Akash Sharma CPA

New York State Tax Bracket and Deadline – How To File in 2023

How to File NY State Tax 2023

New York provides multiple opportunities to the people around it and changes the lives of many. However, New York is an expensive place to live. Another negative factor is that the people living and earning there have to pay state income taxes. Yes, you read it right. Unlike many other states in the USA, individuals have to file their NY state tax. In the following post, we will discuss how to file taxes in new york 2023 that you should be aware of that will help you at the time of filing.

NY State Tax Rate and Bracket

Similar to the federal income tax structure is New York State’s progressive income tax system. Since the New York state income tax is progressive, which means those with higher incomes pay higher rates. There are ten different tax brackets, which change depending on your income and filing status.

You might have to pay other taxes if you live in the Empire State in addition to state income taxes. Therefore, the personal income tax that New York City and Yonkers residents pay is higher than that of residents of other cities in the state.

State Income Tax Brackets – Single Filers

Here is the tax rate and income range for single filers in New York state.

Tax RateTaxable Income
4.00%$0 – $8,500
4.50%$8,500 – $11,700
5.25%$11,700 – $13,900
5.90%$13,900 – $21,400
5.97%$21,400 – $80,650
6.33%$80,650 – $215,400
6.85%$215,400 – $1,077,550
9.65%$1,077,550 – $5,000,000
10.30%$5,000,000 – $25,000,000

Tax Bracket for Married Filing Jointly

The following is the tax bracket for a married couple filing their NY state tax jointly.

Tax RateTaxable Income
4.00%$0 – $17,150
4.50%$17,150 – $23,600
5.25%$23,600 – $27,900
5.90%$27,900 – $43,000
5.97%$43,000 – $161,550
6.33%$161,550 – $323,200
6.85%$323,200 – $2,155,350
9.65%$2,155,350 – $5,000,000
10.30%$5,000,000 – $25,000,000

New York State Income Tax for Married Couple Filing Separately

In the case of a married couple who are willing to file their NY state taxes separately, following is the tax bracket.

Tax RateTaxable Income
4.00%$0 – $8,500
4.50%$8,500 – $11,700
5.25%$11,700 – $13,900
5.90%$13,900 – $21,400
5.97%$21,400 – $80,650
6.33%$80,650 – $215,400
6.85%$215,400 – $1,077,550
9.65%$1,077,550 – $5,000,000
10.30%$5,000,000 – $25,000,000

State Income Tax Brackets – Head of Household

If you are a head of a household and residing in the New York state then you have to pay your state taxes according to the table below.

Tax RateTaxable Income
4.00%$0 – $12,800
4.50%$12,800 – $17,650
5.25%$17,650 – $20,900
5.90%$20,900 – $32,200
5.97%$32,200 – $107,650
6.33%$107,650 – $269,300
6.85%$269,300 – $1,616,450
9.65%$1,616,450 – $5,000,000
10.30%$5,000,000 – $25,000,000

New York City Income Tax Brackets

In addition to state taxes, residents of New York City also have to pay local income taxes. Local taxes in NYC are also progressive and determined by filing status and income.

NYC Income Tax Bracket for Single Filers

Following is the taxable income for the individual living in New York City.

Tax RateTaxable Income
3.078%$0 – $12,000
3.762%$12,000 – $25,000
3.819%$25,000 – $50,000

NYC Tax Bracket for Married Couple Filing Jointly

If you are a married couple and willing to pay taxes jointly in NYC then here is the tax brackets you should comply with to file your taxes accordingly.

Tax RateTaxable Income
3.078%$0 – $21,600
3.762%$21,600 – $45,000
3.819%$45,000 – $90,000

Married Couple Filing Separately their NYC Taxes

In case a married couple is filing their NYC taxes separately, here is the tax bracket and taxable income.

Tax RateTaxable Income
3.078%$0 – $12,000
3.762%$12,000 – $25,000
3.819%$25,000 – $50,000

NYC Taxes for Head of Household

A head of a household should prepare and file their taxes according to the table below.

Tax RateTaxable Income
3.078%$0 – $14,400
3.762%$14,400 – $30,000
3.819%$30,000 – $60,000

Who Should Pay New York State Income Tax?

There are basically three types of resident status. This status helps in determining the portion of taxes on your income.

Can I File My NY State Taxes Online
can i file my ny state taxes online

Resident TypeTaxable Portion
Proper residentAll income, whether outside or inside of New York, falls under the NY state taxes.
Part-year residentAll income earned while staying in New York in addition to the sources of income within the NY.
Non-residentSources of income from New York if your adjusted gross income exceeds the standard deduction in New York state.

Therefore, if you live in New York and make a living, you must pay state tax there. Your NY taxes as a conventional W-2 employee will be deducted automatically from each paycheck. It will appear on your paycheck.

  • You must submit a state tax return if you live in New York and if you are eligible for filing federal taxes.
  • Moreover, if your federal gross income plus New York income is over $4,000.
  • Also, if you are single and your income is $3,100, someone can claim you as a tax dependent.

Moreover, you must pay taxes to the state in which the work is done if you work remotely or make money in New York.

Deadline for Filing New York Taxes in 2023

If you owe a New York state tax return, the last date to file is April 18, 2023. Whereas, if you are looking to get an extension, then the deadline is October 16, 2023. You can get details on an extension by visiting the New York state tax website.

So, if you are looking for an extension should file before April 18, 2023. Moreover, there will be no late tax payment fine. However, if you fail to do so, there will be both a penalty and a tax amount.

Can I File My NY State Taxes Online?

There are various types of taxes American citizens pay. However, to reduce the burden, state and federal bodies request that citizens file their taxes online. Yes, you can file your taxes electronically.

If the income of New Yorkers is less than $73,000 annually, then they can use the Free File for free filing. However, if you earn more than $73,000, you can buy commercial software to e-file your return. All personal income tax forms can be e-filed, including

  • Form IT-370 – Application for Automatic Six-Month Extension of Time to File for Individuals.
  • Form IT-2105 – Estimated Tax Payment Voucher for Individuals.
  • Non-resident, resident, part-year resident, and amended returns.
  • Returns for tax years 2021, 2020, and 2019.

You can use the following payment options to complete the filing.

  • From your bank account
  • Also, by check or money order.
  • By most major credit or debit cards.

If you are seeking a professional tax preparer in New York state, then AS Tax and Consulting is your go-to firm. We have qualified experts who will ease your tax burden.

Are Pension or Retirement Income Taxable in New York?

The funds withdrawn from IRAs, 401(k)s, 403(b)s, and pensions are all aggregated and subject to normal income tax. The tax rate ranges from 4 to 10.9 percent, the same as other types of income.

How Much Is NY State Tax

The first $20,000 of retirement income from a company pension, 401(k) account, IRA, or another retirement plan is tax-free for people who are 59 and a half years older.

On the other hand, married couples receive a double exemption of $40,000. Here each spouse is eligible for the $20,000 exemption. However, military retirement benefits are tax-free.

Seniors who qualify may reduce their home’s assessed value by as much as 50% to lessen their property taxes. However, you must be 65 years of age or older to reduce your tax liabilities.

Additionally, there is a maximum income cap of $3,000 to $50,000 for that 50% exemption.

If you reside in a municipality that employs the sliding scale, the income and tax exemption rate scale is as follows:

  • A 20% exemption for income of $55,700.
  • A 10% exemption for income of $57,500.
  • Also, a 5% exemption on income of $58,400.

Does New York State Apply Taxes on Social Security Benefits?

No, New York state does not apply taxes on social security benefits. But you have to pay federal taxes on your social security income. However, other states do apply taxes. There is a totally different taxable income bracket for social security benefits.  You can get social security tax exemptions if you are a senior citizen.

Frequently Asked Questions

How is property taxed in New York state?

In New York, the valuation of your home, as determined by the state, is used to determine property tax. However, there are regional and local variations in property taxes. As a result, New York’s average property tax rate is 1.38 percent.

Can New York state residents file for taxes freely?

Yes, the New York state resident, a part-year resident, can file their state taxes freely if their income is less than $73,000 annually. You can use the e-file return option at the NY state tax website to use this option.

What are the filing requirements for New York as a resident?

Under Form IT-201-I, you must file for a return as a New York resident under the following conditions.
●     You are liable to file a federal tax return.
●     You want to request a refund of any income taxes from Yonkers, New York City, or New York State that were deducted from your pay.
●     Your federal AGI for 2021, including any New York additions, was more than $4,000 or $3,100 if you’re filing as single.

What are the filing requirements for a part-year New York resident or a Non-resident?

Under Form IT-203-I, a part-year New York resident or a Non-resident should submit a return if:
●     You receive any income from New York sources.
●     Your New York State standard deduction is more than your New York AGI.
●     Also, if you are seeking reimbursement for any taxes that Yonkers, Yonkers City, or New York State withheld from your pay.
●     Also, if you experienced a new operating loss (NOL) for the tax year and did not incur a similar NOL for federal income tax.

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