New York taxes and cost of living (2026)
New York has a graduated income tax from 3.90% to 10.90%. A $100,000 salary is worth about $61,803 a year in national buying power after every tax and New York's prices, #47 of 51 (the state average is $70,397). Retiring on $50,000 a year takes about $1.44M, #48 lowest.
- State income tax
- 3.9%–10.90%
- Sales tax (avg. combined)
- 8.54%
- Property tax (effective)
- 1.45%
- Cost of living
- 107.9
- US = 100
- Social Security taxed?
- No
- Median home
- $450K
Take-home pay in New York
Single filer, 10% of salary to a pre-tax 401(k), standard deduction, renting. All taxes include estimated sales tax.
| Salary | Federal | FICA | State + local | All-in tax rate | Take-home | In US dollars |
|---|---|---|---|---|---|---|
| $50,000 | $3,220 | $3,825 | $2,049 | 19.7% | $35,906 | $33,271 |
| $75,000 | $6,020 | $5,738 | $3,372 | 21.6% | $52,371 | $48,527 |
| $100,000 | $10,970 | $7,650 | $4,682 | 24.8% | $66,698 | $61,803 |
| $150,000 | $21,134 | $11,475 | $7,647 | 28.3% | $94,744 | $87,790 |
| $250,000 | $43,304 | $15,514 | $13,623 | 30.5% | $152,559 | $141,362 |
What it takes to retire in New York
Married couple, age 60, withdrawals 60% from 401(k)/IRA, 20% Roth, 20% brokerage, no Social Security yet, renting. Spending at US-average prices.
| Spending | At NY prices | Income taxes | All taxes | FI number |
|---|---|---|---|---|
| $40,000 | $43,168 | $0 | $1,180 | $1.08M |
| $60,000 | $64,753 | $708 | $2,477 | $1.64M |
| $80,000 | $86,337 | $2,335 | $4,695 | $2.22M |
| $120,000 | $129,505 | $7,302 | $10,841 | $3.42M |
New York tax rules at a glance
- Income tax: New York has a graduated income tax from 3.90% to 10.90%. FY2026 budget cut the five lowest rates by 0.1 point for TY2026 (4%->3.9%, 4.5%->4.4%, 5.25%->5.15%, 5.5%->5.4%, 6%->5.9%), with another 0.1-point cut in 2027. Tax benefit recapture: once NY AGI exceeds $107,650, the benefit of lower brackets is phased out, and above ~$25M AGI the top rate applies to all income. No personal exemption for filers; $1,000 per dependent.
- Payroll: Paid Family Leave (0.432% up to $95,349): 0.43% of wages up to $95,349.
- Local income tax: Figures are for New York residents outside New York City and Yonkers. NYC residents pay an extra 3.078%-3.876% city income tax (about $3,400 more at a $100,000 salary).
- Social Security: Not taxed. Fully exempt.
- Retirement income: Up to $20,000 per person of private pension/annuity/IRA income for age 59.5+. NY State/local government, federal, and military pensions are fully exempt at any age.
- Capital gains: Taxed as ordinary income.
- Sales tax: 4.00% state rate, 8.54% average with local taxes; groceries exempt.
Compare New York with
Frequently asked questions
Does New York have a state income tax?
New York has a graduated income tax from 3.90% to 10.90%. FY2026 budget cut the five lowest rates by 0.1 point for TY2026 (4%->3.9%, 4.5%->4.4%, 5.25%->5.15%, 5.5%->5.4%, 6%->5.9%), with another 0.1-point cut in 2027. Tax benefit recapture: once NY AGI exceeds $107,650, the benefit of lower brackets is phased out, and above ~$25M AGI the top rate applies to all income. No personal exemption for filers; $1,000 per dependent.
How much is $100,000 after taxes in New York?
A single filer earning $100,000 who puts $10,000 in a 401(k) takes home about $66,698 after federal, state and local income taxes and payroll taxes, an all-in effective rate of 24.8% including estimated sales tax.
Does New York tax Social Security?
No. New York does not tax Social Security benefits. Fully exempt.
How much do you need to retire in New York?
To spend $50,000 a year (at US-average prices) with withdrawals mostly from a 401(k)/IRA, you'd need about $1.44M in New York using the 4% rule, after its cost of living and taxes.
Is New York expensive to live in?
New York's cost of living index is 107.9, where the US average is 100 (BEA Regional Price Parities, 2024). The median home is worth about $449,800 and median rent is $1,634 a month.
How this is calculated
- Income taxes use 2026 federal and state brackets, standard deductions and personal exemptions or credits. No itemized deductions or other credits. Local income taxes use a typical statewide rate (for example, Maryland's county taxes or New York City's); many places have none.
- Payroll taxes include Social Security (6.2% up to the wage base), Medicare, and employee-paid state programs such as California SDI or Washington's paid leave premium. A married household salary is treated as two equal earners for payroll-tax caps.
- Cost of living uses the Bureau of Economic Analysis's Regional Price Parities (2024), where the US average is 100. Spending you enter at national prices is scaled by each state's index.
- Sales tax is estimated as the average combined state and local rate on about a third of spending (more where groceries are taxed). It is shown for context but not added to costs, because the price parities already include it. Property tax applies the state's effective rate to its median home value (Census ACS 2024) if you own.
- Retirement solves for the withdrawal that covers your spending plus the taxes it triggers, using each state's treatment of Social Security, retirement-account withdrawals and capital gains, then multiplies by 25 (a 4% withdrawal rate).
- Years to FI starts from zero, adds what you save each year in that state, and grows it at a 5% real return until it reaches that state's FI number.
Estimates for comparison, not tax advice. Your actual taxes depend on deductions, credits, where in the state you live and more. Sources: BEA Regional Price Parities, Census ACS, state sales tax rates, IRS, state revenue departments (per state).