New York State Income Taxes: the Complete Guide for Expats

Many expats assume moving abroad means they don’t have to file state taxes. Unfortunately, it’s not always that simple. New York is one of several states that make it difficult for former residents to sever tax obligations. If you lived in New York before moving overseas — or you maintain certain ties there — 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

All American citizens and permanent residents who earn above a certain threshold must file federal income taxes — even if they live abroad. Whether or not expats need to file state taxes usually depends on where they most recently lived, which financial and social ties they maintain to a given state, and state residency definitions.

In rare 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, such as: 

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

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 states don’t require you to supply proof of your move, 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 in your country of residence
• A foreign tax return

That said, each state has slightly different tax residence rules, so it’s worth researching the laws of the state or states most relevant to you. You may also want to consider contacting a tax professional to help you sever 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. What’s more, New York is particularly aggressive in auditing expats to ensure they aren’t evading their state tax obligations.

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.

New York state tax residency definition

New York defines residents as those who: 

• Are domiciled in New York (i.e. own a true, permanent home there), OR
• Have 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

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 residents for state tax purposes.

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 overlapping the tax year, AND
• Had their spouse and minor children spend 90 days or less in the state of New York throughout this 548-day period, AND
• 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

This last point reads 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.

New York filing requirements for residents

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

Filing requirements for nonresidents in New York

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 for tax year 2024, 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 in New York: Filing requirements

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)
• 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 2024-2025

So how much are New York state income taxes?

If your income is $65,000 or less, you can use the simplified 2024 New York State Tax Tables to calculate your New York state income tax liability. Otherwise, you will pay taxes at the following rates:

Income – Single filers/Married filing separately	Income – Married filing jointly/Qualifying widow(er)	Income – Head of household	Tax rate
Up to $8,500	Up to $17,150	Up to $12,800	4%
$8,501 – $11,700	$17,151 – $23,600	$12,801 – $17,650	4.5%
$11,701 – $13,900	$23,601 – $27,900	$17,651 – $20,900	5.25%
$13,901 – $80,650	$27,901 – $161,550	$20,901 – $107,650	5.5%
$80,651 – $215,400	$161,551 – $323,200	$107,651 – $269,300	6%
$215,401 – $1,077,550	$323,201 – $2,155,350	$269,301 – $1,616,450	6.85%
$1,077,551 – $5,000,000	$2,155,351 – $5,000,000	$1,616,451 – $5,000,000	9.65%
$5,000,001 – $25,000,000	$5,000,001 – $25,000,000	$5,000,001 – $25,000,000	10.3%
$25,000,001+	$25,000,001+	$25,000,001+	10.9%

Source: Nerdwallet

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. 

Let’s say, for example, that you’re a single filer who had an income of $100,000 in 2024. While your top marginal state tax rate will be 6%, you don’t have to pay 6% of your income in state taxes.

Rather, you will pay:

• A 4% tax on the portion of your income up to $8,500
• A 4.5% tax on the portion of your income between $8,501 and $11,700
• A 5.25% tax on the portion of your income between $11,701 and $13,900
• A 5.5% tax on the portion of your income between $13,901 and $80,650
• A 6% tax on the portion of your income between $80,651 and $100,000

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 tax deductions, credits, & exemptions

You may be able to reduce your New York state income tax liability through state-specific tax breaks. A few of the most popular options include:

• Standard deduction: From $3,100 to $16,050, depending on filing status and circumstances
• Itemized deductions: Generally, most itemized deductions you can claim on your federal tax return can be claimed on your New York state income taxes as well
• Empire State child credit: Up to 33% of the federal Child Tax Credit or $100 per qualifying child (whichever is greater)
• College tuition credit: Up to $400 when paying for yourself, a spouse, or a dependent to attend a New York state college or institution of higher learning

Long-term care insurance credit: Up to $1,500 for individuals or up to 20% of premiums for businesses paying long-term care insurance

Income tax filing procedures for expats from New York

Those who must file New York state tax returns for tax year 2024 do so in calendar year 2025. For expats, the New York state income tax deadline for the 2024 tax year is June 16th, 2025. If you need more time, you can request an extension before the deadline, which will modify your due date to October 15th, 2025. 

However, you must still make an estimated tax payment by the original due date to avoid late penalties and interest.

New York state-specific tax forms

The exact form you must file for your New York state income tax return depends on your filing status:

• Residents: Form IT-201
• Nonresidents & part-year residents: Form IT-203
• Memberships of a partnership: Form IT-204
  • Note: Partnerships with nonresident partners may file a single group return for the entire partnership with Form IT-203-GR

Filing New York state tax forms, step by step

Regardless of which form you fill out, you will need to:

• Enter your basic information (e.g. full legal name, address, Social Security Number/SSN, filing status)
• State how much time you spent in vs. outside of New York
• List your dependents’ names, birth dates, and SSNs, as well as describe your relationship to them (e.g. child, spouse, parent, etc.)
• Report your income across different categories (e.g. wages/salary, taxable interest, ordinary dividends, rental income, capital gains or losses, etc.)
• Factor in state-specific income additions (e.g. interest on local bonds, distributions from New York’s 529 college savings program distributions, public employee 414[h] retirement contributions)
• Factor in state-specific subtractions (e.g. state and local tax breaks, government pension contributions)
• Indicate which state-specific and local tax credits, deductions, and exclusions you want to claim and calculate their value
• Calculate the amount you owe or the amount you are refunded
• Sign your tax return

There are a few different ways to file your New York state income tax return:

• Hiring a tax professional to file on your behalf
• Filing through tax software
  • Note: Some tax software programs don’t facilitate expat returns in certain circumstances, such as if they’re married to a non-US national and filing separately from them
• Filing online for free, if you qualify
• Completing the form, printing, and mailing it

If you will be including a payment (e.g. check or money order) along with the printed 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. There are nine states with no state income taxes:

• Alaska
• Florida
• Nevada
• New Hampshire
  • Note: While New Hampshire taxed dividends and interest for many years, that tax has been repealed as of the 2025 tax year — aka the taxes you file in 2026
• South Dakota
• Texas
• Washington
  • Note: Washington does levy a state tax on capital gains
• 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.

How to establish 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 in New York
• Changing the registration of any New York-based businesses
• Limiting the amount of time you and your family spend in New York
• Working from outside the state

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

• Buying or renting real estate
• Registering your vehicle
• Moving your belongings
• Applying for a driver’s license or official ID in the state
• Registering your business
• Registering to vote
• Spending more time in the state
• Opening financial accounts
• 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.

Frequently Asked Questions