New York

Sales Tax

  • Statewide: 4.0%
  • Counties can levy an additional sales tax of no more than 4.875%.
  • Current average sales tax (with local taxes included): 8.25%
  • Common Exceptions at State Level:
    • Prescription and Over-the-Counter Medicine: Exempt
    • Unprepared Foods: Exempt
    • Clothing less than $110 for a single item: Exempt
  • Gasoline Tax: 66.62 cents/gallon (Includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 71.38 cents/gallon (Includes all state, local, and federal taxes)
  • The NYC metro area levies a .375% to support transit. 

 

Personal Income Tax

  • Personal Income Tax Rate Range: Nine brackets from 4.0% to 10.9% (top bracket on income greater than $25,000,000)
  • Standard deduction: Single Filing Status: $8,000. Married Filing Jointly: $16,050
  • Personal Exemption Allowance: Dependent $1,000
  • Itemized Deductions Allowed?: Yes, subject to limitations.
  • Retirement Income
    • Social Security: Exempt
    • IRAs: Taxable at ordinary income tax rates*
    • 401Ks/Defined contribution employer retirement plans: Taxable at ordinary income tax rates*
    • Private pensions: Taxable at ordinary income tax rates*
    • Public Pensions: Most are exempt*
  • Military Pay
    • Active Duty Pay: Taxable to the extent included in federal Adjusted Gross Income
    • Military Retirement Pay: Exempt
    • Military Disability Pay: Exempt
    • VA Disability Dependency & Indemnity Compensation Benefits: Exempt
    • SBP/SSBP/RCSBP/RSFPP: Exempt
Income Tax Comments: *For a taxpayer over 59 1/2, an exemption of $20,000 of private pensions or out-of-state government is available. State allows county- and city-level income tax.

 

Property Tax

  • Local municipalities average 1.64% of the property's assessed value.
  • Calculation of assessed value: 6% of fair market value. Cannot increase more than 20% in five years.
  • Relief programs for:
    • Owner-Occupied or Disabled: Maximum credit of $350 if property taxes exceed 6% of AGI. Subject to phase-out.
    • 65 and Over: Up to 50% reduction in assessed value if meet income and other requirements.
    • Veterans: Reductions in assessed value available based on designated time of war.
  •  Personal Property Tax: Yes. Rates and exemptions vary.

 

Inheritance & Estate Taxes: Estates over $6,940,000 can be taxed between 3.06% and 16%. New York applies estate taxes using the cliff tax method, which generally leaves a larger portion of your estate subject to tax compared with other states with an estate tax. There is no inheritance tax.

 

Department of Revenue website: www.tax.ny.gov

More Financial Guidance From MOAA 

Premium and Life members can consult our financial staff for education and consumer advice.

 

Looking to get more out of your membership? MOAA has more than 400 chapters around the country. Get involved in your community by finding the one closest to you and joining today!