Income tax in the United States – federal, New York State and New York City

For tax purposes, a non-citizen is a nonresident alien unless they meet one of two tests for the calendar year:

• the green card test: you are a lawful permanent resident; or
• the substantial presence test: you were in the US for at least 31 days this year and 183 days over three years, counting all days this year, one-third of the days last year and one-sixth of the days the year before.

Days do not count while you are an "exempt individual", for example an F, J, M or Q student or a J or Q teacher or trainee who substantially complies with the visa terms.

Resident aliens are generally taxed like US citizens, on their worldwide income, and file Form 1040. Nonresident aliens pay tax at the regular graduated rates on income connected with US work or business and a flat 30% (or a lower treaty rate) on certain other US-source income, and file Form 1040-NR. In the year you arrive you are often both (a dual-status year) and file a dual-status return. Tax treaties and special elections can change the result.

The standard deduction for 2026 is $16,100 for single filers and $32,200 for married couples filing jointly. Taxable income above that is taxed in brackets. For single filers in 2026:

• 10% up to $12,400
• 12% over $12,400
• 22% over $50,400
• 24% over $105,700
• 32% over $201,775
• 35% over $256,225
• 37% over $640,600

Joint filers have wider brackets (10% up to $24,800). These figures apply to returns filed in 2027.

Employees pay 6.2% Social Security tax on wages up to $184,500 (2026) and 1.45% Medicare tax on all wages, plus an extra 0.9% Medicare tax on wages above $200,000. Your employer pays a matching share. Nonresident aliens in F-1, J-1, M-1 or Q-1 status are generally exempt on wages from work allowed by their status, but this exemption ends once they become resident aliens for tax purposes.

New York State taxes residents with progressive rates. For single filers in 2026, the rates start at 3.9% on the first $8,500 of taxable income, reach 5.4% from $13,900 to $80,650, 5.9% to $215,400 and 6.85% to $1,077,550, and rise to 9.65%, 10.3% and 10.9% on very high incomes.

New York City residents pay city income tax on top, reported on the state resident return (Form IT-201). For single filers the 2026 city rates are 3.078% up to $12,000, 3.762% to $25,000, 3.819% to $50,000 and 3.876% above.

If you move into New York during the year, you are a part-year resident and file Form IT-203; if you move into or out of the city during the year, you also complete Form IT-360.1.

Give your employer Form W-4 (federal) and Form IT-2104 (New York State and City). If you owed tax or got a large refund last year, or your situation changes, update them. Check the first pay statement: it should show federal, state and city tax, Social Security, Medicare and, in New York, a small contribution for Paid Family Leave (0.432% of gross wages in 2026, up to $411.91 a year).

• Federal and New York returns are due by 15 April of the following year (for 2025 returns, 15 April 2026). You can get an automatic federal extension to 15 October with Form 4868, and New York accepts extension requests filed by 15 April, but an extension gives more time to file, not to pay.
• Resident aliens file Form 1040; nonresident aliens file Form 1040-NR. New York full-year residents file IT-201; part-year residents and nonresidents with New York income file IT-203.
• People who must file but cannot get an SSN, such as some spouses and dependents, apply for an ITIN with Form W-7, attached to the tax return.
• The Child Tax Credit (up to $2,200 per qualifying child for 2025) requires a Social Security number valid for employment for the child and for the taxpayer.

US persons, including resident aliens, must file an FBAR (FinCEN Form 114) if the combined value of their foreign financial accounts exceeded $10,000 at any time in the calendar year. It is filed electronically with FinCEN, not with the tax return, and is due on 15 April with an automatic extension to 15 October.

Sales tax is added to the price of most goods and many services. In New York City the combined rate is 8.875% (4% state, 4.5% city and 0.375% for the Metropolitan Commuter Transportation District). Clothing and footwear priced under $110 per item are exempt in New York City.

• IRS Free File: guided software for an adjusted gross income of $89,000 or less, or fillable forms for anyone, starting from IRS.gov.
• NYC Free Tax Prep: free tax preparation for households earning $97,000 or less with dependents or $68,000 or less without (2025 tax year). Find a site on the City's tax map or call 311.
• For complex situations (dual-status years, treaties, foreign income), consider a qualified tax professional.