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The State of New York income tax is 4% to 8.82%. A single person making the Long Island median household income of $112,365 would pay about $6,170 per year in state income taxes. If you live on Long Island but work in New York City, you may be subject to an additional NYC income tax of 3.078% to 3.876%.
As a non-resident, you only pay tax on New York source income, which includes earnings from work physically performed in New York State, and income from real property. You are not liable for city tax.
New York's "convenience rule" permits state tax authorities to tax NY-based employees for days worked remotely in a location outside of NYS. New York imposes a tax on non-residents for income "derived from sources in" New York, including income from a "business, trade, profession or occupation carried on" in the state.
In general, if you're working remotely you'll only have to file and pay income taxes in the state where you live. However, in some cases, you may be required to file tax returns in two different states. This depends on your particular situation, the company you work for, and the tax laws of the states involved.
As a resident, you pay state tax (and city tax if a New York City or Yonkers resident) on all your income no matter where it is earned. As a nonresident, you only pay tax on New York source income, which includes earnings from work performed in New York State, and income from real property located in the state.
While you do have to file taxes with New York and New Jersey, you don't have to pay double taxes. New Jersey residents will receive a tax credit on their New Jersey return for any tax paid to New York, or another state, on income earned in and taxed to both states.
You are subject to New York State tax on income you received from New York sources while you were a nonresident and all income you received while you were a New York State resident. You may have to pay income tax as a resident even if you are not considered a resident for other purposes.
Table of ContentsAvoid or Defer Income Recognition.Max Out Your 401(k) or Similar Employer Plan.If You Have Your Own Business, Set Up and Contribute to a Retirement Plan.Contribute to an IRA.Defer Bonuses or Other Earned Income.Accelerate Capital Losses and Defer Capital Gains.Watch Trading Activity In Your Portfolio.More items...
New York-Based Employees Who Work Remotely Out-of-State Are Subject to New York Income Tax. New York State taxes New York residents on worldwide income and nonresidents only on New York source income.
YES. If you live in Jersey City or anywhere in New Jersey and commute to New York, you have to file in both states. In fact, if you are commuting, your employer is required to withhold your New York taxes and even report your wages earned to New Jersey.