When that bonus finally hits your paycheck, it’s easy to wonder: “How much will New York State take out?” Bonuses aren’t treated like free money—they’re considered taxable income, and New York has specific rules for how they’re taxed. Let’s walk through what you can expect.
Quick Answer: New York Bonus Tax Rate
- New York State supplemental withholding rate: 11.70%
- New York City residents: additional up to 4.25%
- Yonkers residents: 1.95975% (nonresidents 0.50%)
- Federal bonus withholding: 22% flat (37% if over $1 million)
- FICA taxes: 6.2% Social Security + 1.45% Medicare (plus 0.9% extra for high earners)
👉 In short, your bonus can face 30–40% combined withholding once federal, state, and local taxes are stacked.
How New York Taxes Your Bonus
1. State Supplemental Rate
If your employer issues your bonus separately from your paycheck, New York requires them to withhold 11.70%. This is known as the supplemental flat rate method.
2. Aggregate Method
If your bonus is bundled with your regular paycheck, the total amount may be taxed using your normal tax bracket. This sometimes means higher withholding than the flat rate.
3. Local Taxes
Living in New York City or Yonkers means additional local withholding:
- NYC: 3%–4.25% depending on income.
- Yonkers: 1.95975% for residents, 0.50% for nonresidents.
Real-World Example: $10,000 Bonus
Let’s see how a $10,000 bonus might break down for a NYC resident:
| Deduction | Amount |
|---|---|
| Federal tax (22%) | $2,200 |
| NY State tax (11.70%) | $1,170 |
| NYC tax (approx. 3.9%) | $390 |
| Social Security (6.2%) | $620 |
| Medicare (1.45%) | $145 |
| Total Withheld | $4,525 |
| Net Bonus Take-Home | $5,475 |
👉 Your take-home could be a little over half of what’s promised.
Will You Get Some of It Back?
Yes. Withholding isn’t always the same as your final tax liability. When you file your New York State return, the bonus is added to your yearly income, and credits or deductions may reduce what you ultimately owe. If your employer withheld more than necessary, you’ll see part of it come back as a refund.
Common Questions About NY Bonus Taxes
1. What is the New York State tax rate on bonuses?
It’s a flat 11.70% for supplemental wages.
2. Do NYC and Yonkers residents pay extra?
Yes—NYC up to 4.25%, Yonkers up to 1.95975%.
3. Are bonuses taxed more than salary?
Not really. They’re just subject to special withholding rules.
4. How much will I keep from a $5,000 bonus in New York?
Expect to keep around $2,700–$3,200 after taxes, depending on where you live.
5. Can I reduce taxes on my bonus?
Deferring income to retirement accounts (401k, IRA) or adjusting withholdings may help.
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.