Disclaimer: This article is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs.
I was born in NYC and lived there until after I graduated from college. I knew the cost of living was expensive in NYC and I would save money by moving to NJ. Rent was cheaper gas, was cheaper, and surprisingly I was able to take home more of my pay check.
I was curious to find out what the take home pay in NYC looked like for a salary of 100k.
If you live and work in NYC and make a salary of $100,000 per year you can expect to take home about $68,000 per year or 5,600 per month after Federal, State, and Local taxes. This amount may be higher or lower depending on additional payroll deductions such as 401k contributions or health insurance premiums.
There are a few states that do not have a personal income tax, unfortunately, New York is not one of them. In addition to having a state income tax, if you live in NYC you will pay a local income tax.
Overview of Take Home Pay After Taxes for 100k salary in NYC
The following tables assume a Single Filer with no, pre-tax deductions (i.e) 401k and health care premiums.
| Yearly | Monthly | Bi-Weekly | Weekly | |
| Pre -Tax Salary | $100,000 | $8,333 | $3,846 | $1,923 |
| Take Home Salary | $68,204 | $5,684 | $2,623 | $1,312 |
The Following table gives additional details of approximate tax deductions in NYC based on a calculator on Smart Asset take-home pay calculator.
| Yearly | Monthly | Bi-Weekly | Weekly | |
| Federal Taxes | 15,247.00 | 1,270.58 | 586.42 | 293.21 |
| FICA | 7,650.00 | 637.50 | 294.23 | 147.12 |
| State Taxes | 5,458.00 | 454.83 | 209.92 | 104.96 |
| Local Taxes( NYC) | 3,441.00 | 286.75 | 132.35 | 66.17 |
| Total | 31,796.00 | 2,649.67 | 1,222.92 | 611.46 |
Federal Tax and FICA on 100k Salary in NYC
Federal Insurance Contribution Act (FICA) is a paycheck deduction that goes toward Social Security and Medicare . If you earn $100,000 in yearly salary, you will pay approximately $7,650 a year toward FICA.
https://www.thebalance.com/new-york-city-income-tax-3193280
If you live in NYC you will pay approximately $15,000 in Federal Income Taxes. This rate remains unchanged wherever you live in the United States.
State Tax and Local Tax on 100k Salary in NYC
New York State is one of the three states with the highest personal income tax according to CNBC. In addition to the State’s already high personal income tax, if you live in New York City you will also pay an additional local tax.
The NYC local tax ranges from 3.078% to 3.876% per year. On a 100k per year salary that is approximately $3400 per year in NYC taxes.
According to the Balance:
New York City has four tax brackets ranging from 3.078 percent to 3.876 percent.”Every income-earning individual, estate, and trust residing or located in New York City must pay the New York City personal income tax. Taxpayers who lived in NYC for only part of the year can calculate their tax based on the number of days they lived in the city.”
The Balance
Smart Asset has a tax calculator with updated rates.
Someone living in NYC and making a 100k per year salary would pay approximately $286 per month in NYC taxes.
401K Pre-Tax Deduction on 100k Salary in NYC
The IRS allows a portion of your salary to be contributed to a 401k retirement account before taxes. A contribution to 401k account reduces the amount you pay in taxes. However, it also reduces your take home pay, since a portion of your salary is now going toward your 401k retirement account.
The table below gives an example of the take-home pay for someone living in NYC who contributes $5000 to their retirement account.
| Yearly | Monthly | Bi-Weekly | Weekly | |
| 401k Contribution | $5,000 | $417 | $192 | $96 |
| Federal Taxes | $14,075 | $1,173 | $541 | $271 |
| FICA | $7,650 | $638 | $294 | $147 |
| State | $5,134 | $428 | $197 | $99 |
| Local | $3,247 | $271 | $125 | $62 |
| Total Deductions | $35,106 | $2,509 | $1,158 | $579 |
| Yearly | Monthly | Bi-Weekly | Weekly | |
| Pre Tax | $100,000 | $8,333 | $3,846 | $1,923 |
| Take Home | $64,894 | $5,825 | $2,688 | $1,344 |
Other Considerations that Might Impact your Take Home Pay in NYC
Single vs Married
The take home pay for this post was estimated based on a Single Person household. Married households have a slightly different tax rate, and tax rate may fluctuate based on your spouse’s income.
Flexible Spending Accounts & Health Savings Accounts
Contributing to a Flexible Spending Account (FSA) or a Health Savings Account (HSA) allows for additional tax savings. Contributions to FSA and HSA initially reduce your take-home pay. Once you incur HSA and FSA eligible expenses, you can use the balance in these accounts to cover those expenses.
If you have dependent care or health care expenses, you take home less money in the short term, but in the long run, you are able to cover expenses. Essentially you have more of your salary available, but you can only use it for specific expenses.
Commuter Benefits
Some employers offer the opportunity to pay for your commute with pre-tax dollars. This is another item that could impact your take home salary.
According to NYC.gov, many NYC employees can receive a pre-tax commuter benefit up to $270. If you commute using the bus or a train, a monthly MetroCard in 2020 costs $121.
Beginning January 1, for-profit and nonprofit employers with 20 or more full-time non-union employees in New York City must offer their full-time employees the opportunity to use pre-tax income to pay for their commute. Under federal tax law and effective January 1, 2020, employees can currently use up to $270 a month of their pre-tax income to pay for qualified transportation.
https://www1.nyc.gov/site/dca/about/commuter-benefits-law.page
More Information About Take Home Salary
Taxes are complicated and everyone’s exact situation is unique. We used a simple example to give a general idea of what the take-home pay in NYC might look like. Smart Asset has a calculator that allows you to add additional details to determine a more accurate take home pay.
Some of the items available in the calculator are:
- Itemized deductions
- IRA Contributions
- 401k Contributions
- State Personal Exemptions
The calculator available on Smart Asset to calculate your take home pay can be found at the link below:
https://smartasset.com/taxes/paycheck-calculator#AiG9gI3KeY
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