Multi-state tax · New York
On Form IT-203, New York nonresidents and part-year residents pay tax only on New York’s share of their income.
New York first figures the tax on all your income as if you lived there. Earn a quarter of your income in New York, and you pay a quarter of that tax.
Updated · Sources
Nonresidents, 2026
- 183
- days is the most you can spend in New York, with a home there for substantially all of the year, and stay a nonresident.
- $8,000
- is the 2026 standard deduction for a single filer. A nonresident with New York income must file once New York AGI passes it.
- $0
- is New York City’s income tax on commuters who live outside the city. City government employees are the exception.
New York AGI counts all your income, figured as if you lived in New York. On a joint return, the standard deduction is $16,050.
Which New York residency requirements apply to you?
You are a New York resident if you pass either of the first two tests. A resident files Form IT-201 instead of Form IT-203, and is taxed on all income.
Your domicile is in New York
Your domicile is the place you intend as your permanent home, and you can have only one. It stays in New York until you move with the intent to make a new place your permanent home. A move meant to last a limited time does not change it, however long you stay.
You keep a New York home and spend over 183 days there
This test applies even if your domicile is in another state. The home, a permanent place of abode, can be owned or rented but must be kept for substantially all of the year. A camp or cottage used only for vacations does not count.
You are domiciled in New York but spend 30 days or fewer there
Your New York domicile does not make you a resident in a year when you spend 30 days or fewer in New York. You must also keep no permanent place of abode in New York, and keep one elsewhere all year. A separate 548-day rule covers long stays in a foreign country.
You moved into or out of New York during the year
If your domicile moves into or out of New York during the year, you are usually a part-year resident. You file Form IT-203, reporting all income for your resident period and only New York income for the rest. Keep a New York home all year and spend over 183 days there, and you are a full-year resident instead.
New York City’s residency rules are the same as the state’s, applied within the city. You are a city resident if you are domiciled in the city, or keep a home and spend more than 183 days there.
Working from home by choice leaves the New York tax on a $300,000 salary at $20,002.
A nonresident’s wages are split by workdays in and out of New York. For a telecommuter whose office is in New York, the convenience of the employer rule decides how home days count.
In the office all 240 days
$20,002
Every workday is a New York day, so all $300,000 is New York income.
At home 144 days, by choice
$20,002
The convenience of the employer rule counts the home days as New York days, so the tax does not change.
Home office is a bona fide employer office
$8,001
The home days count as Connecticut days, so New York income falls to $120,000, or 40% of the total.
New York first taxes all $300,000 as if the commuter lived there, after the $8,000 single standard deduction. At this income, New York’s 2026 rates take back the benefit of the lower brackets, so all $292,000 is taxed at 6.85%: $20,002. Schedule A of Form IT-203-B then splits the wages by workdays. New York gets 240 of 240 days in the first two rows, and 96 of 240 in the third. The income percentage (line 45 on the 2025 form) applies that share to the $20,002. Connecticut’s own tax, and its credit for the New York tax, are not shown.
In 2026, New York taxes residents on all income and nonresidents on New York income.
| Resident | Nonresident | |
|---|---|---|
| Return | Form IT-201 | Form IT-203 |
| Wages | All of them | Pay for New York workdays |
| Interest, dividends and stock gains | All of it | None Unless used in a New York business, or shares in certain entities or co-ops holding New York real estate |
| Rent and gains on New York property | All of it | All of it |
| NYC resident tax | 3.078% to 3.876% If you also live in the city | None |
| Credit for tax paid elsewhere | New York’s resident credit For another state’s tax on income earned there | Your home state’s credit Usually covers the tax New York charges |
A nonresident’s share of partnership and New York S corporation income is New York income to the extent it comes from New York sources.
Which mistakes on a New York nonresident tax return lead to an audit or a second bill?
Part of a day counts toward the 183 days
Any time in New York on a calendar day counts toward the 183 days, even a short evening visit. A day is left out only when spent traveling through, boarding a plane, train, bus or ship to leave, or confined to a medical facility. If you keep a New York home but file as a nonresident, log each day’s whereabouts in case of a New York residency audit.
Leaving New York does not move income you already earned
Income you earned before moving out, such as a bonus or an installment sale’s remaining gain, stays in your resident months.
New York taxes stock pay by the workdays you spent there
New York taxes the share of a nonresident’s stock option and restricted stock income that matches their New York workdays. For options, the workdays counted run from grant to vesting, which can span several years. You allocate this income on Form IT-203-F, the multi-year allocation form, and New York may split RSU income the same way.
A New York home can get your investments taxed twice
New York taxes a statutory resident on all income, and their home state taxes them as a resident too. The New York State resident credit, on Form IT-112-R, covers only tax on income from sources in the other state. Investment income has no source in either state, so neither credit applies, and both states can tax it in full.
Yonkers taxes people who work there
On the 2025 Form Y-203, Yonkers charges nonresidents who earn wages or run a business there a 0.5% earnings tax. In 2026, Yonkers residents pay a surcharge of 16.75% of their net state tax instead. Yonkers applies the state’s residency tests within its borders, so living in New York City, Brooklyn included, does not make you a Yonkers resident.
Before you file, a CPA checks every New York day on your IT-203.
Valim’s CPAs prepare Form IT-203 for New York nonresidents and part-year residents.
- We test your year against domicile and the 183-day rule, so you file Form IT-203 only when it is the right return.
- If your home state taxes income, we file its return too, with its credit for the New York tax.
- We plan a move into or out of New York, including the income that accrues before you go.
- We set estimated payments for New York income with no tax withheld.
- If New York sends a residency notice on a return we prepared, we handle the response within your fee.
- Individual return
- from $195
- Business return
- from $495
We quote a flat fee before work starts. We do not bill hourly.
New York nonresident tax questions.
What is New York’s statutory resident test?
Under New York’s statutory resident test, you are a resident if you keep a permanent place of abode there and spend over 183 days. The test applies even if your domicile is elsewhere, and the home must be kept for substantially all of the year. More than 183 days means 184 or more, and any part of a day in New York counts. A statutory resident files Form IT-201 and is taxed on all income, wherever it is earned. Anyone who keeps a New York home and files as a nonresident must be able to prove their day count.
Do you pay NYC tax if you work in NYC but live elsewhere?
No, New York City’s income tax applies only to city residents, and its commuter tax ended on July 1, 1999. For 2026, the NYC resident tax rate runs in four brackets, from 3.078% to 3.876%, and residents pay it on Form IT-201. You still owe New York State tax on pay for work in the city, on Form IT-203 if you live in another state. City government employees who live outside the city are the exception, and pay an equivalent amount on Form NYC-1127. If you moved into or out of the city that year, Form IT-360.1 figures the city tax for your months there.
What is Form IT-203?
Form IT-203 is New York State’s income tax return for nonresidents and part-year residents. You list all your income in the Federal amount column and your New York income in the New York State amount column. New York taxes the total as if you were a resident, then multiplies that tax by your income percentage. The percentage is the New York column divided by the federal column. Residents, including statutory residents, file Form IT-201, the New York resident tax return, instead.
Does the convenience of the employer rule apply to me?
The convenience of the employer rule applies if you live in another state and your assigned or primary office is in New York. New York then counts the days you work from home by choice as New York workdays, and taxes that pay. Home days count as out-of-state days if your employer needs you to work outside New York. Home days also count as out-of-state days if your employer has set up a bona fide employer office at your home. Connecticut and New Jersey apply similar rules only to people who live in a state with one, such as New York.
Do non-residents pay NY state taxes?
Yes, nonresidents pay New York State tax on their New York source income. You are a nonresident if your domicile is outside New York and you are not a statutory resident. New York source income includes pay for work in New York, rent and gains on New York property, and a business run there. Interest, dividends and gains on stocks are generally not New York source income, unless the property is used in a New York business. The rate comes from all your income, so income New York cannot tax still raises your rate.
Do I have to file a New York nonresident tax return?
You have to file Form IT-203 if you have New York source income and your New York AGI is above your standard deduction. New York AGI here means all your income, figured as if you were a New York resident. For 2026, the standard deduction is $8,000 for a single filer and $16,050 on a joint return. File anyway if New York State, New York City or Yonkers tax was withheld from your pay and you want it back. You must also file to claim a refundable or carryover credit, and in a few other cases.
How do I file a nonresident tax return?
You file a New York nonresident tax return on Form IT-203. New York requires you to file IT-203 online whenever your e-file software supports it. A New York part-year resident files the same form for the year of a move in or out. If your home state taxes income, you also file its resident return and claim its credit for the New York tax.
Sources
- New York State DTF, 2025 Instructions for Form IT-203
- New York State DTF, 2026 Instructions for Form IT-2105
- New York State DTF, FAQs on filing requirements, residency and telecommuting
- New York Tax Law § 605, General provisions and definitions
- 20 NYCRR § 105.20, Resident individual
- New York Tax Law § 631, New York source income of a nonresident individual
- 20 NYCRR § 132.18, Earnings of nonresident employees and officers
- 20 NYCRR § 132.24, Stock options, stock appreciation rights and restricted stock
- New York Tax Law § 639, Accruals upon change of residence
- New York Tax Law § 620, Credit for income tax of another state
- New York State DTF, Notice N-00-7 (New York City nonresident earnings tax eliminated)
- New York State DTF, 2025 Instructions for Form Y-203
- NYC Department of Finance, Personal income tax and nonresident employees FAQ
Reviewed and updated September 2026. General information, not advice for your situation.