Sales Tax
- Statewide: 4.0%
- Local governments can levy an additional sales tax of no more than 4.875%.
- Current average sales tax (with local taxes included): 8.3%
- Common Exceptions at State Level:
- Prescription and Over-the-Counter Medicine: Exempt
- Unprepared Foods: Exempt
- Clothing less than $110 for a single item: Exempt
- Gasoline Tax: 66.62 cents/gallon (Includes all state, local, and federal taxes)
- Diesel Fuel Tax: 71.38 cents/gallon (Includes all state, local, and federal taxes)
- The New York City metro area levies a 0.375% to support transit.
Personal Income Tax
- Personal Income Tax Rate Range: Nine brackets from 3.94% to 10.9% (top bracket on income greater than $25 million for both single and joint filers)
- Standard deduction: Single Filing Status: $8,000. Married Filing Jointly: $16,050
- Personal Exemption Allowance: Dependent $1,000
- Itemized Deductions Allowed?: Yes, subject to limitations.
- Retirement Income
- Social Security: Exempt
- IRAs: Taxable at ordinary income tax rates*
- 401Ks/Defined contribution employer retirement plans: Taxable at ordinary income tax rates*
- Private pensions: Taxable at ordinary income tax rates*
- Public Pensions: Most are exempt*
- Military Pay
- Active Duty Pay: Taxable to the extent included in federal Adjusted Gross Income. National Guard exempt if called to active duty.
- Military Retirement Pay: Exempt
- Military Disability Pay: Exempt
- VA Disability Dependency & Indemnity Compensation Benefits: Exempt
- SBP/SSBP/RCSBP/RSFPP: Exempt
*For a taxpayer over 59 1/2, an exemption of $20,000 of private pensions or out-of-state government is available.
Income Tax Comments: State allows county- and city-level income tax.
Property Tax
- Local municipalities average 1.55% of the property's assessed value.
- Calculation of assessed value: 6% of fair market value. Cannot increase more than 20% in five years.
- Relief programs for:
- Owner-Occupied: Limits tax levy for most local governments and school district to a 2% increase. Maximum credit of $75. Subject to phase-out.
- STAR Program: Reduction in assessed value of $88,500 if meet requirements.
- 100% Service-Connected Disability: Primary residence exempt from real property tax. (S 1183)
- Veterans: Reductions in assessed value available based on designated time of war and disability rating. Separate exemption for Cold War veterans.
- Personal Property Tax: Yes. Rates and exemptions vary.
Inheritance & Estate Taxes: Estates over $7,350,000 can be taxed between 3.06% and 16%. New York applies estate taxes using the cliff tax method, which generally leaves a larger portion of your estate subject to tax compared with other states with an estate tax. There is no inheritance tax.
Department of Revenue Website: www.tax.ny.gov
