New York City is one of the few cities in the country that have their own income tax.  The city also has the distinction of having the highest cigarette tax in the nation.  And it doesn’t stop there, the state of New York is known for having some of the highest property taxes in the nation as well.

New York City Property Tax

New York City Department of Finance values New York City residential and commercial properties.  A tentative value assessment is sent out each January.  If there are no changes, the final assessment is sent out in May.  New York City assessments are based on percentages of market value with those percentages varying depending on the type of property.  If you do not agree with your assessment, you can appeal it.

Property tax rates are set each year by the Mayor and City Council.  Property tax rates usually range from about 10% to 17% depending on the type of property.    These tax rates are applied to property values to help determine each homeowner’s annual tax liability.  Property tax bills are sent out each year in June and payments are due either in two (semi-annual) or four (quarterly) payments.

New York City has several exemptions and property tax reductions available including exemptions for senior citizens, veterans, and the disabled.  The New York State STAR exemption for owner-occupied housing is also available as well as property tax abatements (or reductions) for certain individuals.

More information on Property taxes in New York State

New York City Income Tax

New York City has a separate city income tax in addition to the state income tax for individuals.  New York City income tax rates range from 2.907% to 3.648%.  The tax rate you will pay depends on your income level and filing status.  The New York City income tax is based on your New York State taxable income, so there are no city-specific deductions.  There are tax credits that specifically offset New York City income tax however.

More information on New York City income tax

Other New York City Taxes:

Sales tax:  4.5% in addition to the state sales tax of 4% and the Metropolitan Commuter Transportation District (MCTD) surcharge of 0.375%.  This makes the total sales and use tax rate in New York City 8.875%.   Food, prescription drugs, and non-prescription drugs are exempt.  Clothing and footwear costing less than $110 per item or pair is also exempt.

Cigarette tax: New York City has their own cigarette of $1.50 per pack of 20 cigarettes.  This is in addition to the state cigarette tax of $4.35 for a total cigarette tax in NYC of $5.85 per pack.

Hotel taxes:  For any room costing more than $40 a night, the state and local tax is equal to: $3.50 per night, plus 14.375% of room rental charges.  This tax rate includes NYC and state sales taxes as well as the hotel occupancy tax of 5.875%.  Rooms renting for less than $40 are subject to the same rates, but lower nightly dollar amount fees.

Taxicab ride tax:  Medallion owners or their agents pay a 50 cent tax per cab ride that either ends in New York City or starts in New York City and ends in Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, or Westchester counties.  This tax is generally passed on to customers.

More information on NYC taxes: NYC Department of Finance