New York Payroll Tax Calculator

Before cashing out your paycheck, there is a lot subtracted from your gross pay. While you may be making an “x” amount, your take-home pay is always going to be different due to taxes and cuts. 

This is something that those working in New York know very much about as there are several cuts other than just federal income tax withholdings. Here is everything you need to know to calculate your take-home salary after deducting everything.

How to calculate New York payroll tax?

Before calculating state income tax withholdings, let’s take a look at New York tax rates. The lowest marginal tax rate in the New York tax brackets is 4 percent, and the highest is 10.9 percent. In order, the marginal tax rates are 4 percent, 4.5 percent, 5.2 percent, 5.9 percent, 5.97 percent, 6.33 percent, 6.85 percent, 9.65 percent, 10.3 percent, and 10.9 percent.

There is a significant difference in taxable income in New York tax brackets. The highest most taxpayers are subject to is the 6.85 percent tax bracket, which applies to taxable income between $215,401 and $1,077,550. You’re most likely to pay less if you’re making under the initial amount.

Determine how much you’ll take home by calculating your state income tax rate after determining federal income tax withholding. After calculating the state income tax withholding per pay period, note the amount; you’ll need it for later. 

One thing you should keep in mind when calculating federal income tax is the tax credits you qualify. For example, someone with two qualifying children can claim $7,200 in child tax credit, significantly reducing their tax liability. Factoring in this or similar tax credits is a must as it plays a substantial role in how much you’re going to pay in federal income taxes.

FICA and state insurance taxes 

Aside from Social Security and Medicare taxes, which we’ll get to in a minute, the State of New York requires workers to pay 0.09 percent on state family leave insurance and 0.03 percent on state disability insurance taxes. 

Calculate these accordingly and take them out of the above amount. Now, take your gross income and take out the FICA taxes, which are 6.2 percent and 1.45 percent, respectively. However, you may be subject to additional Medicare withholding. If that’s the case for you, you need to add an extra 0.9 percent. Learn more about additional Medicare withholding and see if you’re subject to it. 

Pre-tax contributions

Whether it’s an HSA, 401(k), or IRA, some of your contributions to these accounts grow tax-free for the time you contribute. If you’re funding any of these accounts or similar that are funded with pre-tax dollars, take them out and what you’ll be left is your take-home pay. 

Calculating New York payroll is as simple as that. Make sure to use a calculator and note everything along the way to see where your money goes.

For reference, someone working in New York making $50,000 takes about $2,905 to home in net salary or about $34,860 annually. 

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