New York state income tax is levied on earned and unearned income, such as wages, salaries, tips, interest, dividends, and capital gains. New York State Income Tax rate ranges from 4% to 10.9%, and brackets vary depending on filing status and taxable income. New York City and Yonkers residents also pay local income taxes in addition to state income tax. A few notable changes to the state’s tax laws in 2024 include a temporary increase in the corporate rate and a freeze on the capital base tax rate. Both are effective for tax years beginning Jan. 1, 2021, and ending Dec. 31, 2024.
Who Must Pay New York State Income Tax?
You’ll need to file a New York state income tax return if your combined federal and New York additions exceed $4,000. Nonresidents with New York-source income must also file. You can choose to claim a standard deduction or itemize deductions, such as medical expenses, mortgage interest, job-related expenses and charitable contributions. New York also imposes several credits, including the STAR and Enhanced STAR programs that reduce school property taxes for eligible homeowners.
How to Pay New York State Income Tax?
You can pay online, by phone or in person. If you have a New York Online Services account, you can set up recurring payments for free or pay with a credit card for a fee. You can also view and respond to department notices It’s a good idea to review your tax situation periodically and keep records organized. This helps you understand your current financial situation and determine the right amount of taxes withheld from your paycheck. Keeping up to date on changes in tax laws, rates, and filing requirements is helpful, too. Using paid tax software can help you file your return quickly and easily.
New York State Income Tax Due Dates
New York state income tax due dates typically coincide with federal deadlines. If you file a business or personal income tax return late, you may face a penalty and interest charges.
For individuals, the filing due date for the 2021 tax year is April 18. If you need more time to file your return, you can request an automatic six-month extension using our online personal income tax extension service. However, you must pay any tax owed by the April 18 due date.