Did you know that there are multiple NYC tax rates? They’re progressive rates, meaning that they increase in increments with the amount of income that you make.
It’s important to note how income taxes are deducted in NYC so that you understand how much tax you’ll pay when you file. This can help you plan accordingly, especially if you’re going to be relocating to New York City.
So, what is there to know about NYC tax brackets? Keep reading and we’ll give you the lowdown.
What Are the NYC Tax Brackets?
There are several NYC tax brackets according to the individual’s income. These NYC income tax brackets will also vary based on your marital and filing status.
Married, Filing Jointly
If you are married and also filing jointly with your spouse, here are the four major income tax brackets in NYC.
If you earned less than $21,600, your rate will be 3.078%. This is the lowest income tax bracket in the city.
If you earn an income that is between $21,600 and $45,000, you can expect to pay a base fee of $665. You also pay 3.762% of any additional income over $21,600.
If you earn between $45,000 and $90,000, your base fee will be $1545. You’ll also pay 3.819% of the excess amount over $45,000.
Finally, if you earned over $90,000 in income in the previous year, you’ll pay a base fee of $3264. You will also pay 3.876% of any of the additional income you earned over $90,000.
Single or Married, Filing Separately
There are also four individual tax brackets if you are a single person. Additionally, if you are married but filing separately from your spouse, these tax brackets will apply to you.
If you earn less than $12,000, your tax rate will be 3.078%.
If you earn between $12,000 and $25,000, you can expect to pay a base fee of $369. You also pay 3.762% of any excess over $12,000.
If you earn between $25,000 and $50,000, your base fee will be $858. You also pay 3.819% of any excess over $25,000.
Finally, if your combined income is over $50,000, your base fee will be $1813. You also pay 3.867% of any excess over $50,000.
Filing As Head of Household
If you are filing as the head of household, your tax rates will be as follows.
If you earn less than $14,400, your tax rate will be 3.078%. This is the base rate.
If you earned between $14,400 and $30,000, your base fee will be $443. You also pay 3.762% of any excess over $14,400.
If you earned between $30,000 and $60,000, your base fee will be $858. You can also expect to pay 3.819% of any excess over $30,000.
Finally, if you earned more than $60,000 in the previous year, your base fee will be $2176. You also pay 3.867% of any excess earned over $60,000.
If you are suffering legal issues due to a tax lawsuit, you can schedule a confidential initial consultation with an experienced tax attorney.
Understanding NYC Tax Brackets
At the end of the day, NYC tax brackets are designed to produce income for the city on top of its basic streams of revenue. Depending on your filing status and income, you can expect to pay a wide range of taxes. If you have any questions about laws related to your taxes, please contact a tax attorney today.
If you enjoyed this article about taxes in New York City, please check out the other articles on our blog!