When you look at your paycheck in New York, the number that really matters is your take-home pay. But before that money hits your bank account, several mandatory taxes and contributions are withheld. Understanding each deduction helps you budget better and avoid surprises at tax time.
Federal Taxes
- Federal Income Tax
- Based on your W-4 form, filing status, and taxable income.
- The IRS uses progressive tax brackets, so your rate increases as your income goes up.
- FICA Taxes (Social Security and Medicare)
- Social Security: 6.2% on wages up to the annual cap.
- Medicare: 1.45% on all wages, plus an extra 0.9% if you earn over $200,000.
New York State Taxes
- New York has a progressive state income tax system.
- Rates start around 4% and climb to 10.9% for high earners.
- Employers use your Form IT-2104 (New York’s version of the W-4) to decide how much to withhold.
- If you don’t file IT-2104, the state assumes zero allowances, which usually means higher withholding.
Local Taxes: NYC and Yonkers
- New York City Tax
- If you live in NYC, expect an additional 3.078% to 3.876% withheld.
- This applies whether you work inside or outside the city, as long as you’re a resident.
- Yonkers Tax
- Residents pay a surcharge of 16.75% of state tax liability.
- Nonresidents working in Yonkers also face a smaller withholding.
State Payroll Contributions
Besides income tax, New York requires certain payroll programs:
- Paid Family Leave (PFL): Funded by employees; covers family leave and caregiving. The rate changes yearly but is a fraction of gross pay, capped at a maximum contribution.
- Disability Insurance (SDI): A small deduction (cents per week) that funds temporary disability benefits.
Optional Deductions
Depending on your benefits package, you might also see:
- Pre-tax deductions: 401(k) or 403(b) retirement savings, health insurance premiums, flexible spending accounts.
- Post-tax deductions: Union dues, garnishments, or after-tax benefits.
Example: $5,000 Monthly Gross Pay in NYC
Here’s how taxes and deductions could look for a single filer:
| Deduction Type | Rate/Approx. Amount | Withheld |
|---|---|---|
| Federal Income Tax | ~10% | $500 |
| Social Security | 6.2% | $310 |
| Medicare | 1.45% | $72.50 |
| NY State Income Tax | ~6% | $300 |
| NYC Local Tax | ~3% | $150 |
| PFL + SDI | fixed small amount | $20 |
| Take-Home Pay | — | ~$3,647 |
Numbers vary based on your filing status, IT-2104 allowances, and benefits choices.
Frequently Asked Questions=
1. What taxes are always withheld in New York?
Federal income tax, Social Security, Medicare, and New York State income tax are standard.
2. Do I pay NYC tax if I work there but don’t live there?
No. NYC tax applies only to residents.
3. What is IT-2104 and why does it matter?
It’s New York’s withholding form. If you don’t file it, your paycheck may be over-withheld.
4. Do bonuses get taxed differently in New York?
Yes. Supplemental wages like bonuses are often withheld at a flat rate, separate from regular income.
5. What are PFL and SDI on my paycheck?
They’re small state-mandated programs that fund family leave and temporary disability benefits.
Robert is the creator of StateTaxesEstimator.com, a trusted resource dedicated to helping users accurately estimate their state taxes. With a strong focus on clarity and precision, Robert combines expert knowledge with practical tools to simplify complex tax calculations. His mission is to empower individuals and businesses to make informed financial decisions with confidence and ease.