TAXES 18-08, New York City, New York Income Tax Withholding

TAXES 18-08, New York City, New York Income Tax Withholding

Published: January 16, 2018
Effective: Pay Period 01, 2018

Summary

The resident Single or Head of Household and Married income tax withholdings for New York City, New York have changed as a result of changes to the formula for tax year 2018. No action on the part of the employee or the personnel office is necessary.

Tax Formula

State Abbreviation:

NY

State Tax Withholding State/City Code:

36/4170

Acceptable Exemption Form:

IT-2104

Basis for Withholding:

State Exemptions

Acceptable Exemption Data:

S/H/M, Number of Exemptions

TSP Deferred:

Yes

Special Coding:

None

Additional Information:

None

Withholding Formula (Effective Pay Period 01, 2018)

  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program, and flexible spending account - health care and dependent care deductions) from the amount computed in step 1.
  3. Add the taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the annual wages.
  5. Determine the standard deduction allowance by applying the following guideline and subtract this amount from the annual wages:

    Single/Head of Household

    Married

    $5,000

    $5,500

     

  6. Determine the exemption allowance by applying the following guideline and subtract this amount from the result of step 5 to obtain the taxable income:

    Exemption Allowance = $1,000 x Number of Exemptions

     

  7. Apply the taxable income computed in step 6 to the following table(s) to determine the annual New York City tax withholding:

    Single or Head of Household Tax Withholding Table

    If the Amount of Taxable Income Is:

    The Amount of Tax Withholding Should Be:

    Over $0 but not over $8,000

    2.05%

    Over $8,000 but not over $8,700

    $164.00 plus 2.80% of excess over $8,000

    Over $8,700 but not over $15,000

    $184.00 plus 3.25% of excess over $8,700

    Over $15,000 but not over $25,000

    $388.00 plus 3.95% of excess over $15,000

    Over $25,000 but not over $60,000

    $783.00 plus 4.15% of excess over $25,000

    Over $60,000

    $2,236.00 plus 4.25% of excess over $60,000

     

    Married Tax Withholding Table

    If the Amount of Taxable Income Is:

    The Amount of Tax Withholding Should Be:

    Over $0 but not over $8,000

    2.05%

    Over $8,000 but not over $8,700

    $164.00 plus 2.80% of excess over $8,000

    Over $8,700 but not over $15,000

    $184.00 plus 3.25% of excess over $8,700

    Over $15,000 but not over $25,000

    $388.00 plus 3.95% of excess over $15,000

    Over $25,000 but not over $60,000

    $783.00 plus 4.15% of excess over $25,000

    Over $60,000

    $2,236.00 plus 4.25% of excess over $60,000

     

  8. Divide the annual New York city income tax withholding calculated in step 7 by the number of pay dates in the tax year to obtain the biweekly New York City tax withholding.

New York City Nonresident Income Tax Withholding Formula

Effective January 1, 2000, New York City nonresidents are exempt from the city's income tax, and wages earned as a nonresident have been nontaxable. New York City taxable wages for these employees should be zero.

The withholding tax on New York City nonresidents has been eliminated.

Resources

To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) homepage. Select the Publications tab and select U.S. Income Tax Formulas from the Publications menu to launch the tax map. Select the desired State from the map provided for the formula.

Previous Tax Bulletin

Inquiries

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