If you're a New York City resident, you may qualify for several local tax credits that can reduce your New York City tax liability or increase your refund.
In most cases, these credits are calculated automatically once you've entered all of your federal, New York State, residency, income, and dependent information accurately.
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New York State Return > New York City and Yonkers Residents
What New York City Credits Are Available?
Depending on your eligibility, you may qualify for one or more of the following credits:
- New York City School Tax Credit
- New York City Household Credit
- New York City Earned Income Credit
- New York City Child and Dependent Care Credit
- New York City Income Tax Elimination Credit
- New York City Enhanced Real Property Tax Credit
New York City School Tax Credit
The New York City School Tax Credit is available to eligible New York City residents and part-year residents.
The credit is generally based on:
- Filing status
- Income
- Residency status
- Length of New York City residency for part-year residents
For many full-year residents with income of $250,000 or less, the credit is generally:
- $63 for Single, Married Filing Separately, or Head of Household filers
- $125 for Married Filing Jointly or Qualifying Surviving Spouse filers
Part-year residents may qualify for a prorated credit based on the number of months they lived in New York City during the year.
New York City Household Credit
The New York City Household Credit is available to qualifying New York City residents whose income falls within certain limits.
The credit amount is based on:
- Filing status
- Federal adjusted gross income
- Number of dependents
Eligible taxpayers with lower incomes may receive a credit ranging from a few dollars to more significant amounts depending on household size and income.
The program automatically calculates the credit if you qualify.
New York City Earned Income Credit
The New York City Earned Income Credit is available to taxpayers who qualify for the federal Earned Income Credit (EIC).
If you qualify for the federal Earned Income Credit and are a New York City resident, the New York City credit is generally calculated automatically.
You may also qualify if you're eligible for the:
- New York State Earned Income Credit, or
- Noncustodial Parent New York State Earned Income Credit
depending on your situation.
New York City Child and Dependent Care Credit
This credit may be available if:
- You qualify for the federal Child and Dependent Care Credit.
- You were a New York City resident during the tax year.
- You meet the applicable income requirements.
For 2026, New York City residents with federal adjusted gross income of $30,000 or less and a qualifying child under age 4 may qualify for this credit.
The credit is generally calculated automatically using information entered on the federal return.
New York City Income Tax Elimination Credit
Some lower-income New York City residents may qualify for the New York City Income Tax Elimination Credit.
This credit is designed to reduce or completely eliminate New York City income tax for eligible taxpayers.
If you qualify, Form IT-270, New York City Income Tax Elimination Credit, may be required.
The program will generally determine eligibility and calculate the credit automatically when all required information has been entered.
New York City Enhanced Real Property Tax Credit
Certain New York City residents may qualify for the Enhanced Real Property Tax Credit.
Eligibility may depend on:
- Residency
- Income
- Property tax obligations
- Household circumstances
- Homeownership or rental status
Additional information may be required to determine eligibility.
How Do These Credits Affect My Return?
New York City credits may:
- Reduce your New York City tax liability
- Increase your refund
- Reduce the amount owed on your return
- Eliminate some or all New York City income tax
The actual benefit depends on the credits for which you qualify and your overall tax situation.
Do I Need to Enter These Credits Separately?
Many New York City credits are calculated automatically using information already entered on:
- Your federal return
- Your New York return
- Your residency information
- Your dependent information
- The New York City and Yonkers Residents section
However, certain credits may require an additional form, such as:
- Form IT-270 for the New York City Income Tax Elimination Credit
- Form IT-216 for Child and Dependent Care Credit calculations
- Form IT-215 for Earned Income Credit calculations
What If I Was a Part-Year New York City Resident?
If you moved into or out of New York City during the year:
- Some credits may be prorated based on the number of months you were a resident.
- Additional residency calculations may be required.
- You may need to complete Form IT-360.1, Change of City Resident Status.
This form is used to calculate certain New York City taxes and credits for part-year residents.
Important Information
- You must generally be a New York City resident to qualify for most New York City credits.
- Residency information entered in the New York City and Yonkers Residents section affects eligibility.
- Some credits have income limitations.
- Most credits are calculated automatically by the program.
- Part-year residents may receive prorated credit amounts.
- Certain credits require additional forms.
- Keep documentation supporting any claimed credits with your tax records.
Additional Information
Be sure to complete all residency, dependent, and income information before reviewing your New York City credits. Accurate information helps ensure that all available New York City credits are properly calculated on your return.
Because most New York City credits are based on information already entered elsewhere in the return, carefully reviewing your residency status, income amounts, and dependent information can help prevent missed credits and ensure your return is calculated correctly.