New York State Income Tax Rates and Brackets for 2025 Explained

Key Takeaways

• New York’s 2025 state income tax rates and brackets remain unchanged from 2024.
• Future tax reductions start in 2027 with rates dropping for some brackets and top rate after 2032.
• Estimated tax payment threshold rises to $5,000 in 2026 affecting self-employed and freelancers.

New York’s state income tax rates and brackets for 2025 remain a key topic for anyone living, working, or planning to move to New York. Recent legislative updates, while not immediately changing the tax rates for 2025, have set the stage for future adjustments that will impact residents, workers, and newcomers in the years ahead. This update provides a clear summary of what has changed, who is affected, when these changes take effect, what actions are required, and what these developments mean for pending and future tax filings.

Summary of What Changed

As of July 10, 2025, the state income tax rates and brackets in New York have not changed from the previous year. However, new legislation signed in May 2025 by Governor Kathy Hochul introduces important changes that will affect future tax years. These changes include:

• Planned reductions in state income tax rates for certain brackets starting in 2027.
• An increase in the threshold for filing estimated taxes, effective in 2026.
• Adjustments to payroll taxes for employers in the Metropolitan Commuter Transportation District (MCTD), effective July 1, 2025.

While these changes do not immediately impact the 2025 state income tax rates and brackets, they are important for anyone planning their finances, especially immigrants, new residents, and those considering moving to New York.

Current State Income Tax Rates and Brackets for 2025

For the 2025 tax year, New York continues to use a progressive tax system with nine income brackets. This means that as your income increases, the rate you pay on each portion of your income also increases. Here are the 2025 state income tax rates and brackets for single filers and those married filing separately:

• 4%: $0 to $8,500
• 4.5%: $8,501 to $11,700
• 5.25%: $11,701 to $13,900
• 5.5%: $13,901 to $80,650
• 6%: $80,651 to $215,400
• 6.85%: $215,401 to $1,077,550
• 9.65%: $1,077,551 to $5,000,000
• 10.3%: $5,000,001 to $25,000,000
• 10.9%: $25,000,001 and over

These rates apply to taxable income, which is your total income after subtracting deductions and exemptions allowed by New York law.

Who Is Affected by These Rates and Brackets?

• Residents of New York: Anyone who lives in New York for most of the year must pay state income tax on all their income, no matter where it comes from.
• Part-year residents: If you moved into or out of New York during the year, you pay tax on income earned while you were a resident.
• Nonresidents: If you live outside New York but earn income from New York sources (such as a job or rental property in New York), you must pay tax on that income.
• Immigrants and newcomers: If you recently moved to New York, you are subject to these rates as soon as you become a resident or earn income in the state.

Local Taxes in New York City and Yonkers

In addition to state income tax, residents of New York City and Yonkers must pay local income taxes. These local taxes are separate from state taxes and have their own rates and rules. For many immigrants and newcomers, this can be a surprise, so it’s important to plan for both state and local taxes when budgeting.

Recent Legislative Changes: What’s New?

In May 2025, Governor Kathy Hochul signed a new law (A3009) that includes several tax-related provisions. Here’s what you need to know:

• No Immediate Change to 2025 State Income Tax Rates and Brackets: The law does not change the current rates or brackets for 2025.
• Future Rate Reductions: Starting in 2027, some income tax rates will go down. For certain brackets, rates will range from 3.8% to 5.8%. This means that, for many people, the amount of state income tax they owe will decrease in the future.
• Top Rate Reduction After 2032: The highest tax rate, which currently applies to income over $25,000,001, is scheduled to drop to 8.82% after the 2032 tax year for income over certain thresholds.
• Estimated Tax Threshold Increase: The minimum amount of tax that requires you to make estimated payments will rise to $5,000 starting in 2026. This change is especially important for self-employed people, freelancers, and anyone with income not subject to withholding.
• Payroll Tax Changes for Employers: While these changes mostly affect businesses, it’s worth noting that payroll tax rates for employers in the Metropolitan Commuter Transportation District (MCTD) will change starting July 1, 2025. This does not affect individual income tax rates, but it may impact job opportunities and payroll practices in the region.

Effective Dates

• 2025 Tax Year: No changes to state income tax rates and brackets.
• July 1, 2025: Payroll tax changes for employers in the MCTD take effect.
• 2026 Tax Year: The threshold for filing estimated taxes increases to $5,000.
• 2027 Tax Year: Planned reductions in state income tax rates for certain brackets begin.
• After 2032 Tax Year: The top state income tax rate is scheduled to decrease to 8.82% for income over specific thresholds.

Required Actions for Taxpayers

If you live or work in New York, here’s what you need to do:

1. Review Your Income: Check which tax bracket your income falls into for 2025. This will help you estimate how much state income tax you’ll owe.
2. Plan for Local Taxes: If you live in New York City or Yonkers, remember to include local income taxes in your planning.
3. Prepare for Estimated Tax Changes: If you pay estimated taxes, be aware that the threshold will rise to $5,000 in 2026. If your estimated tax liability is below this amount, you may not need to make quarterly payments.
4. Stay Informed About Future Changes: The planned rate reductions starting in 2027 could lower your tax bill. Keep track of updates from the New York State Department of Taxation and Finance.
5. File on Time: Make sure to file your state income tax return by the deadline, usually April 15 of the following year. Late filings can result in penalties and interest.

Implications for Pending and Future Applications

For immigrants and newcomers, understanding the state income tax rates and brackets is important for several reasons:

• Visa and Green Card Applications: Many immigration forms, such as the Form I-485, Application to Register Permanent Residence or Adjust Status, ask about your income and tax filing history. Accurate reporting of your income and taxes paid in New York can support your application.
• Public Charge Rule: While the federal government has eased some rules, showing that you pay your taxes and can support yourself is still important for many immigration processes.
• Naturalization: When applying for U.S. citizenship, you must show that you have filed all required tax returns. Understanding your state tax obligations helps you avoid problems during the naturalization process.
• State Benefits and Programs: Some state benefits require proof of income and tax filing. Knowing your tax bracket helps you qualify for programs you may need.

How State Income Tax Rates and Brackets Affect Different Groups

• Immigrants and Newcomers: If you recently arrived in New York, you may not be familiar with the state’s progressive tax system. It’s important to learn which bracket you fall into and how much tax you need to pay. This helps you avoid surprises at tax time and supports your immigration status.
• Students and Temporary Workers: If you’re in New York on a student or work visa, you may still need to file a state tax return, even if your income is low. Check the rules for your visa type and income level.
• Employers and Small Business Owners: If you hire workers or run a business in New York, you need to withhold the correct amount of state income tax from your employees’ paychecks. The payroll tax changes in the MCTD may also affect your business.
• Families: If you file jointly or claim dependents, your tax bracket may be different. Make sure to use the correct filing status when preparing your return.

Examples and Scenarios

Let’s look at a few examples to show how the state income tax rates and brackets work in practice:

• Single Worker: Maria is a single filer with a taxable income of $50,000 in 2025. She falls into the 5.5% bracket for the portion of her income between $13,901 and $80,650. The first $8,500 is taxed at 4%, the next $3,200 at 4.5%, the next $2,200 at 5.25%, and the rest at 5.5%.
• Married Couple Filing Separately: John and his spouse both work and file separately. Each calculates their tax based on their own income using the same brackets as single filers.
• High Earner: Priya earns $2,000,000 in 2025. Her income over $1,077,551 is taxed at 9.65%. The lower portions of her income are taxed at the lower rates for each bracket.
• Self-Employed Immigrant: Ahmed is a new resident who works as a freelancer. In 2026, if his estimated state tax liability is less than $5,000, he won’t need to make quarterly estimated payments due to the new threshold.

Planning for the Future: What to Watch For

The planned reductions in state income tax rates and brackets starting in 2027 mean that many New Yorkers will see lower tax bills in the future. However, these changes are not immediate, so it’s important to plan based on the current rates for 2025 and 2026.

• Budgeting: Use the current brackets to estimate your tax liability for 2025 and 2026.
• Tax Withholding: If you’re an employee, check your paycheck to make sure the right amount of state tax is being withheld. You can adjust your withholding if needed.
• Estimated Payments: If you’re self-employed or have other income not subject to withholding, remember the new $5,000 threshold for estimated taxes starting in 2026.
• Stay Updated: Tax laws can change. Check the New York State Department of Taxation and Finance for the latest information.

Official Resources and Where to Get Help

For the most up-to-date information on state income tax rates and brackets in New York, visit the New York State Department of Taxation and Finance. This site provides official tax tables, forms, and guidance for residents, nonresidents, and employers.

If you need help with your taxes, you can:

• Contact a licensed tax preparer or accountant familiar with New York tax law.
• Use free tax preparation services if you qualify, such as Volunteer Income Tax Assistance (VITA).
• Call the New York State Department of Taxation and Finance for assistance.

Key Takeaways and Next Steps

• 2025 state income tax rates and brackets in New York remain unchanged from the previous year.
• Future changes will lower rates for some brackets starting in 2027 and reduce the top rate after 2032.
• Estimated tax threshold increases to $5,000 in 2026, affecting self-employed and freelance workers.
• Local taxes in New York City and Yonkers are separate and must be included in your tax planning.
• Stay informed by checking official resources and planning ahead for changes that may affect your tax bill.

As reported by VisaVerge.com, keeping up with these updates is especially important for immigrants, newcomers, and anyone with pending immigration applications, as accurate tax filing supports your legal status and access to benefits.

By understanding the current and future state income tax rates and brackets in New York, you can make better decisions about your finances, avoid surprises at tax time, and support your immigration journey. Always check official sources and seek help if you have questions about your specific situation.

Learn Today

State income tax rates → Percentages taxed on taxable income, varying by income bracket within New York state.
Tax brackets → Income ranges that determine specific tax rates applied progressively to earnings.
Estimated taxes → Payments made periodically by taxpayers without withheld income, based on projected tax liability.
Metropolitan Commuter Transportation District (MCTD) → A New York region with special payroll tax rules for employers.
Progressive tax system → Tax system where higher income amounts are taxed at higher rates progressively.

This Article in a Nutshell

New York’s 2025 income tax rates stay constant, but legislative updates promise lower rates starting 2027. Increased filing thresholds and payroll tax changes will impact employers and self-employed taxpayers. Staying informed helps residents, newcomers, and immigrants plan finances and support immigration applications effectively under evolving tax laws.
— By VisaVerge.com