How the New York Paycheck Calculator Works

This calculator breaks down your New York paycheck by accounting for federal income tax, New York state income tax (progressive rates from 4% to 10.9%), NYC local income tax (if applicable), and FICA taxes. New York has one of the highest combined tax burdens in the US, especially for NYC residents who pay both state and city taxes.

The calculation follows this formula:

Here’s what happens. Your gross pay gets reduced first by pre-tax deductions (401(k), health insurance, HSA). Federal income tax applies using 2025 IRS brackets. New York state tax applies using progressive brackets from 4% to 10.9% based on your IT-2104 filing status and allowances. If you live and work in New York City, NYC local tax applies at progressive rates from 3.078% to 3.876%. Social Security takes 6.2% up to $176,100. Medicare takes 1.45% plus 0.9% additional on high earners. What’s left is your net pay.

Understanding New York State and NYC Taxes

NY State Progressive Tax Rates

New York state uses progressive tax brackets. Single filers pay 4% on the first $8,500, scaling up to 6.5% on income from $13,901 to $80,650, then 6.85% on income from $80,651 to $215,400, and topping out at 10.9% on income over $25 million. Most middle and upper-middle income earners fall into the 6.5% to 6.85% brackets.

Unlike flat-tax states like Illinois, New York’s progressive system means higher earners pay higher percentages. A $50,000 earner pays roughly 4.5% effective state tax. A $200,000 earner pays closer to 6.5%. The top 10.9% rate only applies to extremely high earners.

NYC Local Income Tax

New York City levies its own income tax on residents. You pay NYC tax if you live in one of the five boroughs (Manhattan, Brooklyn, Queens, Bronx, Staten Island) and work anywhere. Non-residents who work in NYC but live elsewhere don’t pay the city tax, just state tax.

NYC tax rates range from 3.078% to 3.876% depending on income and filing status. For most earners, this adds roughly 3-3.5% to your total tax burden. Combined with NY state tax and federal tax, NYC residents can easily pay 35-45% of gross income in taxes.

NY Allowances Explained

New York uses an allowance system on the IT-2104 form. Each allowance reduces your annual taxable income by $1,000. Most people claim 0 allowances, but you can claim allowances if you have dependents or qualify for certain credits. More allowances means less tax withheld per paycheck but potentially a smaller refund or larger bill at tax time.

Real New York Paycheck Examples

Annual Salary	Location	Gross Biweekly	Total Tax	Net Biweekly
$60,000	Upstate NY	$2,307.69	$585.00	$1,722.69
$60,000	NYC	$2,307.69	$655.00	$1,652.69
$100,000	Upstate NY	$3,846.15	$1,075.00	$2,771.15
$100,000	NYC	$3,846.15	$1,205.00	$2,641.15
$150,000	NYC	$5,769.23	$2,010.00	$3,759.23

Note: Examples assume single filing status, 1 federal allowance, 0 NY allowances, no pre-tax deductions. Actual amounts vary.

New York vs. Other States Comparison

State/City	State + Local Tax	$100k Net Pay	vs. NYC
NYC	~10% total	$67,000	Baseline
NY (Upstate)	~6.5%	$71,000	+$4,000
Texas	0%	$76,000	+$9,000
California	~9.3%	$69,000	+$2,000
Florida	0%	$76,000	+$9,000

NYC residents pay roughly $9,000-10,000 more annually in state and local taxes compared to zero-tax states on a $100,000 salary. Even upstate New York is significantly more expensive than Texas or Florida.

Edge Cases and Common Questions

What If I Live in NJ or CT But Work in NYC?

You pay NY state tax on income earned in New York, but not NYC tax (since you don’t live there). Your home state (NJ or CT) then gives you a credit for taxes paid to NY so you don’t get double-taxed. Net result: you save NYC tax (3-4%) but still pay NY state tax plus your home state tax. Most people save money this way despite the commute costs.

What If I Work from Home in NYC for a Company Elsewhere?

You pay NY state and NYC taxes based on where you physically work. If you live in NYC and work remotely for a California company, you pay NY and NYC taxes, not California taxes. Your employer should withhold based on your location (NYC), not theirs.

What If I Move to NYC Mid-Year?

You pay NYC tax only on income earned while living in NYC. If you move from Texas to NYC in July, your first six months have no state or city tax. Your last six months get taxed by both NY state and NYC. File a part-year resident return. Update your W-4 and IT-2104 once you establish NYC residency.

What If My Bonus Gets Taxed at a Higher Rate?

Bonuses get withheld at 22% federal plus NY state supplemental rate (approximately 6.85%) plus NYC rate if applicable (approximately 3.8%). Total withholding can hit 32-33% for NYC residents. If your actual tax bracket is lower, you’ll get the difference back at tax time. If it’s higher, you’ll owe more.

What If I Claim More NY Allowances?

Each NY allowance reduces taxable income by $1,000 annually. Claiming allowances reduces withholding and increases take-home pay now, but you might owe at tax time. Most people claim 0 allowances unless they have dependents or qualify for credits. Check the IT-2104 worksheet to see if you qualify for allowances.

What If NY Raises Tax Rates?

New York periodically adjusts tax rates and brackets. If the state raises rates, your net pay drops proportionally. A 1% rate increase costs roughly $1,000 annually per $100,000 of income. NYC can also adjust its local tax rates independently. Watch for budget proposals and tax changes announced by the state legislature and city council.

What If I’m Self-Employed in NYC?

Self-employed individuals pay both halves of FICA (15.3%) plus federal, NY state, and NYC income taxes. You make quarterly estimated payments. NYC also has a Unincorporated Business Tax (UBT) that applies to some self-employed individuals earning over $95,000. Total tax burden can exceed 45% for high-earning NYC freelancers.

Understanding Gross vs. Net in New York

The NYC Tax Reality

NYC residents can lose 35-45% of gross pay to all taxes (federal, state, city, FICA). A $120,000 salary nets roughly $75,000-80,000 after taxes. That’s $6,250-6,600 per month take-home. Rent easily consumes $2,500-4,000 of that in Manhattan. Budget with net pay, not gross, and factor in NYC’s high cost of living.

Pre-Tax Benefits Are Crucial

In NYC, pre-tax deductions save massive amounts. If you’re in the 24% federal bracket, 6.85% NY bracket, and 3.8% NYC bracket, every $1,000 in 401(k) contributions saves roughly $346 in federal tax, $68.50 in state tax, $38 in city tax, and $76.50 in FICA. That’s $529 total savings per $1,000 contributed. Max out all pre-tax accounts.

Should You Work in NYC for the Salary?

When It Makes Sense

NYC offers higher salaries in finance, tech, media, and law. A $150,000 NYC salary might net $95,000 after taxes. The same job in Dallas pays $120,000 but nets $90,000. You make $5,000 more in NYC, but rent costs $2,000 more per month. Do the full math including cost of living, not just taxes.

It makes sense if career growth, network effects, or industry concentration justify the premium. Many careers (investment banking, Broadway, fashion) don’t exist at scale outside NYC.

When It Doesn’t Make Sense

Don’t move to NYC for a modest salary increase without accounting for taxes and cost of living. A $90,000 offer in NYC leaves you with less spending power than $75,000 in a low-tax, low-cost city like Austin or Nashville. Run the numbers on net pay, rent, commute costs, and quality of life before accepting.

Frequently Asked Questions

Do I Pay NYC Tax If I Work in Manhattan But Live in Brooklyn?

Yes. NYC tax applies to all NYC residents regardless of which borough you live or work in. Brooklyn, Manhattan, Queens, Bronx, and Staten Island are all part of NYC for tax purposes. You pay the same NYC tax whether you live in Manhattan or Staten Island.

What’s the Difference Between NY State and NYC Tax?

They’re separate taxes. NY state tax applies to everyone who earns income in New York (6.5-6.85% for most earners). NYC tax applies only to NYC residents (3-4% additional). If you live in NYC, you pay both. If you live upstate or in suburbs, you only pay state tax.

Can I Avoid NYC Tax by Living in New Jersey?

Yes, but you’ll pay NJ tax instead. Living in NJ means no NYC tax (save 3-4%) but you pay NY state tax on NY income plus NJ tax on all income. NJ gives you a credit for NY taxes paid. Net result: slightly lower total tax than living in NYC, but factor in commute costs and time.

How Accurate Is This Calculator?

Very accurate for standard W-2 employees using 2025 tax tables. Where it might differ: unusual deductions, union dues, MTA tax (not included), or employer-specific withholding. For precise numbers, check your actual paystub. Small differences (under $75 per paycheck) are normal.

What’s the MTA Tax?

The Metropolitan Commuter Transportation Mobility Tax (MTA tax) applies to employers, not employees. It’s paid by your employer based on payroll, not deducted from your paycheck. You don’t see it on your paystub, but it’s part of the total cost of employing someone in the NYC metro area.

Should I Move Out of NYC to Save on Taxes?

Depends on your income and career. Saving 3-4% on NYC tax is meaningful (that’s $3,000-4,000 annually on $100,000), but consider career opportunities, commute costs, and lifestyle. Many people commute from NJ, CT, or Westchester to split the difference. Running the full numbers on net income, rent, and quality of life helps make this decision.

Maximizing Your New York Take-Home Pay

Max All Pre-Tax Accounts

Contribute to 401(k) ($23,500 in 2025), HSA ($4,300 single, $8,550 family), and FSA ($3,300). In NYC, these save 34-40% in combined taxes. On a $120,000 salary, maxing a 401(k) saves roughly $9,400 in total taxes (federal + state + city + FICA).

Consider Living Outside NYC Limits

Living in Yonkers, White Plains, Hoboken, or Jersey City saves NYC tax (3-4%) but adds commute time and costs. Crunch the numbers on after-tax savings, commute costs, and time value. Many high earners find the savings worth the commute.

Negotiate Gross Salary Appropriately

When negotiating, remember NYC’s high tax burden. A $130,000 offer in NYC nets roughly the same as $110,000 in Texas after taxes and cost of living. Ask for 15-20% more gross to compensate for higher taxes and living costs.

Related Tools

Need to calculate other aspects of your New York income? Check out these related calculators:

• New York Salary Calculator (annual salary breakdown)
• Hourly to Salary Calculator (convert hourly wage to annual income)
• Cost of Living Calculator (compare NYC, Buffalo, Rochester, Albany)
• Bonus Tax Calculator (see how bonuses get taxed)
• Rent Affordability Calculator (what you can afford in NYC)