New York Updates State, Yonkers Withholding Methods

Withholding methods for New York state and Yonkers were updated for 2026 after legislative changes made to the income tax rates in 2025, the state’s Department of Taxation and Finance said.

Tax rates used in New York state’s withholding methods range from 3.9% to 11.7%, down from 4% to 11.7%. The supplemental withholding rate was unchanged at 11.7%, while other parts of the exact calculation method, including the deduction allowance values and state allowance value of $1,000 annually, were unchanged.

Similar tax rate changes were made in Yonkers’s withholding methods for residents. However, the earnings tax rate for Yonkers nonresidents ...