The New York State Department of Taxation and Finance collects tax revenues that fund services and programs that benefit New Yorkers. As we emerge from the COVID-19 pandemic, tax collections are strong. Collections from the state’s personal income tax, corporation tax, sales tax, and property tax all increased in 2021. Tax collection summaries and trends are highlighted below. For more detailed information about tax collections, see View data.
Tax Facts reports the Tax Department’s latest tax information and trends. This information is compiled using state tax records, IRS data, U.S. Postal Service data, U.S. Census data, and various other state and national sources. Since tax data is based on previous years' returns, and returns can continue to flow in for years after a due date, some data may be lagged and subject to revision. Also, data is collected and presented in various ways (including tax year, calendar year, cumulative) to provide varied and current perspectives, which fulfill differing analytical purposes and reporting requirements.
Personal income tax
The Tax Department collected more than $67 billion in personal income taxes in 2021. This is the state’s largest revenue source, supporting programs and services including education ($41.2 billion), health ($28 billion), and public safety ($2.8 billion).
|Personal income tax collections (in millions of dollars)||$48,720.0||$49,999.2||$52,874.5||$53,140.4||$67,207.5|
Fewer tax filers
More than 10.8 million individual taxpayers filed personal income taxes in New York in 2021, down from almost 11 million in 2020 when the COVID-19 pandemic hit.
|Number of returns filed||10,635,350||10,728,408||10,861,338||10,987,142||10,816,979|
|New York 1||10.90%||$25,000,000|
|Dist. Of Columbia||10.75%||$1,000,000|
|South Carolina 1,14||6.40%||$16,040|
|Rhode Island 1||5.99%||$166,950|
|New Mexico 9||5.90%||$210,000|
|New Hampshire||5% on dividends and interest income only|
|Mississippi 8||5% above $10,000 only|
|North Dakota 1 ,10||2.90%||$491,350|
|(1) 16 states have statutory provision for automatically adjusting to the rate of inflation the dollar values of the income tax brackets, standard deductions, and/or personal exemptions. Oregon does not index the income brackets for $125,000 and over.|
|(2) For joint returns, taxes are twice the tax on half the couple’s income|
|(3) California imposes an additional 1% tax on taxable income over $1 million, making the maximum rate 13.3% over $1 million.|
|(4) The Georgia income brackets reported are for single individuals. For married couples filing jointly, the same tax rates apply to the top income bracket of $10,000|
|(5) The income brackets reported for Maryland are for single individuals. For married couples filing jointly, the same tax rates apply to the top income bracket of $300,000.|
|(6) Short-term capital gains in Massachusetts is taxed at 12% rate. An additional tax of 4% on income of $1 million|
|(7) The income brackets reported for Minnesota are for single individuals. For married couples filing jointly, the same tax rates apply to the top income bracket of $304,971|
|(8) Mississippi rate decreases in 2024 to 4.8% if net general revenue goal is met.|
|(9) The income brackets reported for New Mexico are for single individuals. For married couples filing jointly, the same tax rates apply to the top income bracket of $315,000.|
|(10) The income brackets reported for North Dakota are for single individuals. For married couples filing jointly, the same tax rates apply to the top income bracket of $491,350.|
|(11) The income brackets reported for Oklahoma are for single persons. For married persons filing jointly, the same tax rates apply to the top income bracket of $12,200.|
|(12) Vermont’s income brackets reported are for single individuals. For married taxpayers filing jointly, the same tax rates apply to the top income bracket of $279,450.|
|(13) The Wisconsin income brackets reported are for single individuals. For married taxpayers filing jointly, the same tax rates apply to the top income bracket of $405,550|
|(14) Louisiana tax rates may be adjusted down if revenue trigger is met on April 1st. Iowa is phasing-in a flat rate by 2027, while Nebraska and South Carolina is phasing-in a reduced top rate by 2027|
|Source: State Personal Income Tax Rates, 2023 | Federation of Tax Administrators|
Progressive tax system
New York State’s progressive tax system imposes a lower tax burden on lower income taxpayers, while nearly half of New York State’s taxes are paid by 84,000 taxpayers with the highest incomes. Millionaires paid as much as 98.9% of all filers.
|Taxpayer categories||Number of taxpayers||% of total taxpayers||Liability ($)||% of total taxes|
|New York source millionaires||84,366||0.8%||$32,938,708,671||48.5%|
The number of tax returns reporting $1 million or more in income increased from 69,688 to 84,366 in 2021—the highest number in recent New York State history.
|Tax year||Number of millionaire filers||Change||Percent change|
Growth of millionaires
The number of millionaires moves loosely with the New York State economy.
Tax filing composition in New York State is changing
The share of residents claiming dependents on their tax filings dropped by more than 4 percentage points between 2017 and 2021.
|Percentage of returns with dependents||33.6%||33.1%||31.7%||29.1%||29.5%|
More single filers
Tax filing status distribution also shifted with single filers now comprising a majority of resident income tax returns.
|Married filing jointly||32.8%||32.6%||31.9%||30.3%||30.3%|
|Head of household||16.3%||16.1%||15.5%||14.7%||15.1%|
|Married filing separately||2.3%||2.4%||2.6%||2.8%||2.9%|
The number of dependents reported on New Yorkers’ tax returns markedly declined over the past 5 years. Residents claimed 600,000 fewer dependents in 2021 than 5 years ago.
|Number of dependents claimed on tax returns||5,208,648||5,154,394||4,986,703||4,647,815||4,605,678|
Additional child tax credit payments
More than 1.1 million families received nearly $223 million in additional Empire State child credit payments, helping to reduce child poverty in New York State. These critical payments supplemented $544.4 million in Empire State child credits claimed on 2021 tax returns.
Additional earned income credit payments
New York State returned more than $164 million in additional earned income credit payments to more than 840,000 state taxpayers to help combat inflation. That’s on top of $727.5 million in earned income credits claimed on their 2021 tax returns.
Most New York State taxpayers can file their tax returns electronically, using guided software, for free. More than 188,000 taxpayers used the Tax Department’s Free File option in 2022.
Taxpayers changed addresses
New York State taxpayers changed their addresses to out of state addresses in recent years, with a noticeable increase after the start of COVID-19 in 2020.
Millionaires changed addresses
The impact of the COVID-19 pandemic is even more noticeable on millionaires, who were even more likely to change to out of state addresses during that period.
|Tax year||Number of millionaire filers who left the state||Change||Percent change|
Outmigration of millionaires has increased over the years, with the wealthiest millionaires (those with incomes greater than $25 million) relocating at increased rates in 2021.
IRS data shows that population outflow is concentrated in people between the ages of 26 and 44 and those with higher incomes.
Recent New York State net outflow by income and age groups
IRS state-to-state migration data: 2019–2020
Headed for New Jersey
IRS data shows that New Yorkers relocating out of state are most likely to move to New Jersey. Others have relocated to other neighboring states, warmer states, and states with lower tax rates.
At the same time, people are moving into New York State from similar states.
For comparison purposes, the graph below shows inflows and outflows from the same ten states that New Yorkers were most likely to move to.
10 States of largest net outflow of individuals from New York State
Individual income tax returns: state-to-state migration outflow for selected income items, calendar years 2019–2020
Source: IRS Individual Master File, Statistics of Income, May 2022
Inflow and outflow over time
Population inflows and outflows from New York State increase over time, with net outflows peaking in 2019–2020, the last year for which IRS data is available.
Millionaires tend to migrate out of the state when they are older.
New York State collected more than $8 billion in corporation taxes in 2021. This is an increase of $1.4 billion from 2020.
|Corporation tax collections (in millions of dollars)||$4,914.90||$5,191.50||$6,323.40||$6,577.50||$8,047.50|
Effective tax reform
New York State’s corporate tax reform was implemented in 2015 to ease the compliance burden on businesses operating in the state. The number of corporations and tax liability has grown steadily since.
|Tax liability year||2015||2016||2017||2018||2019||2020 (preliminary)|
|Number of taxpayers||281,374||284,605||293,302||302,909||311,233||308,465|
|Liability (in millions of dollars)||$3,238.5||$2,836.5||$2,710.4||$4,037.5||$4,052.0||$3,496.8|
Corporation franchise tax
The corporate tax burden is primarily carried by less than 1% of taxpayers. Their share of the total tax has risen from 65% to almost 74%. More than 80% of corporation taxpayers pay less than $1,000 in tax.
|Tax year||Tax amount||Number of taxpayers||Percent of total taxpayers||Tax in millions||Percent of total tax|
|2015||less than or equal to $999||219,150||77.89%||33.4||1.03%|
|greater than or equal to $1 million||478||0.17%||2,152.3||66.46%|
|2016||less than or equal to $999||224,212||78.78%||37.6||1.33%|
|greater than or equal to $1 million||406||0.14%||1,869.5||65.91%|
|2017||less than or equal to $999||232,406||79.24%||37.1||1.37%|
|greater than or equal to $1 million||394||0.13%||1,757.8||64.86%|
|2018||less than or equal to $999||240,874||79.52%||37.7||0.93%|
|greater than or equal to $1 million||494||0.16%||2,965.1||73.44%|
|2019||less than or equal to $999||249,720||80.24%||38.8||0.96%|
|greater than or equal to $1 million||474||0.15%||2,988.5||73.75%|
|2020 (preliminary)||less than or equal to $999||252,343||81.81%||34.8||1.00%|
|greater than or equal to $1 million||433||0.14%||2,446.1||69.95%|
Roughly 1,300 insurance taxpayers remit approximately $2 billion annually through the state’s insurance tax.
More corporate taxes
1,400 utility, telecommunications, and transportation companies pay $730 million annually under the state’s corporation tax.
Competitive tax rates
New York State has the 16th highest corporate tax rate in the country—and one of the lowest rates in the Northeast.
|New Jersey (e)||11.50%||$1,000,000|
|(a) Connecticut has historically charged a 10% surtax on a business’s tax liability if it has gross proceeds of $100 million or more, or if it files as part of a combined unitary group. This surtax expired on January 1. Legislators have extended the surtax in the past and will decide whether to do so again this session.|
|(b) Nevada, Ohio, Texas, and Washington do not have a corporate income tax but do have a gross receipts tax with rates not strictly comparable to corporate income tax rates. Delaware, Oregon, and Tennessee have gross receipts taxes in addition to corporate income taxes, as do several states like Pennsylvania, Virginia, and West Virginia, which permit gross receipts taxes at the local (but not state) level.|
|(c) Georgia’s corporate income tax rate will revert to 6% on January 1, 2026.|
|(d) Illinois’ rate includes two separate corporate income taxes, one at a 7% rate and one at a 2.5% rate.|
|(e) In New Jersey, the rates indicated apply to a corporation’s entire net income rather than just income over the threshold. A temporary and retroactive surcharge is in effect from 2020 to 2023, bringing the rate to 11.5% for businesses with income over $1 million.|
|Note: In addition to regular income taxes, many states impose other taxes on corporations such as gross receipts taxes and capital stock taxes. Some states also impose an alternative minimum tax and special rates on financial institutions.|
|Sources: Tax Foundation; state tax statutes, forms, and instructions; Bloomberg Tax.|
Economic development tax credits
The Tax Department administers more than $1.6 billion in tax credits across more than 60 economic development incentives, which help businesses grow, hire, and expand.
Transportation mobility tax
The metropolitan commuter transportation mobility tax (MCTMT) is imposed on certain businesses within the metropolitan commuter transportation district (MCTD) to fund critical transportation infrastructure in the downstate and New York City regions. Approximately 25,000 businesses pay more than $1.5 billion in tax. The number of taxpayers and payments declined in 2020 due to the COVID-19 pandemic, but showed signs of recovery in 2021.
|Payroll range||Rate||Year||Number of taxpayers||Tax due (in millions of dollars)|
Greater than $312,500 and equal to or less than $375,000
|Greater than $375,000 and equal to or less than $437,500||0.23%||2019||2,418||$10.1|
|Greater than $437,500||0.34%||2019||20,267||$1,729.8|
Sales and miscellaneous taxes
Collections of sales and use taxes increased by more than $2.4 billion to $17.9 billion in 2021, exceeding pre-COVID collections.
|Use taxes and fees||$15,610.7||$16,265.8||$16,864.5||$15,461.9||$17,890.2|
|Sales and use||$13,484.5||$14,118.9||$14,798.6||$13,449.8||$15,866.6|
|Cigarette and tobacco products||$1,182.5||$1,127.7||$1,051.4||$1,017.8||$975.5|
|Alcoholic beverage tax||$260.0||$260.7||$263.2||$268.2||$277.3|
|Highway and fuel use||$91.6||$146.7||$140.6||$134.3||$143.8|
|Auto rental tax||$76.3||$83.2||$83.9||$58.5||$78.4|
Fewer vendors collect more sales tax
In 2021, 568,359 businesses collected $15.8 billion in state sales tax. This is an 18% increase in collections from 2020, by 1.3% fewer vendors.
|Sales and use tax collections (in millions of dollars)||$13,484.5||$14,118.9||$14,798.6||$13,449.8||$15,866.6|
|Number of sales tax vendors||551,398||547,738||558,516||576,058||568,359|
New York State offers tax exemptions on food, clothing, residential energy, Internet charges, and cable television, as well as a motor fuel tax cap. These exemptions save consumers more than $6.6 billion on staples and necessities every year.
|Consumer item||Description||Annual consumer savings ($)|
|Food||Exempt from tax are food, food products, beverages, dietary foods, and health supplements sold for human consumption||$2.1 billion|
|Clothing||Exempt from tax are items of clothing and footwear costing less than $110||$1 billion|
|Residential energy||Wood used for residential heating purposes, fuel oil, propane, natural gas, electricity and steam, and gas, electric, and steam services used for residential purposes are exempt from the state sales tax||$1 billion|
|Internet charges||Internet access service is exempt from the sales tax||$750 million|
|Cable television||Cable television service is exempt from the sales tax||$550 million|
|Motor fuel tax cap||Exempt from tax is any portion of the motor fuel taxable receipt that exceeds $2 per gallon||$250 million|
Industry shares of sales tax receipts
In 2021, the bulk of sales and use tax receipts were derived from retail trade and services industries. The primary driver of the year-over-year increases in 2021 was the easing of COVID restrictions that had been in place throughout much of 2020.
|2021 industry taxable sales*||Industry share of total taxable sales (%)||Year-to-date change compared to 2020 (%)|
*Based on sales tax liability period of March 2021 through February 2022. Liability data may not match collections data due to late payments, amended returns, adjustments, and so on.
**Includes unclassified vendors, agriculture, mining, transportation, education, finance, insurance, real estate, and government.
Property tax growth in New York State averages about 3% annually, supporting school districts and local governments and services in municipalities.
|Property tax collections (in billions of dollars)||$55.15||$56.85||$58.79||$61.28||$62.85|
Working with local governments
The Tax Department’s Office of Real Property Tax Services (ORPTS) works with more than 1,000 local governments that collect more than $68 billion in property taxes.
More than 2.9 million New Yorkers received more than $2.5 billion in STAR benefits, reducing their school taxes in 2022.
|Number of STAR recipients statewide||3,088,720||3,043,897||2,993,635||2,932,444|
|Number of STAR exemptions statewide||2,525,937||2,365,657||2,222,250||2,054,641|
|Number of Basic STAR recipients||2,439,325||2,378,466||2,337,046||2,260,976|
|Number of Enhanced STAR recipients||649,395||665,431||656,589||671,468|
|Number of STAR credits statewide||562,783||678,240||771,385||877,803|
|Savings to property owners ($)||$2,672,203,368||$2,616,442,854||$2,559,092,015||$2,516,218,936|
|Statewide STAR credit savings||$476,861,699||$572,063,090||$649,629,804||$735,497,004|
Property tax rates
In 2020, property taxes imposed by local governments in New York State were $4.34 per $100 of personal income. This was the 6th highest amount as a percentage of personal income in the nation (ME, NJ, NH, CT, and RI were higher by this measure) and $1.42 above the national average of $2.92 per $100 of personal income.
Homeowner tax rebate credits
New York State issued more than 2.4 million homeowner tax rebate credit payments totaling more $1.9 billion in 2022.
Comparisons with other states
|Coefficient of Variation||24.02||55.29||36.00||65.50||105.63|
|NYS Diff. from Mean||0.32||1.74||26.4||(0.93)||(17.7)||0.04||0.1||(0.52)||(8.8)|
|Source: Moody's Economy.com, U.S. Census Bureau|
|Source: Moody's Economy.com, U.S. Census Bureau|
|Note: "Other" includes NYC imposed taxes and all other categories.|
|State||State Taxes||Local Taxes||State/Local Total||Total Rank|
|Coefficient of Variation||24.02||25.60||15.16|
|NYS Diff. from Avg.||0.32||3.56||3.88|
|Source: Moody's Economy.com, U.S. Census Bureau|
|State||State PIT||Local PIT||State Corporate||Local Corporate||State Sales||Local Sales||Local Property||All Other||Total State/Local|
|Coefficient of Variation||55.29||272.55||65.50||431.79||36.00||84.54||34.71||88.00||15.16|
|NYS Diff. from Avg.||1.74||0.86||0.04||0.43||(0.93)||0.76||1.42||(0.44)||3.88|
|Source: Moody's Economy.com, U.S. Census Bureau|
|State||Top PIT Rate||Highest Tax Bracket (Married Filing Joint)||Top Corp. Rate||State Sales Rate||Combined State and Local Sales Tax Rate1|
|North Carolina||4.99||Flat Rate||2.5||4.75||7.0|
|Coefficient of Variation||62.44||42.41||38.65||36.81|
|"-" indicates either no tax or a tax that is not strictly comparable is imposed.|
|1Source: Tax Foundation as of July 1, 2022. Reflects combined state and average local rate for each state.|
|2PIT: Indicates states with distinct treatment of certain types of income. New Hampshire only taxes interest and dividends (at a rate of 5 percent), Washington only taxes capital gains (at a rate of 7 percent), and Massachusetts taxes short-term capital gains at a higher rate (12 percent) than other income (5 percent).|
The Tax Department processed 28.8 million returns in 2022, nearly half of which were personal income tax returns.
The Tax Department administers more than 80 different tax credits worth more than $4 billion annually.
Audits and enforcement
The Tax Department’s Audit Division performs diverse audit, compliance, and enforcement activities involving personal income tax, corporation tax, sales and transaction taxes, and more than 20 miscellaneous taxes. The number of cases closed increased by 52% in 2022.
Civil enforcement collections
Tax revenue collected by the Civil Enforcement Division (CED) has trended up, with the exception of 2021 when the Tax Department suspended active collections for most of the fiscal year because of COVID-19.
Installment payment agreements
Taxpayers who can’t pay their tax balance by the due date can request an installment payment agreement (IPA) online. An IPA enables qualifying taxpayers to make scheduled, monthly payments for up to 36 months. More taxpayers than ever took advantage of this service in 2022.
The Tax Department’s Criminal Investigations Division conducted nearly 5,000 regulatory cigarette inspections since 2019. Almost 40% of inspected retailers were noncompliant, resulting in the seizure of more than 23,000 cartons of illegal cigarettes.
Increasing online services
More than 6.1 million state taxpayers now have Online Services accounts with the Tax Department. These filers can make payments, check their refund statuses, respond to department notices, and communicate directly with the department for many purposes.
The Tax Department registers thousands of vendors to sell taxable products and services every year.
|Tax registration type||Active taxpayers|
|Sales tax Certificate of Authority||558,895|
|Cigarette tax Certificate of Registration (only)—retailer||5,459|
|Vapor tax Certificate of Registration (only)—retailer (began November 2019)||426|
|Cigarette or tobacco and vapor taxes Certificate of Registration (both)—retailer||7,545|
|Highway use tax (HUT) and automotive fuel carrier (AFC)||121,422|
|International Fuel Tax Agreement (IFTA)||9,079|
|Petroleum business tax||1,523|
|Alcohol beverage tax||3,239|
|Tobacco distributors and wholesalers||325|
|Cigarette agents and wholesalers||163|
|Cigarette chain stores||1,101|
The Tax Department is reducing mail correspondence, including offering 131 notices electronically and sending email reminders to taxpayers who do business electronically with the department.
More Web traffic
In 2022, www.tax.ny.gov had nearly 90 million pageviews, with a high of 1.2 million on April 18, 2022.
The Tax Department’s call center answers more than 1.9 million calls each year, many from taxpayers who speak languages other than English. The department contracts with a translation vendor to expand the call center’s ability to assist callers in many languages.