Personal Income Tax

New York City imposes a personal income tax on City residents. The tax is based on the New York State personal income tax and is administered and collected for the City by the New York State Department of Taxation and Finance. In calculating the City tax, a resident uses the same filing status and taxable income as for State purposes but applies different tax rates and credits.

Earned Income Tax Credits
Federal Income Tax Rebate Information
Federal Income Tax Rebate IRS Press Release
Federal Income Tax Rebate Frequently Asked Questions

Who is Subject to this Tax?
Every income-earning individual who resides in New York City and every estate and trust must pay New York City personal income tax. Part-year City residents calculate their tax based on income and deductions for the resident period only, and they prorate certain items, such as the standard deduction and personal exemptions.

Most nonresidents of the City are not subject to any City personal income tax. However, nonresidents who are employees of the City of New York must pay the City each year an amount equal to the personal income tax they would owe if they were City residents. Nonresidents in this category are required to file NYC Form 1127.

Tax Forms and Filing Information
The City personal income tax is filed with the standard New York State personal income tax form that is mailed to Albany. As with federal and state income tax, City tax is due by April 15th.

Tax Rates
As with federal and state tax, the City personal income tax is graduated, based on the filer's income.

For 2007, the City personal income tax rates range from 2.907 percent to 3.648 percent. In addition to the basic tax, the City, like the State, imposes an add-on minimum tax on the same tax preference items as are subject to the State minimum tax, at a rate of 2.85 percent.

In calculating your City personal income tax, the following State & Federal credits are allowed:

• A nonrefundable household credit for low-income taxpayers, ranging from $10 to $30, depending on filing status;
• A refundable earned income tax credit equal to 5 percent of the earned income tax credit allowed for federal tax purposes;
• A refundable credit under the State's STAR program;
• A nonrefundable credit for sole proprietors and partners, equal to a percentage of the taxpayer’s share of the City unincorporated business tax paid at the firm or partnership level.

Tax Year 2007 New York City Personal Income Tax Rates
View Tax Rates (24k)

Legal Authority

Local Law: Title 11, Chapters 17, Administrative Code
Enabling Act: Tax Law Article 30

Contact Information

New York State Department of Taxation and Finance

Earned Income Tax Credits
The Earned Income Tax Credit (EITC) is a refundable federal income tax credit for low-income working people who have a valid Social Security number. Eligible taxpayers must be over age 24 and under age 65 and meet income requirements. Taxpayers with and without children are eligible. The EITC can lower the amount of tax a taxpayer owes or entitle them to a tax refund.

To help City taxpayers claim the EITC, Finance reviewed the 2005 tax returns of low-income New Yorkers. Based on this review, Finance mailed amended returns to City taxpayers who are eligible for the EITC in 2005, based on information they provided on their returns. 

Even if you are eligible for the EITC, you will not receive the credit unless you file for it. You must claim the Earned Income Tax Credit when you file your tax returns or file an amended return three years after the initial filing deadline.   

Did You Receive an Amended Return from Finance?
If you received an amended return from Finance, you have until April 2008 to submit your 2004 tax return and your EITC application for 2004. The deadline for filing for the 2005 EITC is April 15, 2009, and eligible taxpayers can also file for the 2006 EITC by April 2010. 

To see if Finance mailed you an amended tax return so you can claim the EITC, click here.

Information has been revised to reflect final mailing results as of February 28, 2008.

If you or someone you know may be eligible for the EITC for 2007, you should apply for it when you file your return this coming April.

Further Information
For details about the EITC, worksheets, examples, and forms, visit the IRS or NYC Department of Consumer Affairs web sites or speak with a qualified tax preparer.

NYC Department of Consumer Affairs
Internal Revenue Service (IRS) Website

Frequently Asked Questions about the Earned Income Tax Credit (EITC)
 Download FAQs (211k)