The taxes on a New York paycheck
New York paychecks carry more separate deductions than most. On top of the federal taxes, you'll usually see:
- New York State income tax, with rates from 3.9% upward on the 2026 withholding tables
- Disability (SDI): 0.5% of wages, capped at $0.60 a week
- Paid Family Leave (PFL): 0.432% of gross wages, capped at $411.91 a year
- New York City or Yonkers tax, if you live there
New York cut several income tax rates for 2026, and the 2026 withholding tables (Publication NYS-50-T-NYS) reflect the lower rates. If your paycheck changed in January 2026, this is likely part of the reason.
How New York State withholding works
Your employer subtracts a deduction allowance from your annual wages: $7,400 if you're single or $7,950 if you're married, plus $1,000 for each dependent exemption on Form IT-2104. The calculator assumes no dependent exemptions. The rest runs through the annual tax rate schedule. Some rows on the withholding schedule have higher rates than the rows above them; they gradually recapture the benefit of the lower brackets for higher earners, as New York's tax law does.
Worked example
The same paycheck outside New York City, with no local tax, would be $126.87 higher.
New York City and Yonkers
New York City taxes its residents at rates from 2.05% to 4.25% on its 2026 withholding schedule, after a deduction allowance of $5,000 (single) or $5,500 (married). It's based on where you live, not where you work.
Yonkers residents have a surcharge withheld at 16.75% of their New York State withholding. In the example above, a Yonkers resident would pay 16.75% × $4,305.05 = $721.10 a year instead of the New York City tax.
Disability and Paid Family Leave
The two small deductions on New York pay stubs fund different programs. Disability benefits replace part of your pay if you can't work because of an off-the-job illness or injury. Paid Family Leave pays you while you bond with a new child, care for a seriously ill family member or help when a family member is deployed abroad on active military service.
Because the disability contribution is capped at 60 cents a week, almost everyone pays the maximum of $31.20 a year. Paid Family Leave is capped at $411.91, which you reach on wages of about $95,350.
Lowering your New York tax
Traditional 401(k) contributions and pre-tax health insurance lower federal, New York State and New York City income tax in this calculator. They don't lower Social Security, Medicare, SDI or Paid Family Leave. Your final New York tax, including any credits, is worked out on Form IT-201 when you file.