If you live or work in New York, you’ve probably wondered how much of your paycheck you actually keep after taxes. Between federal income tax, FICA, New York State income tax, and city taxes (for NYC and Yonkers), your take-home pay can look much smaller than your gross salary.
This guide walks you through exactly how to calculate taxes from your paycheck in New York, with examples, tables, and tips to help you estimate your net income — whether you’re salaried or paid hourly.
Step 1: Start with Your Gross Pay
Your gross pay is the total amount you earn before any taxes or deductions are taken out.
- If you earn $70,000 per year, your gross monthly pay is about $5,833.
- If you’re paid hourly and make $25/hour for 40 hours per week, your gross pay is $1,000 per week or about $52,000 per year.
Your gross pay is the foundation for all paycheck tax calculations.
Step 2: Subtract Pre-Tax Deductions
Before taxes are applied, many employers deduct pre-tax items that lower your taxable income.
Common examples include:
- 401(k) or 403(b) retirement contributions
- Health, dental, or vision insurance premiums
- Health Savings Account (HSA) or Flexible Spending Account (FSA) contributions
- Commuter benefits (for NYC residents)
Example:
If your gross monthly pay is $5,833 and you contribute $300 to a 401(k) and $150 to health insurance, your taxable income becomes:
$5,833 – $450 = $5,383
Step 3: Apply Federal Income Tax
Your federal tax depends on your filing status and income level. The IRS uses progressive tax brackets, meaning higher portions of your income are taxed at higher rates.
2025 Federal Income Tax Brackets (Single Filers)
| Tax Rate | Income Range |
|---|---|
| 10% | Up to $11,600 |
| 12% | $11,601 – $47,150 |
| 22% | $47,151 – $100,525 |
| 24% | $100,526 – $191,950 |
| 32% | $191,951 – $243,725 |
| 35% | $243,726 – $609,350 |
| 37% | Over $609,351 |
For Louisville earners, the Kentucky hourly calculator provides accurate numbers.
If your taxable annual income is $70,000, expect about $7,000–$8,000 in federal income tax, depending on your deductions and W-4 settings.
Step 4: Subtract FICA Taxes (Social Security & Medicare)
Every New York worker pays FICA taxes, which fund Social Security and Medicare.
| Tax Type | Rate | Notes |
|---|---|---|
| Social Security | 6.2% | Applies up to $168,600 in 2025 |
| Medicare | 1.45% | Applies to all income |
| Additional Medicare | 0.9% | For income above $200,000 (single) |
Example:
If you earn $70,000, your FICA tax would be:
- Social Security: $70,000 × 6.2% = $4,340
- Medicare: $70,000 × 1.45% = $1,015
Total FICA: $5,355 per year
Step 5: Apply New York State Income Tax
New York has a progressive state income tax that ranges from 4% to 10.9%, depending on income. Most middle-income earners pay between 5.5% and 6.33%.
2025 New York State Income Tax Rates (Single Filers)
| Taxable Income | Tax Rate |
|---|---|
| $0 – $8,500 | 4.0% |
| $8,501 – $11,700 | 4.5% |
| $11,701 – $13,900 | 5.25% |
| $13,901 – $21,400 | 5.85% |
| $21,401 – $80,650 | 6.33% |
| $80,651 – $215,400 | 6.85% |
| $215,401 – $1,077,550 | 9.65% |
| Over $1,077,550 | 10.9% |
Example:
If you make $70,000, your New York State tax would be around $4,000–$4,200 after deductions.
Contractors and freelancers can use the income estimator to see how much they’ll take home after self-employment taxes.
Step 6: Add Local (City) Income Tax if Applicable
If you live or work in New York City or Yonkers, you’ll also pay local income tax on top of state tax.
2025 NYC Local Tax Rates
| Taxable Income (Single Filer) | NYC Rate |
|---|---|
| Up to $12,000 | 3.078% |
| $12,001 – $25,000 | 3.762% |
| $25,001 – $50,000 | 3.819% |
| Over $50,000 | 3.876% |
Example:
If you earn $70,000 and live in NYC, your local tax is roughly:
$70,000 × 3.876% = $2,713 per year
Step 7: Subtract Post-Tax Deductions
After taxes, your employer may still withhold things like:
- Roth 401(k) contributions
- Union dues
- Wage garnishments
- Charitable deductions
These come out after taxes are applied.
Step 8: Calculate Your Net (Take-Home) Pay
Now, you can bring it all together.
Formula:
Net Pay = Gross Pay – (Federal + FICA + State + Local + Deductions)
Example: $70,000 Salary, NYC Resident, Single
| Category | Amount |
|---|---|
| Gross Pay | $70,000 |
| Federal Tax (est.) | – $7,800 |
| FICA | – $5,355 |
| NY State Tax | – $4,200 |
| NYC Local Tax | – $2,700 |
| Pre/Post Deductions | – $1,000 |
| Net Take-Home Pay | ≈ $48,945/year |
That’s around $4,078/month or $1,880 biweekly.
Step 9: Consider Pay Frequency
Your annual take-home stays the same, but your paycheck amount changes depending on how often you’re paid.
| Pay Schedule | Checks per Year | Example Take-Home ($70k) |
|---|---|---|
| Weekly | 52 | ≈ $941 |
| Biweekly | 26 | ≈ $1,880 |
| Monthly | 12 | ≈ $4,078 |
Knowing this helps you plan bills and savings.
Step 10: How to Maximize Your Take-Home Pay in New York
- Check your W-4 and IT-2104 forms: Update allowances if your family or job changes.
- Contribute to pre-tax accounts: 401(k), FSA, and commuter benefits reduce taxable income.
- Track local residency: You only pay NYC tax if you live there. Working there doesn’t always trigger it.
- Review your pay stub: Confirm all deductions match your elections.
- Use a calculator for estimates: The bi-weekly NYC calculator is ideal for employees on two-week pay cycles.
Frequently Asked Questions (FAQs)
1. What percentage of my paycheck goes to taxes in New York?
Most employees lose between 25%–35% of their paycheck to combined taxes (federal, state, FICA, and local).
2. Does everyone in New York pay local income tax?
No. Only residents of New York City and Yonkers pay local income tax.
3. How can I reduce taxes from my paycheck in New York?
Use pre-tax benefits, adjust withholding allowances, and contribute to retirement plans.
4. Are bonuses taxed differently in New York?
Yes. Bonuses are usually subject to a flat 22% federal rate, plus state and local taxes.
5. How do I calculate taxes if I work in NYC but live outside the city?
You pay state tax but not NYC local tax, unless you are an NYC resident.
Bettye is the creator of CityPaycheckCalculator.com, a resource designed to help individuals quickly and accurately estimate their take-home pay across U.S. cities. With a strong focus on clarity, accuracy, and user experience, Bettye provides reliable paycheck calculators and helpful insights to support smarter financial decisions. Her mission is to make complex payroll and tax information simple and accessible for everyone.