New York City and Yonkers payroll taxes

NYC follows residence; Yonkers taxes both sides

The two cities work differently, and that drives who you withhold from.

One gap in what we could confirm: the NYC publication labels its tables for residents, but we did not find an explicit sentence excluding nonresidents. For a New Jersey or Long Island commuter to Manhattan, the resident-only tables point to no NYC withholding; confirm with the Department of Taxation if you have doubts.

The rates and rules

A $60,000 employee and a $5,000 bonus

Regular-wage NYC withholding comes from the bracket tables and depends on allowances, so we do not reduce it to one number. Bonuses are where a flat rate applies. If you pay a $5,000 bonus separately and use the supplemental method:

• New York State: $5,000 x 11.70% = $585.00
• New York City resident: $5,000 x 4.25% = $212.50
• Yonkers resident: $5,000 x 1.95975% = $97.99

The Yonkers supplemental figure is not arbitrary. It is the 16.75% surcharge applied to the 11.70% state rate: 11.70% x 16.75% = 1.95975%. The same logic runs through regular pay: for every $100 of state tax you withhold from a Yonkers resident, add $16.75.

A nonresident earning $60,000 for work in Yonkers owes $60,000 x 0.50% = $300.00 a year in earnings tax. On top of the city taxes, New York employees also pay Paid Family Leave at 0.432% ($259.20 on $60,000, under the $411.91 cap) and disability benefits of 0.5% up to $0.60 a week, which caps at $31.20 a year. Your side of the bill, including the 4.1% new employer unemployment rate on $17,600, is on the New York payroll tax page.

Filing rides on state withholding

We found no separate city withholding account. NYC and Yonkers taxes are withheld with, and reported with, your New York State withholding through the Department of Taxation and Finance. We did not read the NYS-1 and NYS-45 instructions for this page, so check deposit timing in those instructions. The practical consequence: an error in city withholding shows up as an error on your state return.

Where NYC and Yonkers withholding breaks

• Moves in and out of the city. NYC withholding follows residence. When an employee moves from Brooklyn to Westchester, NYC withholding should stop from the move date, and a move into Yonkers starts the surcharge.
• Old Yonkers tables. The state and Yonkers tables changed January 1, 2026; NYC's did not. Software that updated one and not the other gets Yonkers wrong.
• Remote Yonkers nonresidents. The 0.50% applies to earnings for work in Yonkers. An employee who moves to full-time remote work outside the city changes the picture; document the work location.
• Using the state supplemental rate for city tax. NYC's supplemental rate is 4.25%, not 11.70%.
• Missing the employee deductions. PFL and disability are state items but are easy to miss when you set up city tax.

Payroll software for New York

Because NYC and Yonkers taxes flow through state returns, start with a provider that files New York State withholding and lists NYC and Yonkers by name. Then check that the employee's residence field drives the city taxes, and that PFL and disability are set up. OnPay's pricing page says federal, state and local filings are included at $49 a month plus $6 per worker (checked October 16, 2026). For a wider comparison see payroll software rankings, how payroll taxes work and SUTA rates by state. Other cities that tax wages: Philadelphia's Wage Tax and Kansas City and St. Louis earnings taxes.