Do I pay NYC tax if I work in NYC but live in NJ?

No. NYC tax is residence-based. Non-resident commuters do not pay NYC personal income tax. You owe NJ tax as a resident, plus NY State tax on NY-source wages, with a credit on your NJ return for tax paid to NY.

Do I pay NYC tax if I live in NYC but work remote for an out-of-state employer?

Yes. As a NYC resident you owe NYC tax on all your income regardless of where it was earned.

Is the Yonkers surcharge separate from NY State tax?

Yes. Yonkers residents pay NY State tax plus a Yonkers surcharge. They are separate calculations on the state return.

NYC Income Tax (Resident and Yonkers)

New York City taxes residents on their income. Non-residents who work in NYC do not pay NYC tax (the rule is residence-based). Yonkers residents pay a separate Yonkers surcharge. Here is how it stacks.

PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, accounting, employment, benefits, or payroll advice. PayslipIQ is not a CPA firm, law firm, financial advisor, payroll provider, or tax authority. Always verify your paycheck, deductions, withholdings, and tax position with your employer's payroll department, a qualified CPA, the IRS, your state tax authority, or another appropriately qualified professional. Calculations are estimates; your actual paycheck may differ based on factors specific to your employer, location, benefits elections, and personal tax situation.

Who pays NYC tax

Residents of any of the five NYC boroughs (Manhattan, Brooklyn, Queens, Bronx, Staten Island). Residence is generally where you maintain your permanent home and spend most days.

Non-residents who work in NYC do NOT pay NYC personal income tax. NYC tax is residence-based.

NYC brackets

Multiple brackets, similar in shape to NY State brackets but with different rates. Verify current rates with the NYC Department of Finance and the NYS Department of Taxation and Finance.

Yonkers

Residents pay a Yonkers tax surcharge in addition to NY State tax. Non-residents who work in Yonkers pay a smaller earnings tax. Both run alongside (not instead of) state tax.

Common pay stub lines for NYC residents

NY State income tax
NYC resident income tax
NY SDI (modest, capped)
NY PFL premium (capped percentage)
Federal income tax
Social Security 6.2 percent
Medicare 1.45 percent

Common pay stub lines for Yonkers residents

Same as NYC residents minus the NYC line, plus a Yonkers surcharge line.

Authoritative sources

Frequently asked questions

Do I pay NYC tax if I work in NYC but live in NJ?: No. NYC tax is residence-based. Non-resident commuters do not pay NYC personal income tax. You owe NJ tax as a resident, plus NY State tax on NY-source wages, with a credit on your NJ return for tax paid to NY.
Do I pay NYC tax if I live in NYC but work remote for an out-of-state employer?: Yes. As a NYC resident you owe NYC tax on all your income regardless of where it was earned.
Is the Yonkers surcharge separate from NY State tax?: Yes. Yonkers residents pay NY State tax plus a Yonkers surcharge. They are separate calculations on the state return.