New York Bonus Tax Rate 2026: NYS 11.70% and NYC 4.25% Withholding Explained

New York withholds 11.70% of a bonus for state income tax in 2026, and New York City residents have another 4.25% withheld for city tax, on top of a flat 22% federal rate, Social Security, Medicare and Paid Family Leave. That's why a bonus in New York City can arrive about 46% lighter than its headline amount. This article breaks down every line, compares the two federal methods, works through a real example and shows how much of the withholding you're likely to get back. Figures come from our bonus tax calculator and New York paycheck calculator, using the 2026 rates published by the IRS and the New York State Department of Taxation and Finance.

Quick answer

A bonus paid in New York City has five things withheld in 2026: 22% federal income tax (the flat method), 6.2% Social Security, 1.45% Medicare, 11.70% New York State tax and 4.25% New York City tax, plus 0.432% Paid Family Leave until its yearly cap. On a $10,000 bonus that's $4,603.20, leaving $5,396.80. Outside New York City, without the 4.25%, you keep $5,821.80.

What's withheld from a New York bonus

Single employee earning $90,000 a year, paid every two weeks, with $45,000 already paid this year, receiving a $10,000 bonus with the flat federal method:

New York disability insurance is also an employee deduction, but it's capped at $0.60 a week, which regular paychecks usually cover, so nothing extra comes out of a bonus.

Step-by-step: how the $10,000 is calculated

Payroll works through the bonus in this order. The New York City column above follows the same steps.

Because every rate is flat, the withholding is 46.03% of the bonus whatever its size, until one of the yearly limits kicks in: Social Security stops at $184,500 of wages, Paid Family Leave stops once $411.91 has been deducted in the year, extra Medicare starts above $200,000, and supplemental pay above $1 million is withheld at 37% federal.

Percentage method vs aggregate method

Employers choose how to withhold federal tax on a bonus. The percentage method (flat 22%) is the most common for bonuses paid separately. The aggregate method adds the bonus to a regular paycheck and withholds as if you earned that combined amount every pay period, which usually takes more.

Same New York City employee, $10,000 bonus:

New York State allows the same choice for state tax: the flat supplemental rates, or adding the bonus to the regular wages for the period and withholding on the total. Our calculator uses the flat state and city rates. Whichever method is used, the extra federal withholding isn't extra tax: anything above what you owe comes back when you file. See why is my bonus taxed so high? for how the aggregate method works.

Real-life scenario: a year-end bonus in Brooklyn

A single software tester living in Brooklyn earns $90,000 a year, paid every two weeks, and is told in December that the year-end bonus is $10,000. The employer pays it as a separate payment and uses the flat federal method.

• The bonus is paid separately, so the flat rates apply: 22% federal, 11.70% state and 4.25% city.
• Year-to-date wages are well below $184,500, so Social Security is withheld in full.
• Paid Family Leave deducted so far this year is under the $411.91 cap, so 0.432% is taken from the bonus.
• The deposit is $5,396.80.

If the employer had used the aggregate method instead, the deposit would be $4,725.10, $671.70 less, but that difference comes back at tax time.

How much is the bonus really costing in tax? When the tester files, the $10,000 is simply added to salary and taxed at normal rates:

The bonus falls in the 22% federal bracket, so federal withholding is exact. But New York State's 11.70% is higher than even its top rate of 10.9%, while this salary's bonus is taxed at 5.9%, so $580 of state withholding comes back as a refund. City withholding at 4.25% is slightly above the top city rate of 3.876%, so another $37 comes back.

We kept this example's total income under $107,650 because, above that, New York gradually withdraws the benefit of its lower brackets, which our paycheck calculator doesn't yet model. For higher salaries, the refund on state tax will be smaller.

Bonus take-home at different amounts (New York City)

Same employee, flat federal method:

For a higher earner who has already paid the full $411.91 of Paid Family Leave, nothing more is deducted for it. For example, with $120,000 already paid in the year, a $10,000 bonus has $4,560 withheld in New York City, not $4,603.20.

Who pays New York City tax, and Yonkers

New York City income tax applies to residents of the five boroughs. If you commute into the city from New Jersey, Connecticut, Long Island or Westchester, no city tax is withheld from your bonus, though New York State tax is, because you work in the state.

Yonkers residents have a separate local tax withheld. Our calculator doesn't include it, so add it with your employer's figures if you live in Yonkers.

How to keep more of a New York bonus

• Defer part of it into your 401(k) if your plan allows deferrals from bonuses. Pre-tax contributions lower federal, New York State and New York City income tax. See how much a 401(k) reduces your paycheck.
• Check your W-4 and New York IT-2104. If bonuses regularly leave you with a large refund, adjusting your withholding certificates spreads the tax more evenly through the year.
• Ask about timing. A bonus paid in January instead of December counts in the next tax year, which helps if your income will be lower then.
• Compare offers properly. Moving between New York City and a no-income-tax state changes the value of a bonus as much as the salary. See comparing job offers in two states.

Sources

• New York State: withholding tax tables and methods, NYS-50-T-NYS (1/26)
• New York City: withholding tax tables and methods, NYS-50-T-NYC (1/26)
• New York Paid Family Leave: 2026 contribution
• IRS Publication 15: supplemental wages