New York State Income Taxes: the Complete Guide for Expats

Many expats assume moving abroad means they don’t have any state tax obligations — unfortunately, it’s not always that simple. New York is one of several states that makes it difficult for former residents to sever tax ties. If you most recently lived in New York before moving overseas, you may need to file — and potentially pay — New York state income taxes.

Below, we’ll go over in detail who exactly is subject to taxation in New York, how the state taxes residents, how to potentially change your state residency, and more.

State tax liability for US expats

As you may already know, all Americans — both citizens and permanent residents — who earn above a certain threshold must file federal income taxes. This is true even if they live abroad. However, whether or not an expat needs to file state taxes depends on where they most recently lived, whether they have income in a given state, and state residency definitions.

In some cases, expats may even need to pay state and local taxes.

Understanding state residency requirements

Every state has slightly different tax residency definitions, but the majority won’t consider former residents who move abroad to be tax residents unless they maintain significant ties, like: 

• Maintaining a domicile (i.e. permanent home) there
• Having business or financial interests there (e.g. a business registered there)
• Spending more than half of the tax year there 
• Frequently returning for long stays
• Physically working there, or earning income sourced from there (e.g. income from a rental property located there)
• Having dependents or immediate family members living there

In such states, expats without major ties can end their tax obligations by filing a part-year tax return the year they move abroad. Even if they don’t require you to supply proof, however, you should keep it on hand in case the state tax authority reaches out. This might include a foreign residence card, a signed rental contract, or a tax return from your country of residence.

That said, you should do some research on the state you most recently lived in — and potentially contact a tax professional — to verify that you’re severing ties appropriately.

What is a sticky state?

Unfortunately, some states make it much more difficult for former residents to free themselves of their tax obligations. As you may have guessed, New York is one of these “sticky states” — along with California, New Mexico, South Carolina, and Virginia. Further, New York is particularly aggressive in auditing expats to ensure they aren’t maintaining tax residency.

New York state tax obligations for expats

New York’s Department of Taxation and Finance requires residents, part-year residents, and certain nonresidents with New York-sourced income to file state taxes.

Residents

Definition

New York defines residents as those who maintain: 

• A domicile (i.e. true, permanent home) in the state of New York, OR
• A permanent place of abode in the state of New York for all of the tax year and spend 184 days or more in the state during the tax year
  • Note: The state defines a “permanent place of abode” as a residence that you permanently maintain — whether you own it or not — that is suitable for year-round use. A spouse’s condo located in Utica, for example, would count as a permanent place of abode.

However, there are exceptions for two groups of people: Group A and Group B. Those who fall into either of these groups are not considered New York state tax residents.

Group A includes those who:

• Didn’t maintain a permanent place of abode in New York during the tax year, AND
• Maintained a permanent place of abode outside of New York for the entire tax year, AND
• Spent 30 days or less in the state of New York during the tax year

Group B includes those who: 

• Were in a foreign country for at least 450 days of any period of 548 consecutive days
• Had their spouse and minor children spend 90 days or less in the state of New York throughout this 548-day period
• Were present in the state of New York for no more days than the ratio of the number of nonresident days multiplied by 90 to 548

The formula mentioned in the last point can be expressed as such:

This might look a bit confusing, so let’s bring it to life with a concrete example.

Example: Sebastian meets the definition of New York state tax residency because he maintains a permanent home in New York. However, he has spent the last two years in the Netherlands for a temporary work assignment. In the last 548 days, he, his wife, and his eleven-year-old daughter have spent 527 days in the Netherlands and 21 days in New York.

Using the formula mentioned above, we’ll calculate the maximum number of days he can spend in New York without being a tax resident:

• The number of nonresident days (527) divided by 548 is .096167883
• .096167883 multiplied by 90 is about 87

We can see that the number of days he has spent in New York (21) is significantly less than the maximum amount he can spend there (87). As such, Sebastian qualifies as a nonresident under the Group B exception.

Filing requirements

Residents who meet any of the conditions below must file a New York state tax return:

• You have a federal return filing requirement
• You don’t have to file a federal return, but your federal adjusted gross income (AGI) plus New York additions exceeded $4,000 (or $3,100 if you are single and can be claimed as a dependent on another taxpayer’s federal return)
• You want to claim a refund on income tax withheld from your pay by the state of New York, New York City, or Yonkers
• You want to claim refundable or carryover credits

Nonresidents

Those who did not meet the New York tax resident definition at any point in the year qualify as nonresidents. Nonresidents must file if they meet any of the following criteria:

• You have New York-sourced income, and your New York AGI federal amount column (Form IT-203, line 31) exceeds your New York standard deduction ($3,100 to $16,050, depending on filing status)
• You want to claim a refund on income tax withheld from your pay by the state of New York, New York City, or Yonkers
• You want to claim refundable or carryover credits
• You had a net operating loss for New York State personal income tax purposes, but not for federal income tax purposes

Part-year residents

Those who met the New York tax resident definition for part of the year and the nonresident definition for the rest of the year qualify as part-year residents. Part-year residents must file if they meet any of the following criteria:

• You received any income during your resident period or you had New York-sourced income during your nonresident period and your New York AGI federal amount column (Form IT-203, line 31) exceeds your New York standard deduction (again, $3,100 to $16,050, depending on filing status)
• You want to claim a refund on income tax withheld from your pay by the state of New York, New York City, or Yonkers
• You want to claim refundable or carryover credits
• You are subject to a separate tax on lump-sum distributions derived from or connected with New York sources during your resident period
• You had a net operating loss for New York State personal income tax purposes, but not for federal income tax purposes

New York state income tax rates for 2024

For tax year 2023 — aka the taxes filed in calendar year 2024 — those who are subject to New York state income taxes will pay them at the following rates:

Tax rate	Income – Single filers/Married filing separately	Income – Married filing jointly/Qualifying widow(er)	Income – Head of household
4%	Up to $8,500	Up to $17,150	Up to $12,800
4.50%	$8,501 – $11,700	$17,151 –  $23,600	$12,801 – $17,650
5.25%	$11,701 – $13,900	$23,601 –  $27,900	$17,651 – $20,900
5.50%	$13,901 – $80,650	$27,901 – $161,550	$20,901 – $107,650
6%	$80,651 – $215,400	$161,551 – $323,200	$107,651 – $269,300
6.85%	$215,401 – $1,077,550	$323,201 – $2,155,350	$269,301 – $1,616,450
9.65%	$1,077,551 – $5,000,000	$2,155,351 – $5,000,000	$1,616,451 – $5,000,000
10.30%	$5,000,001 – $25,000,000	$5,000,001 – $25,000,000	$5,000,001 – $25,000,000
10.90%	$25,000,001+	$25,000,001+	$25,000,001+

Note that the tax rates above are marginal tax rates, which function differently than effective tax rates. With marginal tax rates, different tax rates apply to different income tax brackets. In other words, a 6% marginal tax rate doesn’t mean that the tax collected will be exactly 6% of your total income.

Additional taxes you may need to pay in New York include:

• Property taxes: Property tax rates in New York vary by location, but the average is 1.62%
• State sales tax: The New York state sales tax is 4% on most items, although local sales taxes may apply as well. New York City, for example, has sales tax rates of 4.5% to 10.375% depending on the category
• Estate tax: New York’s estate tax varies from 3.06% to 16%, depending on the value of the estate

New York income tax rates for the 2024 tax year (aka the taxes filed in 2025) are not yet available.

Filing procedures for expats from New York

The filing deadline for expats to file their New York state tax returns for tax year 2023 was June 17th, 2024. You must also pay any taxes due by this date to avoid penalties. Expats can request a filing extension until October 15th, but they must do so by the original due date.

New York has not yet made public the tax deadlines for the 2024 tax year (the taxes filed in 2025), but they will likely be similar.

Residents must generally file Form IT-201, while nonresidents and part-year residents will file Form IT-203. You can file online or through tax software, with some taxpayers qualifying for free e-filing services. Otherwise, you can have a tax professional file for you or complete the form, print it, and mail it.

If you will be including a payment (e.g. check or money order) with a physical copy of your tax return, you must mail it to:

STATE PROCESSING CENTER

PO BOX 15555

ALBANY NY 12212-5555

If you won’t be including a payment, you’ll mail your return to:

STATE PROCESSING CENTER

PO BOX 61000

ALBANY NY 12261-0001

Should you change your New York state residency?

If you’re a New York state resident, you may benefit from changing your residence to a state with lower taxes and fewer filing requirements. Some of the most popular options include Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.

However, changing state residence may not be the right option for everyone. For example, it may not make sense to do so if you plan on eventually moving back to New York. When in doubt, consult a tax professional who specializes in expat taxes.

Establishing residency in a more favorable state

In cases where changing state residence is beneficial, you’ll generally need to sever your existing ties to New York. A few ways you might do so include:

• Selling any New York-based real estate or property you own
• Closing financial accounts based there
• Changing the registration of any New York-based businesses
• Limiting the amount of time you and your family spend there
• Not working from there

Then, you’ll need to establish ties to your desired state. You might do this by:

• Buying or renting real estate there
• Registering your vehicle there
• Moving your belongings there
• Applying for a driver’s license or official ID there
• Registering your business there
• Spending more time there
• Opening financial accounts there
• Filing a change-of-address form

Whichever changes you make, be sure to document them in case of an audit. Tax preparers or lawyers may suggest different or additional measures based on your specific case.

Resources:

1. Income tax definitions
2. Filing information for New York State residents
3. Filing information for New York State nonresidents
4. Filing Information for New York State part-year residents
5. New York Property Tax Calculator
6. New York State sales and use tax
7. Estate of Affairs: A Handy and Essential Guide to New York Estate Tax
8. Special filing deadlines
9. State Individual Income Tax Rates and Brackets, 2024
10. New York City, NYC Tax Rates–Blended NYC Tax Rates