Easily estimate take home pay after income tax so you can have an idea of what to possibly expect when planning your budget
Summary
Enter your employment income into our paycheck calculator above to estimate how taxes in New York, USA may affect your finances. You'll then get your estimated take home pay, an estimated breakdown of your potential tax liability, and a quick summary down here so you can have a better idea of what to possibly expect when planning your budget.
This calculator also works as an income tax calculator for New York, as it shows you how much income tax you may have to pay based on your salary and personal details.
To learn more about New York, its income tax, and tax brackets, so that you can get a deeper understanding of how your budget and finances may be affected, scroll down to our detail section below!
How Your New York Paycheck Works
Whether you're earning a salary or an hourly wage, your employer will withhold taxes from your paycheck based on your income, filing status, and other factors. These taxes include federal income tax, state income tax, and local income tax if applicable. You'll also have to pay Social Security and Medicare taxes, which are federal payroll taxes that fund these programs.
What's unique with the tax situation in New York (NY) is that it has one of the highest state income tax rates in the country, especially for high-income earners who face a top marginal rate of 10.9%. It also has a couple localities that impose their own income taxes on top of the state taxes, making it even more expensive for some residents.
The first major item taken from your gross pay is federal income tax. The amount for this that is withheld from your paycheck depends on several factors such as your income level, filing status, exemptions, deductions (expenses that reduce your taxable income) and tax credits (amounts that reduce your tax liability). You can adjust these factors by filling out Form W-4, which tells your employer how much federal income tax to withhold from each paycheck. Additionally, you should update Form W-4 whenever there is a change in your personal or financial situation that affects your tax liability.
The other major item is state income tax which is a progressive tax that ranges from 4% to 10.9% depending on your taxable pay and filing status. New York has nine different tax brackets. Your employer will use Form IT-2104 that you fill out when you start your job to determine how much state income tax to withhold from your paycheck.
Local income tax is an additional tax that some places in New York impose on their residents. For example, New York City (NYC), one of the largest and most prominent cities in the United States, has a city income tax that ranges from 3.078% to 3.876% depending on your taxable income and filing status. The city of Yonkers is another place that also has a city income tax.
Social Security and Medicare, also called FICA (Federal Insurance Contributions Act) taxes, are flat taxes that apply to all employees regardless of their income level. Social Security tax is 6.2% of your gross wages up to a limit of $160,200 for 2022. Medicare tax is 1.45% of your gross wages with no limit. If you earn more than certain thresholds, you will also have to pay an additional Medicare surtax of 0.9% on the excess amount. Your employer will match these taxes by paying the same amount as you do.
One notable tax form that is specific to New York is Form IT-201, which is the resident income tax return that you have to file by April 15th every year (unless it falls on a weekend or holiday or you request an extension). Non-residents would instead fill out Form IT-203. These forms allow you to report your income from all sources, claim deductions and credits, calculate your state and local taxes owed or refunded, and pay any balance due or request a refund.
Other items that reduce your gross pay may vary depending on your employer's policies and the benefits you choose to participate in. Some common examples are health insurance premiums, retirement plan contributions (such as 401(k), IRA, or Roth IRA), flexible spending accounts (such as FSA or HSA), life insurance premiums, disability insurance premiums, union dues, charitable donations, garnishments, and child support payments.
To calculate how much money you'll receive in each paycheck, you need to know how often you get paid and how much money you earn per pay period. Then, your net pay is just your gross pay minus all taxes and any other contributions you're making.
NY State Income Tax Brackets
Single or Married Filing Separately
Married Filing Jointly
Head of Household
For 2022 tax year
| Taxable Income (USD) | Tax Rate |
|---|---|
| First 8,500 | 4% |
| From 8,500 to 11,700 | 4.5% |
| From 11,700 to 13,900 | 5.25% |
| From 13,900 to 80,650 | 5.85% |
| From 80,650 to 215,400 | 6.25% |
| From 215,400 to 1,077,550 | 6.85% |
| From 1,077,550 to 5,000,000 | 9.65% |
| From 5,000,000 to 25,000,000 | 10.3% |
| From 25,000,000 onwards | 10.9% |
For 2022 tax year
| Taxable Income (USD) | Tax Rate |
|---|---|
| First 17,150 | 4% |
| From 17,150 to 23,600 | 4.5% |
| From 23,600 to 27,900 | 5.25% |
| From 27,900 to 161,550 | 5.85% |
| From 161,550 to 323,200 | 6.25% |
| From 323,200 to 2,155,350 | 6.85% |
| From 2,155,350 to 5,000,000 | 9.65% |
| From 5,000,000 to 25,000,000 | 10.3% |
| From 25,000,000 onwards | 10.9% |
For 2022 tax year
| Taxable Income (USD) | Tax Rate |
|---|---|
| First 12,800 | 4% |
| From 12,800 to 17,650 | 4.5% |
| From 17,650 to 20,900 | 5.25% |
| From 20,900 to 107,650 | 5.85% |
| From 107,650 to 269,300 | 6.25% |
| From 269,300 to 1,616,450 | 6.85% |
| From 1,616,450 to 5,000,000 | 9.65% |
| From 5,000,000 to 25,000,000 | 10.3% |
| From 25,000,000 onwards | 10.9% |
A state standard deduction exists and varies depending on your filing status.
High income earners are subject to an additional tax in the form of an extremely complicated and lengthy tax benefit recapture system that varies based on your filing status and your income.
Additionally, the state of New York also includes disability insurance tax and family and paid medical leave (pfml) tax as well.
NYC Income Tax Brackets
Single or Married Filing Separately
Married Filing Jointly
Head of Household
For 2022 tax year
| Taxable Income (USD) | Tax Rate |
|---|---|
| First 12,000 | 3.078% |
| From 12,000 to 25,000 | 3.762% |
| From 25,000 to 50,000 | 3.819% |
| From 50,000 onwards | 3.876% |
For 2022 tax year
| Taxable Income (USD) | Tax Rate |
|---|---|
| First 21,600 | 3.078% |
| From 21,600 to 45,000 | 3.762% |
| From 45,000 to 90,000 | 3.819% |
| From 90,000 onwards | 3.876% |
For 2022 tax year
| Taxable Income (USD) | Tax Rate |
|---|---|
| First 14,400 | 3.078% |
| From 14,400 to 30,000 | 3.762% |
| From 30,000 to 60,000 | 3.819% |
| From 60,000 onwards | 3.876% |
Show Details about Federal Income Tax
