New York City, NY Taxes 2025
Complete local tax guide and OBBBA calculator
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New York City Tax Overview 2025
NYC has its own income tax on top of state tax. Combined with high cost of living, OBBBA provides significant federal relief.
Local Income Tax
3.078% - 3.876%
City/county rate
Sales Tax
8.88%
State + local
Property Tax
0.88%
Effective rate
Median Home
$760,000
Home value
State Tax Information
New York City is located in New York (4% - 10.9% state income tax)
💼 New York City Local Income Tax
New York City imposes a local income tax of 3.078% - 3.876% on residents. This is in addition to any state income tax you may owe to New York.
Local income taxes are common in Ohio, Pennsylvania, and a few other states. They're typically withheld from your paycheck if you work in New York City, regardless of where you live.
Total Income Tax Burden in New York City
🛒 New York City Sales Tax 2025
The combined sales tax rate in New York City is 8.88%. This includes both the New York sales tax and any local sales taxes.
Sales tax applies to most retail purchases in New York City. Some items like groceries, prescription medications, and clothing may be exempt or taxed at reduced rates depending on New York law.
Sales Tax Breakdown
Sales Tax Examples
| Purchase Amount | Sales Tax | Total |
|---|---|---|
| $50 | $4.44 | $54.44 |
| $100 | $8.88 | $108.88 |
| $500 | $44.38 | $544.38 |
| $1,000 | $88.75 | $1,088.75 |
🏠 New York City Property Tax 2025
The average effective property tax rate in New York City is 0.88%. Based on the median home value of $760,000, the typical homeowner pays approximately $6,688 per year in property taxes.
Property taxes fund local services including schools, police, fire departments, roads, and parks. Rates vary by specific location within New York City based on school district and other taxing authorities.
Estimated Annual Property Tax in New York City
| Home Value | Annual Tax | Monthly | SALT Deductible? |
|---|---|---|---|
| $200,000 | $1,760 | $147 | ✓ Yes |
| $300,000 | $2,640 | $220 | ✓ Yes |
| $400,000 | $3,520 | $293 | ✓ Yes |
| $500,000 | $4,400 | $367 | ✓ Yes |
| $750,000 | $6,600 | $550 | ✓ Yes |
| $1,000,000 | $8,800 | $733 | ✓ Yes |
💡 SALT Tip: Under the OBBBA, you can deduct up to $40,000 in state and local taxes (SALT) on your federal return. This includes property taxes, state income taxes, and local income taxes.
💰 New York City Cost of Living
Housing Costs
Tax Summary
OBBBA Tax Benefits for New York City Residents
NYC service workers, especially in hospitality, can save thousands with the tips deduction.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several federal tax deductions that can significantly reduce your tax burden as a New York City resident.
Available OBBBA Deductions:
Calculate Your New York City Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a New York City resident.
Calculate My SavingsFrequently Asked Questions
What is the sales tax in New York City?
The combined sales tax rate in New York City is 8.88%. This includes both state and local sales taxes.
Does New York City have a local income tax?
New York City has a local income tax of 3.078% - 3.876%. This is in addition to any state and federal income taxes.
What is the property tax rate in New York City?
The average effective property tax rate in New York City is 0.88%. On a home worth $760,000, you'd pay approximately $6,688 per year.
How do OBBBA deductions benefit New York City residents?
NYC service workers, especially in hospitality, can save thousands with the tips deduction. You can use our free calculator to estimate your total savings from tips, overtime, auto loan interest, SALT, and senior bonus deductions.