How does New York’s tax code compare? New York has a graduated state individual income tax, with rates ranging from 4.00 percent to 10.90 percent. There are also jurisdictions that collect local income taxes, principally New York City with a top rate of 3.876 percent.
New York has a graduated corporate income tax, with rates ranging from 6.5 percent to 7.25 percent. New York also has a 4.00 percent state sales tax rate and an average combined state and local sales tax rate of 8.54 percent. New York has a 1.26 percent effective property tax rate on owner-occupied housing value.
New York has an estate tax. New York has a 24.87 cents per gallon gas tax rate and a $5.35 cigarette excise tax rate (per pack of 20 cigarettes). The State of New York collects $12,685 in state and local tax collections per capita. New York has $17,846 in state and local debt per capita and a 93 percent funded ratio of public pension plans. New York’s tax system ranks 50th overall on the 2026 State Tax Competitiveness Index.
Each state’s tax code is a multifaceted system with many moving parts, and New York is no exception. The first step toward understanding New York’s tax code is knowing the basics. How does New York collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures 2025: How Does Your State Compare?
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