1,000 per child under 4; $500 per child 4 through 16 (was $330) | Yes | Full-year residents; reduced $16.50 per $1,000 of federal AGI over $110,000 joint, $75,000 single or head of household, $55,000 married filing separately |
| Child and dependent care credit (IT-216) | 55% of capped expenses at New York AGI of $15,000 or less, sliding to a 4% floor; caps $3,000 to $9,000 by number of qualifying persons | Yes | Reduced $20 per $1,000 of New York AGI over $750,000; generally not married filing separately; 2026 table to come |
| Household credit (IT-201 line 40) | $20 to $75 single under $28,000 of federal AGI; joint table ends at $32,000 (verify) | No | As stated |
| Real property tax credit (IT-214) | Up to $75 under 65, $375 if a household member is 65 or older (verify) | Yes | Federal AGI $18,000 or less; home value $85,000 or less or rent $450 a month or less (verify) |
| College tuition credit or deduction (IT-272) | Credit up to $400 per student, or an itemized deduction up to $10,000 per student | Credit yes | Full-year residents for the credit |
| Resident credit (IT-112-R) | Tax paid to another state or locality on income New York also taxes | No | Not for interest, dividends or gambling winnings |
| Long-term care insurance credit (IT-249) | 20% of premiums | No | |
| POWER energy rebate credit (2026 only) | $200 / $150 joint, $100 other, by 2024 New York AGI | Yes, paid in advance by check in fall 2026 | 2024 NY AGI $300,000 joint / $150,000 other |
New York City adds its own EITC (10% to 30% of the federal credit), a child and dependent care credit for a child under 4, a household credit and a low-income credit with thresholds indexed from 2026 (to come). Those are in the families article.
Worked example: what the rate cut is worth to a middle-income couple
Married filing jointly, two children, New York AGI $106,050, which is under the $107,650 recapture line. Standard deduction $16,050 and two $1,000 dependent exemptions leave $88,000 of New York taxable income. Same income in each year.
| 2025 | 2026 | 2027 (scheduled) | |
|---|---|---|---|
| First $17,150 | $686.00 at 4.0% | $668.85 at 3.9% | $651.70 at 3.8% |
| $17,150 to $23,600 ($6,450) | $290.25 at 4.5% | $283.80 at 4.4% | $277.35 at 4.3% |
| $23,600 to $27,900 ($4,300) | $225.75 at 5.25% | $221.45 at 5.15% | $217.15 at 5.05% |
| $27,900 to $88,000 ($60,100) | $3,305.50 at 5.5% | $3,245.40 at 5.4% | $3,185.30 at 5.3% |
| New York State tax before credits | $4,507.50 | $4,419.50 | $4,331.50 |
| Saving against the prior year | $88 | $88 | |
| Empire State child credit, children aged 3 and 9, federal AGI $106,050 | $1,330 | $1,500 | $1,500 |
The rate cut saves exactly $1 per $1,000 of taxable income for anyone whose income stays in the first four brackets, $88 here, and the same again in 2027. The child credit change is worth twice as much to this family. The 2027 column uses the scheduled rates, which the Department has not yet printed (verify).
Paying in
| Item | Figure |
|---|---|
| Estimated tax required when | $300 or more of New York State, $300 of New York City or $300 of Yonkers tax is expected after withholding and credits |
| Safe harbor | 90% of 2026 tax, or 100% of 2025 tax; 110% of 2025 tax if 2025 New York AGI was over $150,000 ($75,000 married filing separately) |
| Estimated payment dates | April 15, June 15 and September 15, 2026; January 15, 2027 |
| Withholding form | IT-2104 (covers state, city and Yonkers); IT-2104-P for pensions, which payers are not required to withhold on |
| Return due | April 15, 2027 |
| Extension | Six months to October 15, 2027, if requested by April 15 on IT-370 or online; tax must be paid with the request |
Dates, forms and the extension rules in detail are in the calendar and forms article.
Beyond the income tax
| Item | 2026 |
|---|---|
| Estate tax basic exclusion | $7,350,000 for deaths in 2026 ($7,160,000 in 2025; 2027 to come); top rate 16% (verify); an estate more than about 105% of the exclusion loses all of it (verify); no portability; gifts within three years of death added back; no inheritance or gift tax |
| Basic STAR income limit | $500,000 for the credit, $250,000 for the exemption; no age test |
| Enhanced STAR income limit, 65 and older | $110,750 for 2026 benefits (2024 return); $113,550 for 2027; income is federal AGI minus taxable IRA distributions |
| Senior citizens property tax exemption (local option) | 5% to 50% of assessed value for owners 65 and older under a local income ceiling of up to $58,400 (verify) |
| State sales tax | 4%, plus local rates; 8.875% in New York City; clothing and footwear under $110 exempt from the state 4% |
| Free File income limit | $89,000 of federal AGI for 2025 returns; 2026 limit to come |
What changed from 2025
- Rates on the five lowest brackets down 0.1 point each: 3.9%, 4.4%, 5.15%, 5.4%, 5.9%. Another 0.1 point scheduled for 2027. Top three rates extended through 2032.
- Tip subtraction, up to $25,000, matching the federal deduction, new on IT-225. No subtraction for overtime, the senior deduction or car loan interest.
- Empire State child credit: $500 per child 4 through 16, up from $330. Under 4 stays $1,000.
- Child and dependent care credit rebuilt: 55% of capped expenses down to a 4% floor, replacing the percentage-of-federal formula.
- POWER energy rebate of $100 to $200 by check in fall 2026, not New York income.
- Decoupling from federal 100% expensing of qualified production property and research costs, retroactive to 2025.
- Estate tax exclusion up $190,000 to $7,350,000.
- Enhanced STAR limit $110,750, from $107,300 for 2025 (verify).
- Unchanged: bracket thresholds, standard deduction, dependent exemption, pension exclusion, 529 limits, New York City and Yonkers rates, EITC percentage.
Behind the scenes: why so little is indexed
New York indexes almost nothing. The bracket thresholds have been carried forward unchanged for years while the rates on them were adjusted; the standard deduction has sat at $8,000 and $16,050 for many years; the $20,000 pension exclusion is decades old. The legislature prefers to legislate changes one at a time, as it did with the rate cut and the child credit, rather than let a formula move them. The result is quiet bracket creep: a raise that only keeps pace with prices still pushes more income into the 5.4% and 5.9% bands, and the 0.1-point cuts for 2026 and 2027 give some of that back without ever naming it.
The one place the state does index is outside the income tax. The estate tax exclusion moves each year with the federal exclusion as it stood in 2017, which is how it reached $7,350,000, and the Enhanced STAR limit moves with a cost-of-living factor. The New York City low-income credit joins that short list in 2026.
What to bring
- Last year’s IT-201, to compare the tax line against the same taxable income
- W-2s showing tips, for the new subtraction, and showing New York City or Yonkers withholding if either applies
- 1099-R forms, with the payer identified, so government pensions can be separated from private ones
- Dates of birth for each child, for the $1,000 or $500 credit
- Child care provider statements, for the rebuilt IT-216
- 529 contribution statements from New York’s 529 College Savings Program
- Estimated payment confirmations from Online Services, with dates
- Property tax bills and the STAR credit amount received, if itemizing on IT-196
Questions people ask
What is the New York standard deduction for 2026?
$8,000 single or married filing separately, $16,050 married filing jointly or surviving spouse, $11,200 head of household, and $3,100 for a single filer claimed as someone else’s dependent. No law changed these for 2026, and they are not indexed, so they match 2025.
What are the New York tax brackets for 2026?
Nine rates from 3.9% to 10.9%. A single filer pays 3.9% on the first $8,500 of taxable income and 5.4% on the slice from $13,900 to $80,650; a joint return pays 5.4% from $27,900 to $161,550. The full schedule is in the table above.
Does New York tax Social Security?
No, at any age and any income. Government pensions are also fully exempt, and the first $20,000 per person of private pensions, IRAs and 401(k)s is exempt from age 59½. See the retirees article.
How much is the New York child credit for 2026?
$1,000 for each child under 4 and $500 for each child 4 through 16, before the phase-out that starts at $110,000 of federal AGI joint and $75,000 single or head of household. Full-year residents only.
Do I pay New York City tax if I work in Manhattan but live in New Jersey or on Long Island?
No. Only city residents pay the city tax. A Long Island commuter pays New York State tax; a New Jersey commuter pays New York State tax on New York wages and takes a credit on the New Jersey return. Neither pays the city.
What is the estate tax exemption in New York for 2026?
$7,350,000 for deaths in 2026, with no portability between spouses and a cliff: an estate more than about 5% over the line is taxed on everything, not just the excess. The three-year gift add-back applies. See the federal gift and estate tax article for the federal exemption.
Nine rates, five of them a tenth lower, and almost nothing else moved
Check the tax line against last year’s, the child credit against each child’s age, and the W-2 for tips.
Written by Charles Trautman, EA, editor · Need to Know Tax, Lone Tree, Colorado
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Forms and official pages named in this article
Sources and where to check
- Department of Taxation and Finance, Publication NYS-50-T-NYS (1/26): 2026 rates under Chapter 59 of the Laws of 2025
- Department of Taxation and Finance: Instructions for Form IT-201 (2025): standard deduction, dependent exemption, pension exclusion, 529 subtraction, $107,650 threshold, MCTMT and Yonkers rates
- Department of Taxation and Finance: 2025 tax tables and rate schedules, which table applies
- Department of Taxation and Finance: Who must make estimated tax payments ($300 rule, 90%/100%/110% safe harbors)
- Department of Taxation and Finance: Empire State child credit
- Department of Taxation and Finance: Apply for an extension of time to file
- Department of Taxation and Finance: Free e-file options
- Hodgson Russ: Tax provisions of the enacted 2026–27 New York budget
- Governor’s office, May 9, 2025: FY2026 budget rate cut and child credit