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New York State continues to maintain some of the highest tax rates in the nation across income, property, and sales taxes. With nine tax brackets, additional local income taxes, and varying property tax rates, it is crucial for residents to understand their obligations.
2025 New York Income Tax Rates
New York’s state income tax is progressive, with rates ranging from 4% to 10.9% across nine brackets. Additionally, residents of New York City and Yonkers must pay local income taxes.
Income Tax Brackets for 2025:
| Single Filers & Married Filing Separately | Tax Rate |
|---|---|
| $0 to $8,500 | 4% |
| $8,501 to $11,700 | $340 plus 4.5% of income over $8,500 |
| $11,701 to $13,900 | $484 plus 5.25% of income over $11,700 |
| $13,901 to $80,650 | $600 plus 5.5% of income over $13,900 |
| $80,651 to $215,400 | $4,271 plus 6% of income over $80,650 |
| $215,401 to $1,077,550 | $12,356 plus 6.85% of income over $215,400 |
| $1,077,551 to $5,000,000 | $71,413 plus 9.65% of income over $1,077,550 |
| $5,000,001 to $25,000,000 | $449,929 plus 10.3% of income over $5,000,000 |
| Over $25,000,000 | $2,509,929 plus 10.9% of income over $25,000,000 |
Similar tax brackets apply to Joint Filers and Head of Household filers, with adjusted thresholds.
New York Property Tax Rates in 2025
New York’s property taxes vary significantly by county and municipality. On average, homeowners pay 1.54% of their home’s assessed value in property taxes, according to the latest Tax Foundation data.
Key Takeaways:
- Highest Property Tax Counties: Nassau, New York, Putnam, Rockland, Suffolk, and Westchester (over $10,000 median tax bills)
- Lowest Property Tax County: Hamilton County ($2,197 median tax bill)
For official tax rates and assessment details, visit the New York State Department of Taxation and Finance website.
2025 New York Sales Tax Rates
New York imposes a 4% state sales tax, with additional local sales taxes up to 4.875%, making the average combined sales tax rate 8.53%.
Tax-Exempt Items:
✅ Most groceries
✅ Clothing under $110
✅ Prescription & non-prescription drugs
✅ Medical equipment
To find your local sales tax rate, check the New York Department of Taxation and Finance website.
Retirement & Investment Income Taxation
- Pension & 401(k) Withdrawals: Taxed at regular income rates (4%-10.9%)
- Government & Military Pensions: Tax-exempt
- Retirement Income Exemption: The first $20,000 from pensions or IRAs is tax-free for those 59½ or older ($40,000 for married couples).
- Social Security Benefits: Not taxed at the state level
Additional New York State Taxes
- Gas Tax: 8.05 cents per gallon
- Alcohol Tax: Beer (14 cents/gal), Wine (30 cents-$6.44/gal), Liquor (67 cents-$1.70/liter)
- Commuter Tax: Employers & self-employed individuals in NYC metro area pay 0.11%-0.6%
- Lottery Winnings: Subject to federal, state, and local taxation
Tax Breaks for New York Seniors
New York offers multiple tax breaks for older residents:
- Social Security Exemption: Fully exempt from state taxes
- Real Property Tax Credit: Up to $375 for low-income seniors
- Enhanced STAR Program: Reduces property taxes for eligible homeowners over 65
Stay ahead of your tax obligations. Check your 2025 tax bill today and avoid penalties. Visit the official New York State tax website for more information.
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