In New York, local income tax is mostly about where you live.

Residency and day counts

If you are a New York City resident for all or part of the year, check the NYC resident tax on the New York return. If you are a Yonkers resident, check the Yonkers resident surcharge. If you live outside those places, NYC resident tax is not triggered just because your office is in the city. Yonkers is trickier: nonresidents with Yonkers wages or self-employment income may still have a Yonkers filing item.

Domicile is the one permanent and primary home you intend to return to or remain in after being away. A permanent place of abode is a dwelling you maintain that is suitable for year-round use; you do not have to own it. Even when domiciled elsewhere, a person can be a New York statutory resident by maintaining a permanent place of abode in the state for substantially all of the tax year and spending 184 days or more in New York. The common "183-day rule" shorthand means more than 183 days, and any part of a day usually counts. New York City uses the same general domicile, permanent-place-of-abode, and day-count framework for city residency.

Nonresident telework

A nonresident does not owe NYC resident income tax, but may owe New York State tax on New York-source wages. If the employee's assigned or primary office is in New York, normal days worked from a home outside the state are generally treated as New York workdays unless the employer established a bona fide employer office at that telework location. The employee's home address by itself does not settle the sourcing question.

MCTMT for self-employed people in 2026

MCTMT is separate from NYC and Yonkers resident tax. For tax years beginning on or after January 1, 2026, a self-employed person, including an individual partner, crosses the threshold when net earnings attributable to Zone 1 or Zone 2 exceed $150,000 in that zone. The threshold is computed for each person and each zone, even on a joint return. Zone 1 is the five New York City counties; Zone 2 is Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, and Westchester.

The 2026 rate is 0.60% for Zone 1 and 0.34% for Zone 2. A self-employed individual reports the tax on the New York personal income tax return, using Form IT-201 or IT-203 as applicable; estimated payments may also be required.