Yonkers, New York (resident surcharge)
YONK · local · 12 cited facts
| Category | Provision | Value | Source |
|---|---|---|---|
| rate | Yonkers resident income tax surcharge rate | 16.75% of net New York State tax (a surcharge on NY liability, not a separate income base); reaches capital gains through the NY tax it rides on | sources (1)N.Y. Tax Law §1321 (Yonkers resident income tax surcharge); TY2025 IT-201 Instructions (Yonkers worksheet, line n) · medium confidence · as of 2026-07-19 · TY 2025 Yonkers resident income tax surcharge: 16.75% of the resident's net New York State tax Yonkers resident tax rate (16.75%) ... Multiply line m by line n. This is your Yonkers resident income tax surcharge. Note: The surcharge is a flat 16.75% (line n = 0.1675) applied to net New York State tax (line m), not to a base of income, so it inherits the NY base and character in full (capital gains included). Yonkers nonresidents instead owe a 0.5% earnings tax that does NOT reach capital gains (Form Y-203); this fact models the RESIDENT surcharge only. https://www.tax.ny.gov/forms/current-forms/it/it201i.htm |
| character | Long-term capital gains treatment | Ordinary rate: no preferential long-term rate; the surcharge is a percentage of NY State tax, which taxes capital gains as ordinary income | sources (1)N.Y. Tax Law §1321 (Yonkers resident income tax surcharge); TY2025 IT-201 Instructions (Yonkers worksheet, line n) · medium confidence · as of 2026-07-19 · TY 2025 Yonkers resident income tax surcharge: 16.75% of the resident's net New York State tax Yonkers resident tax rate (16.75%) ... Multiply line m by line n. This is your Yonkers resident income tax surcharge. Note: The surcharge is a flat 16.75% (line n = 0.1675) applied to net New York State tax (line m), not to a base of income, so it inherits the NY base and character in full (capital gains included). Yonkers nonresidents instead owe a 0.5% earnings tax that does NOT reach capital gains (Form Y-203); this fact models the RESIDENT surcharge only. https://www.tax.ny.gov/forms/current-forms/it/it201i.htm |
| conformity | Loss carryforward | Conforms to IRC §1212: the surcharge rides on NY State tax, which applies the federal indefinite capital-loss carryforward | sources (1)IRC §1212(b) · high confidence · as of 2026-06-21 · TY 2025 IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year. Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim |
| qoz-conformity | QOZ conformity (IRC §1400Z-2) | Non-conforms: the surcharge rides on NY State tax, which decouples from IRC §1400Z-2 (the NY addback flows through) | sources (1)N.Y. Tax Law §612(b)(42) · high confidence · as of 2026-07-20 · TY 2025 New York does not conform to IRC §1400Z-2 QOZ gain deferral and exclusion The amount of any gain excluded from federal gross income for the taxable year by subparagraph (A) of paragraph (1) of subsection (a) of section 1400Z-2 of the internal revenue code. Note: N.Y. Tax Law §612(b)(42) requires an addback of any gain excluded from federal income under IRC §1400Z-2. Deferred or permanently excluded QOZ gain is fully taxable in New York in the year of reinvestment into a QOF. https://www.nysenate.gov/legislation/laws/TAX/612 |
| qsbs-conformity | QSBS conformity (IRC §1202) | Conforms: the surcharge rides on NY State tax, which conforms to IRC §1202 by omission | sources (1)N.Y. Tax Law §612(a); §612(b) (no §1202 addition enumerated) · medium confidence · as of 2026-06-20 · TY 2025 New York conforms to IRC §1202 QSBS gain exclusion by omission: no §1202 addback in §612(b) New York adjusted gross income of a resident individual means his federal adjusted gross income as defined in the laws of the United States for the taxable year, with the modifications specified in this section. Note: Conformity established by negative inference: N.Y. Tax Law §612(a) begins from federal AGI; §612(b) enumerates additions to NY income but contains no addition for amounts excluded under IRC §1202. Federally excluded QSBS gain therefore never enters NYAGI. N.Y. Tax Law §612(c)(43) is NOT a QSBS provision; it is the QOZ gain-recovery subtraction (mirror of §612(b)(42)). No affirmative statutory text confirms §1202 conformity; medium confidence per schema rules because proof-by-omission is not verbatim statutory text. https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf |
| muni-instate | In-state muni bond interest | Exempt: the surcharge rides on NY State tax, where NY and NYC bonds are not added back | sources (1)N.Y. Tax Law §612(b)(1) · high confidence · as of 2026-06-22 · TY 2025 NY taxes out-of-state muni bond interest add-back per Tax Law §612(b)(1); NY bonds exempt Interest income on obligations of any state other than this state, or of a political subdivision of any such other state unless created by compact or agreement to which this state is a party, to the extent not properly includible in federal adjusted gross income Note: N.Y. Tax Law §612(b)(1) requires addition of out-of-state muni interest to NY AGI. Verbatim text extracted from nysenate.gov. NY-issued bonds (state and subdivisions) are exempt by negative implication: the statute only requires addition of obligations of 'any state other than this state.' https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf |
| muni-outstate | Out-of-state muni bond interest | Taxable: the surcharge rides on NY State tax, where out-of-state muni interest is added back | sources (1)N.Y. Tax Law §612(b)(1) · high confidence · as of 2026-06-22 · TY 2025 NY taxes out-of-state muni bond interest add-back per Tax Law §612(b)(1); NY bonds exempt Interest income on obligations of any state other than this state, or of a political subdivision of any such other state unless created by compact or agreement to which this state is a party, to the extent not properly includible in federal adjusted gross income Note: N.Y. Tax Law §612(b)(1) requires addition of out-of-state muni interest to NY AGI. Verbatim text extracted from nysenate.gov. NY-issued bonds (state and subdivisions) are exempt by negative implication: the statute only requires addition of obligations of 'any state other than this state.' https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf |
| agency-obligations | GSE bond interest (FNMA/FHLMC) | Taxable: the surcharge rides on NY State tax, where GSE interest is taxable | sources (1)NY Department of Taxation and Finance, TSB-M-95(4)I (January 29, 1996); supersedes TSB-M-86-(8)I · high confidence · as of 2026-06-22 · TY 2025 NY TSB-M-95(4)I: FNMA bonds/debentures and FHLMC listed as 'Yes' (subject to NY income tax) Federal Home Loan Mortgage Corporation (Freddie Macs): Subject to New York State Income Tax; Yes. Federal National Mortgage Association (Fannie Mae): (a) Interest on Bonds and Debentures (all tax years): Subject to New York State Income Tax; Yes. Note: TSB-M-95(4)I is the controlling NY DTF guidance on federal agency bond taxability. Verbatim text extracted from PDF. It explicitly distinguishes exempt GSEs (FHLB: 'No'; FFCB: 'No') from taxable ones (FNMA/FHLMC/GNMA: 'Yes'). The mechanism is N.Y. Tax Law §612(c)(2): a subtraction applies only when a federal statute specifically bars state taxation of the bondholder interest. No such statute exists for FNMA or FHLMC. https://www.tax.ny.gov/pdf/memos/income/m95_4i.pdf |
| dividend-qualified | Qualified dividend income | Ordinary rate: no preferential rate for qualified dividends; taxed through the NY State tax the surcharge rides on | sources (1)TY2025 IT-201 Instructions (rate schedule for married filing jointly) · medium confidence · as of 2026-06-10 · TY 2025 New York top stated rate: 10.9% on New York taxable income above $25,000,000 (MFJ, TY2025) For taxable years beginning on or after January 1, 2023, the rates of tax imposed under this section are: 4% on income to $17,150; 4.5% from $17,151 to $23,600; 5.25% from $23,601 to $27,900; 5.85% from $27,901 to $161,550; 6.25% from $161,551 to $323,200; 6.85% from $323,201 to $2,155,350; 9.65% from $2,155,351 to $5,000,000; 10.3% from $5,000,001 to $25,000,000; and 10.9% above $25,000,000, for married individuals filing a joint return; provided, this subparagraph shall apply only to taxable years beginning on or after January first, two thousand twenty-one and before January first, two thousand twenty-eight. Note: The elevated brackets (9.65%, 10.3%, 10.9%) were extended through TY2032 by the FY2026 budget (A3009-C, signed 2025-05-09): N.Y. Tax Law §601 now applies them to taxable years beginning after 2025 and before 2033 ('FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FIVE AND BEFORE TWO THOUSAND THIRTY-THREE'). The 10.9% bracket applies above $25M (joint); for most high-capital-gain filers the operative range is 9.65% to 10.3%. The recapture trap (see NY_RATE_RECAPTURE) can produce higher effective rates between $107,650 and ~$161,500. No preferential LT rate: NY taxes capital gains as ordinary income at these rates. Standard deduction $16,050 MFJ (TY2025). https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf |
| treasury | U.S. Treasury interest | Exempt: 31 U.S.C. §3124(a) prohibits state and local taxation of U.S. government obligations | sources (1)31 U.S.C. §3124(a) · high confidence · as of 2026-06-20 · TY 2025 U.S. Treasury interest exempt from New York income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax. Note: 31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124 |
| fhlb-ffcb | FHLB and FFCB bond interest | Exempt: 12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB) mandate state and local tax exemption | sources (2)12 U.S.C. §1433 (Federal Home Loan Bank Act) · high confidence · as of 2026-06-20 · TY 2025 FHLB and FFCB bond interest exempt from New York income tax: federal enabling statutes mandate state tax exemption Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority. Note: 12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim12 U.S.C. §2023 (Farm Credit Act) · high confidence · as of 2026-06-20 · TY 2025 Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124). Note: 12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim |
| filing-status-flat | Filing status: flat surcharge rate | Yes: the surcharge is a single 16.75% of NY State tax regardless of filing status; any marriage penalty is inherited from the underlying NY tax, not added by Yonkers | sources (1)N.Y. Tax Law §1321 (Yonkers resident income tax surcharge); TY2025 IT-201 Instructions (Yonkers worksheet, line n) · medium confidence · as of 2026-07-19 · TY 2025 Yonkers resident income tax surcharge: 16.75% of the resident's net New York State tax Yonkers resident tax rate (16.75%) ... Multiply line m by line n. This is your Yonkers resident income tax surcharge. Note: The surcharge is a flat 16.75% (line n = 0.1675) applied to net New York State tax (line m), not to a base of income, so it inherits the NY base and character in full (capital gains included). Yonkers nonresidents instead owe a 0.5% earnings tax that does NOT reach capital gains (Form Y-203); this fact models the RESIDENT surcharge only. https://www.tax.ny.gov/forms/current-forms/it/it201i.htm |