Personal income tax
More money
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 collected in millions of dollars from 2017 to 2021. Upward trend. 2017: approximately $48,720,000; 2018: approximately $49,999,000; 2019: approximately $52,875,000; 2020: approximately $53,140,000; 2021: approximately $67,208,000
| Calendar year | 2017 | 2018 | 2019 | 2020 | 2021 |
|---|---|---|---|---|---|
| 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.
Personal income tax returns filed from 2017 to 2021; upward trend 2017 through 2020, then quick downturn 2021. 2017: 10,635,350; 2018: 10,728,408; 2019: 10,861,338; 2020: 10,987,142; 2021: 10,816,979
Population trending downward from 2017 through 2019; upward trend from 2019 to 2020; trending down from 2020 to 2021. Population is 2017: 19,593,849; 2018: 19,544,098; 2019: 19,463,131; 2020: 20,154,933; 2021: 19,835,913
| Tax year | 2017 | 2018 | 2019 | 2020 | 2021 |
|---|---|---|---|---|---|
| Number of returns filed | 10,635,350 | 10,728,408 | 10,861,338 | 10,987,142 | 10,816,979 |
| Population | 19,593,849 | 19,544,098 | 19,463,131 | 20,154,933 | 19,835,913 |
| State | Top rate | Bracket |
|---|---|---|
| California 1,2,3 | 12.30% | $677,275 |
| Hawaii 2 | 11.00% | $200,000 |
| New York 1 | 10.90% | $25,000,000 |
| Dist. Of Columbia | 10.75% | $1,000,000 |
| New Jersey | 10.75% | $1,000,000 |
| Oregon 1,2 | 9.90% | $125,000 |
| Minnesota 1,7 | 9.85% | $183,341 |
| Vermont 1,12 | 8.75% | $229,500 |
| Wisconsin 1,13 | 7.65% | $304,170 |
| Maine 1,2 | 7.15% | $58,050 |
| Connecticut 2 | 6.99% | $500,000 |
| Montana 1,2 | 6.75% | $21,600 |
| Nebraska 1,2,14 | 6.64% | $35,730 |
| Delaware | 6.60% | $60,001 |
| West Virginia | 6.50% | $60,000 |
| South Carolina 1,14 | 6.40% | $16,040 |
| Iowa 1,14 | 6.00% | $75,000 |
| Rhode Island 1 | 5.99% | $166,950 |
| New Mexico 9 | 5.90% | $210,000 |
| Idaho | 5.80% | $0 |
| Georgia 4 | 5.75% | $7,001 |
| Maryland 5 | 5.75% | $250,000 |
| Virginia 2 | 5.75% | $17,001 |
| Kansas 2 | 5.70% | $30,000 |
| Alabama 2 | 5.00% | $3,001 |
| Massachusetts 6 | 5.00% | $0 |
| New Hampshire | 5% on dividends and interest income only | |
| Mississippi 8 | 5% above $10,000 only | |
| Illinois 1 | 4.95% | $0 |
| Missouri 1 | 4.95% | $8,449 |
| Arkansas 1 | 4.90% | $8,501 |
| Utah | 4.85% | $0 |
| North Carolina | 4.75% | $0 |
| Oklahoma 11 | 4.75% | $7,200 |
| Kentucky | 4.50% | $0 |
| Colorado | 4.40% | $0 |
| Lousiana 2,14 | 4.25% | $50,001 |
| Michigan | 4.25% | $0 |
| Ohio 1 | 3.99% | $115,300 |
| Indiana | 3.15% | $0 |
| Pennsylvania | 3.07% | $0 |
| North Dakota 1 ,10 | 2.90% | $491,350 |
| Arizona | 2.50% | $0 |
| Alaska | n/a | |
| Florida | n/a | |
| Nevada | n/a | |
| South Dakota | n/a | |
| Tennessee | n/a | |
| Texas | n/a | |
| Washington | n/a | |
| Wyoming | n/a | |
| (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 $405,550 | ||
| (14) Louisiana tax rates may be adjusted down if revenue trigger is met on April 1st. Iowa is phasing-in a flat rate by 2027, while Nebraska and South Carolina is phasing-in a reduced top rate by 2027 | ||
| Source: State Personal Income Tax Rates, 2023 | Federation of Tax Administrators | ||
Progressive tax system
New York State’s progressive tax system imposes a lower tax burden on lower income taxpayers, while nearly half of New York State’s taxes are paid by 84,000 taxpayers with the highest incomes. Millionaires paid as much as 98.9% of all filers.
Top 200: 9.5%; All other taxpayers: 90.5%
Top 200,000: 56.6%; All other taxpayers: 43.4%
Top 50%: 99.3%; lower 50%: 0.7%
| Taxpayer categories | Number of taxpayers | % of total taxpayers | Liability ($) | % of total taxes |
|---|---|---|---|---|
| Top 200 | 200 | 0.002% | $6,482,428,376 | 9.5% |
| New York source millionaires | 84,366 | 0.8% | $32,938,708,671 | 48.5% |
| Top 200K | 200,000 | 1.80% | $38,401,300,884 | 56.6% |
| Top 25% | 2,704,245 | 25.0% | $61,216,639,100 | 90.2% |
| Top 50% | 5,408,490 | 50.0% | $67,388,922,472 | 99.3% |
| Lower 50% | 5,408,489 | 50.0% | $506,780,557 | 0.7% |
| Lower 25% | 2,704,244 | 25.0% | ($929,573,738) | (1.4%) |
More millionaires
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.
General upward trend of number of millionaires in New York State from 2016 to 2021; growth of millionaires in the state in years from greatest to lowest: 2021, 2017, 2018, 2020, 2019
| Tax year | Number of millionaire filers | Change | Percent change |
|---|---|---|---|
| 2016 | 57,126 | N/A | N/A |
| 2017 | 63,352 | 6,226 | 10.9% |
| 2018 | 67,108 | 3,756 | 5.9% |
| 2019 | 68,068 | 960 | 1.4% |
| 2020 | 69,688 | 1,620 | 2.4% |
| 2021 | 84,366 | 14,678 | 21.1% |
Growth of millionaires
The number of millionaires moves loosely with the New York State economy.
Chart of the growth of millionaires relative to economic indicators from 2011 to 2022. Economic indicators are millionaires, gross state product, personal income, dividends, interest, and rent, and S&P 500.
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.
Graph showing the difference between share of returns with dependents and share of married residents filing jointly
| Year | 2017 | 2018 | 2019 | 2020 | 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.
| Filing status | 2017 | 2018 | 2019 | 2020 | 2021 |
|---|---|---|---|---|---|
| Single | 48.4% | 48.9% | 49.9% | 52.1% | 51.7% |
| 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% |
Fewer dependents
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.
| Year | 2017 | 2018 | 2019 | 2020 | 2021 |
|---|---|---|---|---|---|
| Number of dependents claimed on tax returns | 5,208,648 | 5,154,394 | 4,986,703 | 4,647,815 | 4,605,678 |
Graph of the difference between number of returns versus number of dependents claimed from 2017 to 2021
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.
Free File
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.
