2026 tax year · New York
Local income tax in New York
New York City unincorporated business tax is the most expensive of the New York levies we hold, $3,200 on $80,000, on top of federal and state tax.
A city income tax for New York City residents, a surcharge in Yonkers calculated on your state tax bill, and a separate 4% tax on self-employed profit earned in New York City.
No city tax on commuters since 1999, except a 4% tax on self-employed profit, which does reach them.
What the New York levies cost on $80,000
| Jurisdiction | How it is worked out | On $80,000 |
|---|---|---|
| New York City (residents) | four brackets from 3.078% to 3.876% of NYC taxable income | $2,976 |
| Yonkers (residents) | 16.75% of your New York STATE tax, $4,250 at this income, not of the income itself | $712 |
| New York City unincorporated business tax | 4% on unincorporated business income, sole proprietors and partnerships, and it reaches nonresidents | $3,200 |
Does it reach self-employment profit?
Yes. In New York the local tax reaches net profit from self-employment, not only wages. No employer withholds it, so it is on you to pay it, usually alongside your quarterly estimates, and it is routinely missed for exactly that reason.
What catches people out in New York
New York City has no income tax on people who work in the city but live outside it. The commuter tax was repealed in 1999 and has not come back.
There is an important exception if you work for yourself. The city’s Unincorporated Business Tax, 4% on the profits of sole proprietors and partnerships, does reach people who live outside the city, as long as the income comes from New York City. So a freelancer commuting in from New Jersey pays no city income tax on wages but can owe this on business profit.
Yonkers works differently again: its charge is 16.75% of your New York State income tax bill rather than a percentage of your income. It is the only tax on this site calculated on another tax.
What these words mean
- Sole proprietor
- Someone who works for themselves without forming a company. The default if you started working for yourself and never registered anything, you and the business are the same legal person for tax.
- Nonresident
- Someone who earns money in a place without living there. Most states and cities tax non-residents only on what they earned inside the boundary, and residents on everything.
Related
- Local income tax in every state
- 1099 taxes in New York
- Paycheck in New York
- Quarterly payments in New York
- S-corp election in New York
General information about how these taxes work, not tax advice. Local rates change by ordinance and referendum, confirm with your jurisdiction or a tax professional before acting on anything here.