New York taxes

Personal income and residency

New York has resident, part-year resident and nonresident personal income tax filings. Nonresidents report New York-source income; part-year residents also report income during the resident period. Check the applicable return instructions before allocating income. [1]

Domicile is one residency test. A separate statutory-residency test can apply when you maintain a permanent place of abode in New York for substantially all the tax year and spend 184 days or more there. The agency lists exceptions and special rules; days alone do not settle domicile. [2]

New York City and Yonkers have additional income-tax rules addressed in the return instructions. Determine city status separately from state status. [1]

Investments and a move

New York-source income can include income from property or a business in New York. A move requires a resident-period and source-income analysis rather than simply applying the move date to every payment. Consult Form IT-203 for the allocation rules. [1]

Retirement

Social Security benefits included in federal adjusted gross income may be subtracted for New York purposes. Qualifying New York State, local-government and federal-government pension distributions have separate subtraction rules. [3]

Eligible taxpayers age 59½ or older may exclude up to $20,000 of qualified pension and annuity income. If you turn 59½ during the year, only eligible income received on or after that date qualifies. Each qualifying spouse has a separate limit, and unused exclusion cannot be transferred between spouses. Inherited benefits and the definition of qualified income require the agency’s detailed rules. [3]

Sales and use tax

The state sales and use tax rate is 4%. City, county or school-district rates can add to it; taxable sales in the Metropolitan Commuter Transportation District also carry a 0.375% rate. Look up the combined rate for the location. [4]