New York Tax Guide for Employers (2026) 

New York is one of the more complex states for payroll taxes. Beyond a progressive state income tax with high rates, employers in New York City and Yonkers face additional local income taxes. The state also has mandatory disability and paid family leave programs. 

New York’s progressive state income tax features brackets with rates reaching up to 11.7% at the supplemental level. For 2026, each personal allowance is worth $1,000 and standard deductions are $7,400 for Single and $7,950 for Married. Employees complete Form IT-2104. New York City and Yonkers have their own additional withholding taxes. The state also has Disability Benefits Law (DBL) and Paid Family Leave (PFL) programs. 

New York supports the following supplemental calculation methods. When using the flat method, the supplemental rate is 11.7%. 

Your assigned SUTA rate will be based on your company’s experience with unemployment claims. New employers typically start at the default rate of 4.025%. 

New York requires employee contributions to State Disability Insurance (SDI). This is withheld from employee wages. Verify the current rate at https://www.tax.ny.gov/bus/wt/. 

New York requires contributions to New York Paid Family Leave (PFL). Both employer and/or employee contributions may apply. Verify the current rates and requirements at https://www.tax.ny.gov/bus/wt/. 

New York City imposes its own income tax (3.078%–3.876%) on NYC residents. Yonkers also imposes a local tax. NYC employers must withhold separately for NYC taxes. 

Follow these steps to begin withholding New York payroll taxes for your employees: 

1. Obtain your Federal EIN at irs.gov
2. Register with the New York State Department of Taxation at businessexpress.ny.gov
3. Register for SUTA with the New York DOL at labor.ny.gov
4. Submit a Netchex tax team request to enable NY SIT, NYC tax, SDI, PFL, and SUTA
5. Have each employee complete their tax forms with an automated onboarding task in Netchex, digitally storing tax forms
6. Configure any additional tax settings in the employee profile

Once setup is complete in Netchex, the system will automatically calculate, withhold, and remit all New York payroll taxes on your behalf. 

The following are general filing and deposit deadlines for New York payroll taxes. Deadlines may vary based on your employer size and deposit frequency. Always verify current schedules at New York State Department of Taxation and Finance. 

Note: Deadlines are subject to change. Always confirm current requirements directly with New York State Department of Taxation and Finance at https://www.tax.ny.gov/bus/wt/. 

The following official resources will help you stay current on New York payroll tax requirements: 

• New York State Department of Taxation and Finance
• New York Paid Family Leave
• New York Form IT-2104

Does New York City have its own income tax? 

Yes. NYC residents pay an additional NYC income tax of 3.078% to 3.876%, withheld separately by employers. 

What is New York’s Paid Family Leave program? 

New York PFL requires employee payroll deductions. The 2024 rate is 0.373% up to $333.25/year. Verify at paidfamilyleave.ny.gov. 

What form do New York employees complete? 

New York employees complete Form IT-2104, the Employee’s Withholding Allowance Certificate. 

What is New York’s SUTA wage base? 

New York’s SUTA wage base is $12,500 per employee per year (2025). Verify at labor.ny.gov. 

What is New York’s top state income tax rate? 

New York’s top marginal state income tax rate is 10.9% for income over $25 million.