State-by-State Guide to Taxes on Middle-Class Families
Tool | November 2021

New York State Tax Guide for Middle-Class Families

State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families.

New York

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The Bottom Line
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Least Tax-Friendly

New York's state income taxes are only average for middle-class taxpayers. However, New York City and Yonkers tack on their own income taxes, and there's a commuter tax for people working in and around New York City. Things start to get bad when you look at sales taxes. New York's average combined state and local sales tax rate is the 10th-highest in the country, according to the Tax Foundation. And then things go from bad to worse when property taxes are added to the mix. The average property tax rate in New York is tied for the six-highest in the nation.

Income Tax Range

Low: 4% (on up to $8,500 of taxable income for single filers and up to $17,150 for married couples filing jointly)

High: 10.9% (on taxable income over $25 million, regardless of filing status)

Beginning in 2028, the highest rate will decrease to 8.82% on taxable income over $1,077,550 for single filers and over $2,155,350 for married couples filing jointly.

New York City and Yonkers impose their own income tax. A commuter tax is also imposed on residents of New York City, as well as on residents of Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester Counties.

Sales Tax

4% state levy. Localities can add as much as 4.875%, and the average combined rate is 8.52%, according to the Tax Foundation. In the New York City metro area, there is an additional 0.375% sales tax to support transit.

Groceries: Exempt
Clothing: Exempt if under $110
Motor Vehicles: Taxable
Prescription Drugs: Exempt

Real Property Taxes

In New York, the median property tax rate is $1,692 per $100,000 of assessed home value.

Motor Fuel Taxes

Gasoline: 46.19¢ per gallon (varies by county; 46.89¢ per gallon effective January 1, 2022).
Diesel: 44.64¢ per gallon (varies by county; 45.34¢ per gallon effective January 1, 2022).

Sin Taxes

Cigarettes and little cigars: $4.35 per pack (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
Vapor products: 20% of retail price

Beer: $0.14 per gallon (New York City charges an additional $0.12 per gallon)
Wine: $0.30 per gallon
Liquor: $6.44 per gallon for liquor containing more than 24% alcohol by volume (New York City charges an additional $1 per gallon); $2.54 per gallon for liquor containing more than 2% but less than 24% alcohol by volume

Marijuana: Beginning April 1, 2022, distributors taxed at rate of five-tenths of one cent per milligram of THC for cannabis flower, eight-tenths of one cent per milligram of THC for concentrated cannabis, and three cents per milligram of THC for cannabis edible products; 9% state tax on retail sales; 4% local tax on retail sales may also apply

Annual Car Taxes and Fees

No annual vehicle tax or fee is imposed.

Estate and Inheritance Taxes

For 2021, estates exceeding $5.93 million are subject to New York's estate tax (the exemption threshold is adjusted each year for inflation). Taxable gifts made by the decedent as a New York resident within three years prior to death are included as part of the estate. Tax rates range from 3.06% to 16%.

The New York 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.


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