Tax Attorneys in New York

New York has a progressive state income tax ranging from 4% to 10.9%, with additional local income taxes in New York City and Yonkers. The state sales tax is 4%, but localities can increase it up to 8.875% in NYC. Property taxes vary by county, and homeowners may qualify for exemptions like STAR. The New York State Department of Taxation and Finance handles the collection of state taxes, administers tax laws and ensures compliance.

Businesses pay corporate franchise taxes based on income or capital. Estate tax applies to estates exceeding $6.94 million. While taxes are high, New York offers deductions, exemptions, and credits to offset liabilities.

In New York, income is taxed progressively, with rates ranging from 4% to 10.9% based on income brackets. New York City and Yonkers impose additional local income taxes, adding up to 3.876% in NYC. For a breakdown of the state’s personal income tax rate, kindly click here.

New York has a graduated corporate income tax, with rates ranging from 6.5% to 7.25%. Retirement income, including pensions and 401(k)s, 403(b)s and IRAs are combined and generally taxed as regular income to the same extent they’re taxed at the federal level.

But federal and New York state government pensions and military retirement pay are tax-exempt. Social Security benefits is tax exempt but you may pay federal taxes on a portion of your Social Security benefits, depending on your “provisional income.”. Interest, dividends, and capital gains are taxed at regular state income tax rates. While there is no inheritance tax in New York, estates are taxed at rates ranging from 3.06% to 16% after the current exemption of $7,160,000.

Deductions, exemptions, and credits can help reduce the overall tax burden, but the state remains one of the highest in terms of tax rates.

In New York, several types of income are not taxed:

• Social Security benefits are exempt from state income tax.
• Retirement Income Tax Exemption for Seniors: For those 59½ or older, the first $20,000 of retirement income (from a corporate pension, an IRA, a 401(k) account or another retirement plan) is tax-exempt.
• Military retirement pay is partially or fully exempt.
• Interest from New York municipal bonds is not taxed by the state.

While New York taxes a broad range of income, these exemptions help reduce the tax burden for eligible individuals.

Yes, New York offers several tax exemptions, including:

• Social Security benefits are exempt from state income tax.
• Retirement income up to $20,000 for those 59½ or older is tax-exempt.
• Sales Tax Exemption: Sales of some services, certain food and drinks, drugs, medicines and more, are generally exempt from New York sales tax.
• Property Tax Exemption: Some properties, such as those owned by religious organizations or governments are completely exempt from paying property taxes. Others are partially exempt, such as veterans who qualify for an exemption on part of their homes, and homeowners who are eligible for the School Tax Relief (STAR) program.
• Military Benefits: New York does not tax military pensions.
• Interest on New York municipal bonds is exempt from state taxes.
• Certain pension income may be excluded based on income levels.
• Capital gains from certain retirement accounts may be exempt.

These exemptions aim to reduce tax burdens for eligible residents, particularly seniors and those with qualifying retirement income.

1. State Income Tax: New York’s income tax rates range from 4% to 10.9%, depending on income brackets. You can file your state income tax using:
   • New York State Department of Taxation and Finance Online Services: A free online portal for eligible taxpayers to file their state returns.
   • Free File Alliance: Partnerships with tax software companies provide free e-filing options for qualifying taxpayers.
   • Approved E-File Providers: A list of authorized e-file providers is available on the New York State Department of Taxation and Finance website.
2. Federal Income Tax Filing: You can file federal income tax in New York using –
   • IRS Direct File: As of the 2025 tax season, eligible New York residents can use the IRS Direct File service to prepare and file their federal tax returns online directly with the IRS for free
   • Use IRS Form 1040 for personal federal taxes.
   • File online through the IRS Free File, tax software, or with a tax professional.
3. Property Tax: Assessed and collected at the local level, with rates varying by county and municipality.

New York tax lawyer costs depend on the nature of your tax case such as: state audits, IRS litigation, or corporate tax structuring. Fees may range from hourly rates to contingency-based billing.

At Taxlawyer.com, we help New Yorkers find reputable New York tax attorneys offering strategic legal counsel without unnecessary expenses.

New York’s complex tax regulations ranging from state audits to international tax compliance demand an experienced New York tax lawyer. Follow these steps to efficiently hire a tax lawyer in New York:

• Identify your tax matter:  IRS audits, business tax disputes, foreign asset disclosures, or criminal tax defense.
• Research attorney credentials: Ensure experience in federal and state tax litigation.
• Book a case review: Discuss possible tax strategies and legal remedies.
• Understand the fee structure: Compare hourly rates, retainers, and flat-fee services.

At TaxLawyer.com, we connect New Yorkers with top-rated New York tax attorneys for expert legal assistance.

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• New Jersey

New York state has a complex tax system, which includes:

• Progressive income tax rates ranging from 4% to 10.9%.
• Corporate Income tax is graduated, with rates ranging from 6.5% to 7.25%
• Sales tax of 4%, with local additions up to 8.875% in NYC. However, state doesn’t tax most groceries, clothing valued under $110, prescription or nonprescription drugs, medical equipment and certain medical care services.
• Retirement Income: Money withdrawn from pensions and 401(k)s, 403(b)s and IRAs are combined and generally taxed as regular income. But federal and New York state government pensions and military retirement pay are tax-exempt.
• Investment Income: Capital gains from investments (including proceeds from property sales) are treated as ordinary personal income and are taxed at the same rates.
• Property Tax: Property tax is taxed locally. However, New York has a 1.54% effective property tax rate on owner-occupied housing value.
• Estate tax for estates over $6.94 million.
• Gas & Tobacco Tax: New York has a 25.68 cents per gallon gas tax rate and a $5.35 cigarette excise tax rate.
• Commuter tax: A tax is levied on certain employers and self-employed people conducting business in the New York City metro area.f 
• Tax exemptions for retirement income and municipal bond interest.

New York state’s tax laws are designed to support both residents and businesses, with some specific exemptions and deductions available.