Tool | Updated October 2018

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

The Empire State has a hefty income tax bite, and the property tax on the state’s median home value of $286,300 is $4,738, tying Rhode Island for 10th-highest in the U.S. But in some high-cost parts of the state, such as Westchester County, homeowners pay more than $17,000 in property taxes, which means they’ll be pinched even more by the new $10,000 cap on the federal deduction for state and local taxes.

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 $8,500 of taxable income for single filers and up to $17,150 for married couples filing jointly)

High: 8.82% (on taxable income over $1,070,550 for single filers and over $2,155,350 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: $0.46 per gallon (Varies by county; value provided reflects a weighted average.).
Diesel: $0.45 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 $286,300 is $4,738. 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

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

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

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

18.30%

Inheritance and Estate Taxes

Estates exceeding $5,250,000 are subject to estate tax, with a top rate of 16%. Starting Jan. 1, 2019, it will rise to $5.49 million, which was the federal threshold before Congress increased the exemption as part of the Tax Cuts and Jobs Act. After that, the threshold will be adjusted annually for inflation.

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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