Tool | August 2016

State-by-State Guide to Taxes

Compare state tax rates and rules -- on income, ordinary purchases, gas, "sin" products, property, and more -- across the U.S.

New York

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The Bottom Line
Map of New York

Least Tax-Friendly

Income, property and sales tax are all high, and New York's cigarette tax is the highest in the country. Those combine to make the Empire State one of Kiplinger's top ten least tax-friendly states.

Sales Tax

4% state levy. Localities can add as much as 4.88%, and the average combined rate is 8.49%, according to the Tax Foundation. In the New York City metro area, there is an additional 0.375% sales tax to support transit. Clothing and footwear that cost less than $110 (per item or pair) are exempt from sales tax.

Income Tax Range

Low: 4.0% (on up to $8,450 of taxable income for single filers and up to $17,050 for married couples filing jointly)

High: 8.82% (on taxable income over $1,070,350 for single filers and over $2,140,900 for married couples filing jointly) New York allows localities to impose an income tax; the average levy is 2.11%, per the Tax Foundation.

See Kiplinger.com’s Retiree Tax Map to learn how New York taxes Social Security income and other forms of retirement income.

Motor Fuel Taxes

Gasoline: $0.43 per gallon (Varies by county; value provided reflects a weighted average.).
Diesel: $0.42 per gallon (Varies by county; value provided reflects a weighted average.).

Property Taxes

The median property tax on New York's median home value of $279,100 is $4,703. See Kiplinger.com’s Retiree Tax Map for details on tax breaks for seniors in New York.

Vehicle Taxes

Sales tax is due on purchases. Some counties also charge a tax based on the weight of the vehicle.

Sin Taxes

Beer: $0.14 per gallon
Wine: $0.30 per gallon
Liquor: $6.44 per gallon

Cigarettes and little cigars: $4.35 per pack, the country’s highest tax (in New York City, an extra $1.50 per pack)
Snuff: $2 per container one ounce or less, $2 per ounce for larger containers
Cigars and other tobacco products: 75% of the wholesale price

Travel Taxes

Hotel: There is no statewide lodging tax, but municipalities can levy lodging taxes. Sales tax is due. New York City hotels add a unit fee of $1.50 per day.
Rental cars: A 6% tax is levied in addition to sales tax. The New York City metro area adds another 5%.
Commercial parking is taxed at 10.4% in New York City, with Manhattan adding another 8%.

Taxes On Wireless Service

17.9%

Inheritance and Estate Taxes

Estates exceeding $4,187,500 are subject to estate tax in fiscal year 2016-2017, with a top rate of 16%. Each fiscal year, the exemption will rise by $1,062,500 each April 1 until it reaches $5,250,000 in 2017. Starting Jan. 1, 2019, it will be indexed to the federal exemption then in place. There is no inheritance tax.

But, the state estate tax is a "cliff tax." That means if the value of the estate is more than 105% of the current exemption, the exemption won't be available and the entire estate will be subject to state estate tax.

Oddball Tax

If your bagel shop slices a bagel, even if they don’t put anything on it, that action makes it a prepared food subject to sales tax.

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