New York City

New York City income tax: 3.078% to 3.876% on NYC taxable income (same base as NY state; no LT preference)

“For taxable year 2025, the New York City resident tax is imposed on New York City taxable income at the following rates: 3.078% on income to $21,600; 3.762% from $21,601 to $45,000; 3.819% from $45,001 to $90,000; and 3.876% above $90,000, for married individuals filing a joint return.”

Note: NYC brackets are extremely narrow the top rate of 3.876% applies to all income above $90,000 MFJ (essentially flat for any capital-gain-sized income). NYC does NOT provide any preferential LT capital gain rate. Capital gains taxed at same graduated-but-effectively-flat 3.876% rate. The NY state benefit-recapture trap (above $107,650 NYAGI) is separate and in addition to this NYC tax both apply simultaneously. Combined NYC+NYS top: ~14.776%.

IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback

“In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.”

Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.

NYC follows NY state muni treatment: NYC/NY bonds exempt; out-of-state muni interest taxable via §612(b)(1) add-back

“Interest income on obligations of any state other than this state, or of a political subdivision of any such other state unless created by compact or agreement to which this state is a party, to the extent not properly includible in federal adjusted gross income.”

Note: Verbatim N.Y. Tax Law §612(b)(1). NYC taxable income starts from NY state taxable income (N.Y.C. Admin. Code §11-1712); the §612(b)(1) add-back flows through to NYC income. NYC bonds and NY state bonds are both exempt (not listed in §612(b)(1)).

NYC follows NY state muni treatment: NYC/NY bonds exempt; out-of-state muni interest taxable via §612(b)(1) add-back

“Interest income on obligations of any state other than this state, or of a political subdivision of any such other state unless created by compact or agreement to which this state is a party, to the extent not properly includible in federal adjusted gross income.”

Note: Verbatim N.Y. Tax Law §612(b)(1). NYC taxable income starts from NY state taxable income (N.Y.C. Admin. Code §11-1712); the §612(b)(1) add-back flows through to NYC income. NYC bonds and NY state bonds are both exempt (not listed in §612(b)(1)).

New York City does not conform to IRC §1400Z-2 QOZ gain deferral and exclusion

“The amount of any gain excluded from federal gross income for the taxable year by subparagraph (A) of paragraph (1) of subsection (a) of section 1400Z-2 of the internal revenue code.”

Note: Verbatim N.Y. Tax Law §612(b)(42). NYC taxable income is computed from NY state taxable income (N.Y.C. Admin. Code §11-1712); the §612(b)(42) QOZ addback flows through to NYC income.

New York City conforms to IRC §1202 QSBS gain exclusion by omission: §612(b) contains no §1202 addback

“New York adjusted gross income of a resident individual means his federal adjusted gross income as defined in the laws of the United States for the taxable year, with the modifications specified in this section.”

Note: Conformity established by negative inference: N.Y. Tax Law §612(a) begins from federal AGI; §612(b) enumerates additions but contains no addition for IRC §1202 QSBS amounts. Federally excluded QSBS gain therefore never enters NYAGI, and carries through to NYC taxable income (N.Y.C. Admin. Code §11-1712). N.Y. Tax Law §612(c)(43) is the QOZ gain-recovery subtraction (mirror of §612(b)(42)), NOT a QSBS provision. Medium confidence: proof-by-omission is not verbatim statutory text.

New York City taxes FNMA and FHLMC bond interest: NYC taxable income follows NY state taxable income (§11-1712); NY Tax Law §612(b) includes no subtraction for FNMA/FHLMC interest, which flows through the NY/NYC base as taxable

“§11-1712: The New York City taxable income of a city resident individual shall be such individual's New York State taxable income, as defined in and computed pursuant to the tax law of the state of New York, subject to the modifications specified in this subchapter.”

Note: NYC taxable income starts from NY state taxable income. NY Tax Law §612(b) has no subtraction for FNMA/FHLMC bond interest (confirmed per NY state analysis: §612(c)(1) allows only interest 'exempt by federal law from state income taxation'; FNMA/FHLMC have no such exemption). The NYC level carries through the same result. Confidence: medium (inherits from NY state confidence level).

New York City income tax: 3.078% to 3.876% on NYC taxable income (same base as NY state; no LT preference)

“For taxable year 2025, the New York City resident tax is imposed on New York City taxable income at the following rates: 3.078% on income to $21,600; 3.762% from $21,601 to $45,000; 3.819% from $45,001 to $90,000; and 3.876% above $90,000, for married individuals filing a joint return.”

Note: NYC brackets are extremely narrow the top rate of 3.876% applies to all income above $90,000 MFJ (essentially flat for any capital-gain-sized income). NYC does NOT provide any preferential LT capital gain rate. Capital gains taxed at same graduated-but-effectively-flat 3.876% rate. The NY state benefit-recapture trap (above $107,650 NYAGI) is separate and in addition to this NYC tax both apply simultaneously. Combined NYC+NYS top: ~14.776%.

U.S. Treasury interest exempt from New York City income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations

“Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.”

Note: 31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.

FHLB and FFCB bond interest exempt from New York City income tax: federal enabling statutes mandate state tax exemption

“Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.”

Note: 12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.

Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation

“The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).”

Note: 12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.

New York City follows NY state UDCPRDA (EPTL §§6-6.1 to 6-6.7): community property character of assets acquired in CP states is preserved at death for NYC residents

“This part may be cited as 'The New York uniform disposition of community property rights at death act.'”

Note: New York State EPTL §§6-6.1 to 6-6.7 applies uniformly throughout New York State including New York City. NYC has no separate marital property law; all five boroughs follow the state UDCPRDA. For NYC residents who moved from a community property state, the CP character of property is preserved at death and IRC §1014(b)(6) double step-up may apply.

New York City income tax: 3.078% to 3.876% on NYC taxable income (same base as NY state; no LT preference)

“For taxable year 2025, the New York City resident tax is imposed on New York City taxable income at the following rates: 3.078% on income to $21,600; 3.762% from $21,601 to $45,000; 3.819% from $45,001 to $90,000; and 3.876% above $90,000, for married individuals filing a joint return.”

Note: NYC brackets are extremely narrow the top rate of 3.876% applies to all income above $90,000 MFJ (essentially flat for any capital-gain-sized income). NYC does NOT provide any preferential LT capital gain rate. Capital gains taxed at same graduated-but-effectively-flat 3.876% rate. The NY state benefit-recapture trap (above $107,650 NYAGI) is separate and in addition to this NYC tax both apply simultaneously. Combined NYC+NYS top: ~14.776%.