Do I Owe New York City Commuter Tax?

The New York City Commuter Tax was previously imposed on certain individuals who worked in New York City but did not live there. However, the New York City Commuter Tax was repealed and no longer applies to individual taxpayers.

Pathway to this entry is:
New York State Return > New York City and Yonkers Residents > New York City Commuter Tax

What Was the New York City Commuter Tax?

The New York City Commuter Tax was a tax imposed on certain nonresidents who earned income while working in New York City.

The tax was separate from New York State income tax and New York City resident income tax.

Do I Owe New York City Commuter Tax?

For most taxpayers, the answer is No.

The New York City Commuter Tax was repealed and generally does not apply to current individual income tax returns.

If you are completing a current-year New York return, you typically will not owe New York City Commuter Tax regardless of whether you worked in New York City.

Why Does This Section Still Appear?

The section remains as part of the New York interview because some taxpayers may need to review historical information, residency data, or other local tax calculations that are associated with New York City residency questions.

In most cases, no additional entry is required.

Does Working in New York City Create a New York City Tax Liability?

Not by itself.

Generally:

• New York City resident tax applies to individuals who are residents of New York City.
• Nonresidents working in New York City are generally not subject to New York City resident income tax.
• The former commuter tax no longer applies.

What If I Am a New York City Resident?

If you are 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 return is required.

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 will generally determine automatically whether any local tax calculations apply.

Important Information

• The New York City Commuter Tax was repealed.
• Most taxpayers will not owe any New York City Commuter Tax.
• Simply working in New York City does not automatically make you subject to New York City resident income tax.
• New York City resident tax applies only to qualifying New York City residents.
• Local tax calculations are generally determined automatically based on residency information entered on the return.

Additional Information

Be sure to complete the New York City and Yonkers Residents section accurately. Residency information, rather than work location alone, is generally what determines whether New York City taxes apply to your return.