New York Payroll Compliance
Every rate, wage base, and threshold New York employers need for 2026 — sourced from NYS DOL, Dept. of Tax & Finance, DFS, and the Workers’ Comp Board — with the regional and local rules that override the state floor.
Minimum Wage & Hours
New York operates a two-tier regional minimum wage. For 2026, the rate is $17.00/hour in New York City, Nassau County, Suffolk County, and Westchester County (the “downstate” tier), and $16.00/hour in the rest of the state. Both tiers rose by $0.50 on January 1, 2026, marking the third straight year of scheduled increases under the 2023 budget agreement. Starting January 1, 2027, the rate will be indexed to the Northeast Region CPI-W.
| Item | 2026 Value | Notes |
|---|---|---|
| Downstate minimum wage | $17.00/hr | NYC, Nassau, Suffolk, Westchester |
| Upstate minimum wage | $16.00/hr | Rest of state (52 counties) |
| Food service tipped cash (downstate) | $11.35/hr | $5.65 tip credit; total must reach $17.00 |
| Food service tipped cash (upstate) | $10.70/hr | $5.30 tip credit; total must reach $16.00 |
| Service employees (downstate) | $14.15/hr | Non-food; $2.85 tip credit |
| Executive/admin exempt salary (downstate) | $1,275/wk | $66,300/yr; up from $1,237.50/wk in 2025 |
| Overtime threshold | 40 hrs/week | Federal FLSA; live-in residential workers OT after 44 hrs |
| Spread-of-hours pay | 1 extra hour | When workday spans > 10 hours or includes a split shift |
| Next adjustment | Jan 1, 2027 | CPI-W indexing begins; 3% annual cap, off-ramp if UI > 9% |
Regional & Local Wage Rules
Unlike California, New York does not permit local ordinances that set higher minimums than the state schedule — the two-tier state system is the governing floor. However, the downstate/upstate split creates real payroll complexity for employers with workers across regions. The rate is determined by where the employee physically performs work, not where the employer is based.
State Income Tax Withholding
New York uses a 9-bracket graduated income tax ranging from 4% to 10.9% (the top rate applies only to single filers with taxable income above $25 million). New York also imposes a supplemental tax recapture on filers with AGI above $107,650 that can effectively flatten the marginal-rate advantage. NYC and Yonkers levy separate local income taxes on residents.
| Item | 2026 Value | Notes |
|---|---|---|
| Withholding method | Bracket / exact | Publication NYS-50-T-NYS (revised January 2026) |
| Bracket range | 4% – 10.9% | 9 statutory brackets for single & MFJ filers |
| Supplemental wage rate | See NYS-50-T | Aggregate or method-II; bonuses combined with regular wages |
| Required certificate | Form IT-2104 | NY does not allow allowances for self or spouse — dependent-based only |
| Nonresident allocation | Form IT-2104.1 | For employees who work in NY but reside elsewhere |
| NYC resident tax | 3.078% – 3.876% | 4 brackets; on top of state tax; Publication NYS-50-T-NYC |
| Yonkers surcharge | 16.75% of NY tax | On resident’s net state tax liability; Publication NYS-50-T-Y |
| State standard deduction | $8,000 / $16,050 | Single / MFJ; built into withholding tables |
| Reciprocity | None | NY has no reciprocity agreements with any state |
Paid Family Leave (PFL) & Disability Benefits (DBL)
New York’s two-part system is different from most PFML states: PFL covers bonding, family care, and military exigency (12 weeks at 67% of average weekly wage), while DBL covers the employee’s own non-occupational illness or injury (26 weeks at 50%, capped at $170/week — a floor unchanged since 1989). Combined PFL + DBL are limited to 26 weeks in any 52-consecutive-week period.
| Item | 2026 Value | Notes |
|---|---|---|
| PFL contribution rate | 0.432% | Employee-funded; up 11.31% from 0.388% in 2025 |
| PFL annual cap | $411.91 | Employee stops contributing once cap is reached |
| PFL max weekly benefit | $1,228.53 | 67% of NYSAWW ($1,833.63) |
| PFL max annual benefit | $14,742.36 | Over 12 weeks of leave |
| PFL wage cap | $95,348.76 | Annualized NYSAWW; wages above this not subject to contribution |
| DBL employee contribution | 0.5%, cap $0.60/wk | Maximum $31.20 per year per employee |
| DBL max weekly benefit | $170 | 50% of AWW, unchanged since 1989 |
| Eligibility (full-time) | 26 weeks | Working 20+ hrs/wk for a covered employer |
| W-2 reporting | Box 14 (PFL) | Report as “NY PFL”; DBL as “NY SDI” |
Unemployment Insurance (SUI)
The 2026 UI wage base jumped from $12,800 to $17,600 under the FY2026 budget, which also paid off the state’s $8 billion federal UI loan and restored trust fund solvency. Starting in 2027, the wage base will index automatically to 18% of the state average annual wage each January. Rate schedules dropped to Size of Fund Index column “0.5% but less than 1.0%” for 2026, delivering an estimated $100/employee savings.
| Item | 2026 Value | Notes |
|---|---|---|
| UI taxable wage base | $17,600 | Up $4,800 from 2025; then indexed annually |
| UI rate range | 1.7% – 9.5% | Includes 0.075% Re-employment Services Fund (RSF) |
| New employer total rate | 4.1% | 4.025% normal + 0.075% RSF |
| New employer normal rate | 3.4% | Capped by law; before subsidiary + RSF |
| Interest Assessment Surcharge | Eliminated | Trust fund debt paid off in FY2026 budget |
| Quarterly return | Form NYS-45 | Combined withholding, wage reporting, and UI |
| Maximum weekly UI benefit | $869 | Effective October 2025 (up from $504 — first hike since 2019) |
Official New York .gov Resources
Verify every figure and register for accounts at the source. These are the agencies New York employers interact with for payroll.