An Overview Of New York State Taxation And Finance: What Every Resident Needs To Know

What is New York State Taxation and Finance?

The New York state taxation and finance department was officially created on January 1, 1927, with the role of finding a mathematical formula for the distribution of tax revenue among the different counties within New York State. The department is currently in charge of controlling New York taxation and revenue; this also covers every sort of tax publication and form, distributing tax revenue to counties and organizations in the state.

NYSDTF is responsible for the administration of about 40 state and local taxes and fees, and also local sales tax worth $18 billion and local income tax worth $8 billion. The department also monitors the administration of more than $50 billion in real property taxes every year and works hand in hand with nearly 1,000 local governments. Data about the taxes administered can be explored, searched for, downloaded, and shared here.

new york state taxation and finance26 Million Returns Are Processed Annually.

  • Income: 49%
  • withholding: 34%
  • Sales: 7%
  • Corp: 6%
  • Other: 3%
  • MCTMT: 1%

new york state taxation and finance

Your Tax Dollars at Work

  • Education: 31%
  • Health: 28%
  • Higher Education: 10%
  • Transportation: 5%
  • Criminal Justice: 4%
  • Social theylfare: 3%
  • Other: 19%
  • Agency Budget: 0.35%

Average annual tax revenue collected by New York State: $120B

new york state taxation and finance

Income Tax Refunds Issued for the 2019 Tax Year

  • Number of refunds: $7.6 Million
  • Dollar Amount: $9.5 Billion

Total Taxes Paid -2019-2020 Fiscal Year

    • Personal Income: $53.6 Billion
    • $17 billion in sales, excise, and use tax revenue.
    • $7.7 billion for corporations and businesses.
    • Other State Taxes: $2.4 Billion

  • Local Sales and Use: $18.4 Billion
  • NYC Income Tax: $14 Billion
  • Other Local Taxes: $6 Billion

Other Responsibilities:

The department is also in charge of managing the state’s treasury. The Division of the Treasury receives and redistributes state funds as they will act as a caretaker of special funds. The division also serves as the State Comptroller’s joint guardian of state security.

The department collects extra revenue on behalf of individuals and the government through agreements with other government agencies, as well as assists with fraud prevention and detection. Collecting delinquent child support payments and detecting fraud in public assistance and unemployment insurance benefits are two examples of joint measures.

New York State (NYS) Tax

What is the NY State Tax? 

A state income tax is a tax imposed by a state on your earnings or income over the course of a tax year. State income taxes, which differ by state, are payments to the state government based on a percentage of your income.

State income taxes are self-assessed, similar to federal income taxes. Some states, for example, have a flat tax rate or even no tax at all. New York State (NYS or NYS) levies an income tax at the state level.

Who Pays NY State Tax? 

States, just like the federal government, levy income taxes on your earnings if you have a sufficient connection to the state or if you earn money in the state, even if you don’t have a sufficient connection.

So, if you earn an income or live in NY, you must pay NY state tax. Your NYS taxes will be deducted automatically from each paycheck if you are a traditional W-2 employee. You will see this on your paycheck, near or next to the federal taxes.

If you work remotely or earn money in New York, you must pay taxes to the state where you do your work. Even if the employer has no physical presence in the state, employers will usually pay taxes on wages paid to these workers to that state. However, some states may require that workers be taxed based on their employer’s location.

How Do You Pay NYS Tax?

Get information on how to pay New York State taxes here.

How Much Should I Pay in NY State Tax?

Depending on your income, the state income tax rate in New York ranges from 4% to 8.82%. Learn more about the tax rates in New York State here.

When Are NYS Tax Returns Due? 

Check the deadlines for your new New York State tax returns.

How Do You Check If You Paid NYS Income Tax? 

If you want to double-check that your New York State income taxes were paid, contact the New York State Taxation and Finance department. Visit the Department of  Revenue’s website for more information.

new york state taxation and finance

Why would I get a letter from the New York State Department of Taxation and Finance?

If you get a letter from the New York State Department of Taxation and Finance, requesting any form of documentation to back up what you claimed on your returns, that does not necessarily mean that you have defaulted in any way or did anything wrong.

It is just an additional verification step to check refunds -verify the correct amounts- and these letters are only sent out to those who are entitled to them. The idea is to prevent suspicious or questionable refunds before they are sent and not delay your refund.

View the Respond to a Department sample for step-by-step instructions on how to respond online. Notice demo.

For common reasons, you may receive forms or letters.

    • They must confirm that you reported the correct amount of wages and withholdings, as well as that you allocated correctly to New York State (see Checklist for acceptable wage and withholding proof).
    • They’ll have to check your residency.
    • You’re claiming a tax credit or benefit, but they didn’t get a copy of the form when you filed your tax return. (A copy of the form is required for them to review the credit you are claiming.)
    • They need to confirm that you are eligible for the refundable tax credits or itemized deductions you claimed.

  • They need to verify the dependent’s Social Security number or date of birth because you’re claiming a dependent deduction (see Checklist for acceptable proof of a child or dependent).
  • They needed evidence to back up your claim of rental real estate income or loss.
  • They need to double-check data on partnership, S corporation, and trust income and losses.

For instructions on how to respond, check Get ready to respond.

Who can I call about my NY State tax refund?

To make an enquiry about your tax refund, contact the Tax Department:

Call the Tax Department’s automated refund-status line at 518-457-5149 at any time to check on the status of your refund. It offers the same information that you would receive from one of their phone representatives.

How do I contact the NYS Tax Department?

There are several ways you can contact the New York tax department depending on your needs. The table below is a list of ways to easily contact the NYS tax department.

Information Phone Number Active Hours
Check the status of your refund.
Refund status tool (online option)

Additional information about New York State income tax refunds can be found here.

518-457-5149 24/7
Online option: Form 1099-G 518-457-5181 24/7
Personal income tax
Discover more about: Individuals

Also see: Check the status of your refund | Respond to your letter
518-457-5181 8:30 a.m. – 4:30 p.m.
Do you have a problem with your bill or notice?
Respond to your notice or bill via the internet.

Also check out the demo for Online Services | Respond to a Department Notice.

518-485-9791 8:30 a.m.– 4:30 p.m.
Do you disagree with your personal income tax refund?
Online Response: You can respond to your notice or bill online.

Also check out the demo for Online Services | Respond to a Department Notice.

518-485-6549 8:30 a.m.– 4:30 p.m.
1099-G information
For more information, go to: Form 1099-G. 518-457-5181 8:30 a.m.– 4:30 p.m.
Online option:  STAR program: | Register for STAR

Also see: Property Tax Credit Lookup
518-457-2036 8:30 a.m.– 4:30 p.m.
General estate tax
Find out more about: estate tax memos, | estate tax lien release

Also see: Form ET-706, New York Estate Tax Return

518-457-5387 8:30 a.m.– 4:30 p.m.
Estate tax bill payment
Find out more about: estate tax memos, | estate tax lien release

Also see: Form ET-706, New York Estate Tax Return

518-485-9080 8:30 a.m. – 4:30 p.m.
Mortgage recording tax and real estate transfer taxes
Learn about: Mortgage recording tax | Real estate transfer tax 518-457-8637 8:30 a.m. – 4:30 p.m.
Partnership, limited liability company, and limited liability partnership filing fee
Learn about: Limited Liability Companies (LLCs) and Limited Liability Partnerships (LLPs) | Partnerships 518-457-5181 8:30 a.m. – 4:30 p.m.
Refund checks issued to deceased individuals
Learn about: Lost, stolen, destroyed, and uncashed refund checks 518-457-5181 8:30 a.m. – 4:30 p.m.
Forms ordering
Forms and instructions are available online.

To view, download, and print this page, you’ll need Adobe Reader version 6.0 or higher.

518-457-5431 8:30 a.m.– 4:30 p.m.

You can also visit the New York State Taxation and Finance Department office at Harriman Campus Rd, Albany, NY 12226, United States.

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