New York state income tax
New York has a state income tax. It is graduated, with a top marginal rate of 10.9%. Nine graduated brackets from 4% to 10.9%. The top three rates (9.65%, 10.3%, 10.9%) are locked in through tax year 2027; the 10.9% top rate applies to income over $25 million. Capital gains are taxed as ordinary income (no special lower rate).
Does New York have a state income tax?
Yes. New York taxes individual income on a graduated schedule topping out at 10.9%. Nine graduated brackets from 4% to 10.9%. The top three rates (9.65%, 10.3%, 10.9%) are locked in through tax year 2027; the 10.9% top rate applies to income over $25 million.
| Item | New York |
|---|---|
| State income tax | Yes, graduated |
| Top marginal rate | 10.9% |
| Capital gains | Taxed as ordinary income, up to 10.9% |
| State sales tax | 4% (plus local) |
| Avg. property tax rate | 1.24% of home value |
| Estate / inheritance tax | Estate tax (exemption $7,350,000) |
How does New York tax capital gains?
New York has no separate, lower rate for capital gains. They are taxed as ordinary income at the same rates as your wages, up to 10.9%, on top of federal capital gains tax. See how capital gains tax works in 2026.
What about retirement income in New York?
Retirement income is taxed differently from wages in many states. For how New York treats Social Security, pensions, and 401(k)/IRA withdrawals, see New York retirement taxes.
Sources
- New York income tax rates and brackets: New York Department of Revenue / Taxation.
- New York capital gains treatment: New York tax authority.
- New York sales tax: New York Department of Revenue.