Work & Income · State Guide

Salary vs contractor in New York

How New York's tax environment affects the W2 vs 1099 comparison.

New York tax context

New York State income tax reaches 10.9% at the highest bracket. NYC residents pay an additional city income tax (3.08-3.876%). Both W2 and contractors pay the same state/city rates — the contractor disadvantage comes from federal SE tax and lost benefits. NYC's high cost of living also affects how much health insurance and other benefits are worth there.

Run the comparison with New York tax rates

Use 6.85% as your state income tax rate in the calculator.

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