Money & Taxes · Hudson Valley
Yonkers Adds a Surcharge on Top of Your State Income Tax
If you live in Yonkers, you owe an extra city surcharge calculated as a share of your New York State income tax. It surprises new residents because it is not a separate gross-income tax.
Published June 21, 2026 · Last verified June 21, 2026
The Yonkers income-tax surprise starts with the city line. If you live inside Yonkers, New York adds a resident surcharge on top of your regular state income tax. It is not figured as a separate tax on your gross pay. It is figured as a percentage of the state income tax you already owe.
The surcharge is collected on the state resident return, Form IT-201, so a Yonkers resident does not file a separate city resident form. If you work in Yonkers but live somewhere else, that is a different nonresident earnings tax on wages, filed on Form Y-203.
Before you budget, confirm the exact address is inside the City of Yonkers and check the current surcharge rate in the state Tax Department’s Yonkers instructions. The rate can change, so do not rely on an old blog post or last year’s quick estimate.
A tax preparer or the state’s own forms can do the math. The useful thing to bring them is the address, expected state taxable income, and whether the issue is Yonkers residence, Yonkers work, or both.