New York City imposes a personal income tax on individuals living in the city. In most cases, if you work in New York City but live outside the city, you will not have to pay this tax. The tax is a graduated tax based on your total income. You can manually calculate your New York City tax liability using the city's tax rate schedule.
1. Determine your gross income. You can find this information on your W-2 form sent to you annually by your employer. For example, assume your gross income for the tax year was $50,000.
2. Determine your New York City tax rate from the New York City tax rate schedule. New York City uses different income levels to assess taxes based on your filing status. Use the appropriate portion of the schedule based on your filing status as a single taxpayer, married taxpayer or head of household. For example, assume you are a single taxpayer. Continuing the same example, from the New York City tax rate schedule, your tax is $1,455 plus 3.591 percent of your income above $45,000.
3. Multiply the assessed tax rate by the amount of your income that exceeds the tax threshold listed on the schedule. Continuing the same example, .03591 x $5,000 = $179.55.
4. Add your tax liability that is above the listed threshold to the tax listed on the schedule. Continuing with the same example, $1,455 + $179.55 = $1,634.55. This figure represents the New York City tax liability.
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