The New York City Commuter Tax was once imposed on certain individuals who worked in New York City but lived elsewhere. However, the commuter tax has been repealed and generally does not apply to individual taxpayers filing current-year New York returns.
What Was the New York City Commuter Tax?
The New York City Commuter Tax was a local tax that applied to certain nonresidents who earned wages while working in New York City.
The tax was separate from:
- New York State income tax
- New York City resident income tax
The commuter tax was repealed for individual taxpayers and is no longer assessed on current personal income tax returns.
Do I Owe New York City Commuter Tax?
For most taxpayers, the answer is No.
If you're filing a current-year New York return, you generally will not owe a New York City Commuter Tax simply because you worked in New York City.
Working in New York City alone does not create a commuter tax liability.
Why Does This Section Still Appear?
The section may still appear in the program because it is associated with New York City residency and local tax questions.
The information may be used to:
- Determine New York City residency status
- Calculate New York City resident taxes
- Calculate New York City credits
- Review historical local tax information
In most cases, no entry is required.
Does Working in New York City Create a New York City Tax Liability?
Not by itself.
Generally:
- New York City resident income tax applies to qualifying New York City residents.
- Nonresidents who work in New York City are generally not subject to New York City resident income tax.
- The former commuter tax no longer applies.
If you're a nonresident working in New York City, you may still owe New York State income tax on New York-source income, but that is different from New York City resident tax.
What If I Am a New York City Resident?
If you're a New York City resident:
- You may be subject to New York City resident income tax.
- The tax is calculated as part of your New York State return.
- No separate New York City income tax return is required.
New York City includes:
- Bronx
- Brooklyn (Kings County)
- Manhattan (New York County)
- Queens
- Staten Island (Richmond County)
If you live in one of these boroughs, New York City resident taxes and credits may apply.
What If I Moved Into or Out of New York City During the Year?
If you were a part-year New York City resident:
- You may need to complete Form IT-360.1, Change of City Resident Status.
- New York City taxes may be prorated based on your residency period.
- Certain New York City credits may also be prorated.
Accurate residency dates are important because they affect how New York City taxes and credits are calculated.
What New York City Taxes Still Apply?
Although the commuter tax has been repealed, New York City residents may still be subject to:
- New York City resident income tax
- New York City household credit calculations
- New York City school tax credits
- New York City earned income credit calculations
- New York City child and dependent care credit calculations
- New York City income tax elimination credit
These taxes and credits are calculated automatically when applicable.
How Does This Affect My Return?
For most taxpayers, this section:
- Does not create additional tax.
- Does not affect income calculations.
- Does not affect refunds.
- Does not affect balances due.
The program generally determines automatically whether New York City taxes or credits apply based on the residency information you provide.
Important Information
- The New York City Commuter Tax was repealed for individual taxpayers.
- Most taxpayers do not owe any New York City Commuter Tax.
- Working in New York City does not automatically make you subject to New York City resident income tax.
- New York City resident tax generally applies only to qualifying New York City residents.
- There is no separate New York City individual income tax return.
- Local tax calculations are generally determined automatically based on residency information entered on the return.
- Part-year residents may need to complete Form IT-360.1.
Additional Information
Be sure to complete the New York City and Yonkers Residents section carefully. For most taxpayers, residency information, not work location, determines whether New York City taxes apply.
If you're unsure whether you're considered a New York City resident, review where you maintained your permanent home and whether you lived in one of New York City's five boroughs during the tax year. Accurate residency information helps ensure that any New York City taxes or credits are calculated correctly.