New York does not tax capital gains differently from wages. The state return starts from your federal figures, so a gain from stock, a rental property or a home that is in your federal adjusted gross income is in the New York base too, and it is taxed through the same graduated rate schedule.
This guide sets out the state rate schedules, what the 2026 rate cut and the high-income supplemental tax do, how New York City and Yonkers residents are charged more, how nonresidents and part-year residents are taxed on gains, and the real-property closing payment on Form IT-2663, using New York Tax Department documents read on 2 November 2026.
The Tax Department's instructions say that the calculation of New York State, New York City and Yonkers income tax "is based on the information you reported" on your federal return. Your New York adjusted gross income is your federal adjusted gross income after certain New York additions and subtractions: the instructions say New York taxes some items the federal government does not and does not tax some items the federal government taxes, and Form IT-225 lists these modifications. The IT-201 booklet does not list a separate rate or schedule for capital gains, so a long-term gain is taxed at the same rates as a short-term gain; that is our reading of the booklet rather than a sentence the Department states.
Because the base is federal, we do not repeat federal rules here (such as the holding-period split or the home sale exclusion amounts). Where a federal rule matters to New York, the Department's own wording is quoted below.
These are the 2025 New York State tax rate schedules printed in the IT-201 instructions (the return filed in 2026). The Department's FY2027 tax expenditure report says that, beginning with the 2026 tax year, an additional 0.2 percentage point rate reduction is phased in over two years for taxpayers with taxable income up to $215,400 ($323,200 for joint filers), fully phased in by tax year 2027 and permanent after that. We have not seen the 2026 return schedules, which are published with the 2026 instructions, so the rates below are 2025 rates and the lower brackets will be slightly lower for 2026.
Next-year note (not the return schedule): the Department's 2026 withholding publication NYS-50-T-NYS (1/26) says the 2026 state rate schedules were revised under Chapter 59 of the Laws of 2025, and its annual schedule for single filers shows 3.9%, 4.4%, 5.15%, 5.4% and 5.9% in place of 4%, 4.5%, 5.25%, 5.5% and 6% on the same income bands up to $215,400, with the higher rates unchanged. That is a withholding table, so the 2026 IT-201 instructions will be the authority for the actual return.
| Single or married filing separately: taxable income over | But not over | Rate on that slice |
|---|---|---|
| $0 | $8,500 | 4% |
| $8,500 | $11,700 | 4.5% |
| $11,700 | $13,900 | 5.25% |
| $13,900 | $80,650 | 5.5% |
| $80,650 | $215,400 | 6% |
| $215,400 | $1,077,550 | 6.85% |
| $1,077,550 | $5,000,000 | 9.65% |
| $5,000,000 | $25,000,000 | 10.3% |
| $25,000,000 | no limit | 10.9% |
| Married filing jointly or qualifying surviving spouse: taxable income over | But not over | Rate on that slice |
|---|---|---|
| $0 | $17,150 | 4% |
| $17,150 | $23,600 | 4.5% |
| $23,600 | $27,900 | 5.25% |
| $27,900 | $161,550 | 5.5% |
| $161,550 | $323,200 | 6% |
| $323,200 | $2,155,350 | 6.85% |
| $2,155,350 | $5,000,000 | 9.65% |
| $5,000,000 | $25,000,000 | 10.3% |
| $25,000,000 | no limit | 10.9% |
The instructions also print a head of household schedule, which we do not reproduce. The same report says that for tax years 2021 through 2032 the top 8.82% rate is replaced by the 9.65%, 10.3% and 10.9% rates shown, and for tax years 2033 and after the top rate reverts to 8.82% on income over $1,077,550 ($2,155,350 for joint filers).
If your New York adjusted gross income is over $107,650, the report says you must also compute a supplemental tax that recaptures the benefit of the lower brackets, and the IT-201 instructions give worksheets for it. For a large gain this matters: the schedule alone understates the tax once income is above that level.
The tables below are our arithmetic on the 2025 schedules above, treating the stated amount as New York taxable income before and after the gain. They are not an official calculation: they ignore credits, deductions and the supplemental tax, so we chose amounts only to show how the gain stacks on top of other income.
| Our illustration | Taxable income before gain | Gain | Tax before | Tax after | Tax added by the gain | Share of the gain |
|---|---|---|---|---|---|---|
| State, single | $50,000 | $20,000 | $2,585.00 | $3,685.00 | $1,100.00 | 5.50% |
| State, joint | $80,000 | $40,000 | $4,067.50 | $6,267.50 | $2,200.00 | 5.50% |
| NYC resident tax, single | $70,000 | $20,000 | $2,588.20 | $3,363.40 | $775.20 | 3.88% |
In both state rows the whole gain falls in the 5.5% slice. A gain that pushes income into the 6%, 6.85% or higher slices would be taxed at those rates on the part that crosses each line.
For a New York City resident the city tax is a second tax on the same taxable income: the IT-201 instructions have you generally enter the line 38 amount on line 47 (a separate worksheet applies if you deducted a contribution to the New York Charitable Gifts Trust Fund), so a gain is taxed by the city at the same time as by the state. For taxable income of $65,000 or more the city uses a rate schedule; for single filers the 2025 schedule is 3.078% on the first $12,000, 3.762% from $12,000 to $25,000, 3.819% from $25,000 to $50,000 and 3.876% above $50,000. The instructions print separate city schedules for joint and head of household filers.
Yonkers residents pay a surcharge on top of the state tax: the Yonkers worksheet applies a rate of 16.75% to an amount worked out from your New York State tax less the credits it lists, so it is a share of the state tax and not a tax on the gain as such.
A nonresident is taxed only on New York source income; the IT-203 instructions say a nonresident "is subject to New York State tax on income derived from New York State sources". A part-year resident pays tax on all income received while a resident plus New York source income received while a nonresident. The IT-203 method is to calculate a base tax as if you were a full-year resident and then work out the share of that tax that applies to New York.
For capital gains, the New York-source categories the instructions list include:
The instructions say gains from the sale of intangible personal property (such as stocks and bonds) are not New York source income for a nonresident unless the property is used in a business carried on in New York. Gains on real property are not allocated by a business percentage, and you use the federal tax basis. A nonresident's New York capital loss is limited to $3,000 ($1,500 if married filing separately) on the New York return, with the excess carried forward, according to the IT-203 instructions. You attach a copy of federal Schedule D and, for real property, note the states where the property is located.
Nonresident individuals, estates and trusts must generally estimate their tax on the gain from selling New York real property and pay it with Form IT-2663 when the deed is recorded: the instructions say to submit the form and the estimated tax to the recording officer of the county when the deed is presented. The requirement does not apply to people who are New York residents at the time of the sale. The estimated tax is credited when you file the New York return, so it is a prepayment and not an extra tax.
For an installment sale of New York real property, the IT-2663 instructions say you must compute the total gain but pay estimated tax only on the part of the gain that will be reported on your 2026 federal return. For installment payments received in later years you pay estimated tax with Form IT-2105 (individuals) or IT-2106 (fiduciaries).
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