Your Quick Guide to Taxes in New York City (NYC)

An overview of the major taxes affecting residents of the Big Apple

Empire State Building at Sunset
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New York City (NYC) is one of the few cities in the country that has its own income tax. The city also has one of the highest cigarette taxes in the nation, and residents have to pay a state tax to get a tobacco fix as well. The high taxes don't stop there. The state of New York stands out for having some of the highest property taxes in the nation

New York City Property Tax

New York City Department of Finance values New York City residential and commercial properties.

  A tentative value assessment is sent out each January.  If there are no changes, the final assessment is sent out in May. New York City assessments are based on percentages of market value with those percentages varying based on the type of property. If you do not agree with your assessment, you can appeal it.

Property tax rates are set each year by the mayor and City Council.  Property tax rates vary depending on the type of property. These tax rates are applied to property values to help determine each homeowner's annual tax liability. Property tax bills are sent out each year in June, and payments are due either in two (semi-annual) or four (quarterly) payments.   

New York City has several exemptions and property tax reductions available, including exemptions for senior citizens, veterans and the disabled. The New York State STAR exemption for owner-occupied housing is also available as well as property tax abatements (or reductions) for certain individuals.

 

NYC Income Tax

New York City has a separate city income tax residents must pay in addition to the state income tax.  New York City income tax rates vary from year to year. The tax rate you will pay depends on your income level and filing status. The New York City income tax is based on your New York State taxable income, so there are no city-specific deductions.

There are tax credits that specifically offset New York City income tax however.

Other New York City Taxes

In addition to the state sales tax and the Metropolitan Commuter Transportation District (MCTD) surcharge, New York City charges a sales tax. Food, prescription and non-prescription drugs are exempt. Inexpensive clothing and footwear is also exempt.

For any inexpensive to moderately-priced room, there's a state and local tax on hotel rooms. This tax rate includes New York City and state sales taxes as well as the hotel occupancy tax. Rooms renting for less expensive prices are subject to the same rates but at lower nightly dollar amount fees.

Medallion owners or their agents pay a tax per cab ride that either ends in New York City or starts in New York City and ends in Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, or Westchester counties. This tax, known as the taxicab ride tax, is generally passed on to customers.