New York stock-comp tax reference
Top marginal rate, supplemental withholding, AMT status, and capital-gains treatment for RSU, ESPP, and ISO income earned by New York residents.
Tax year 2026 · Last updated May 10, 2026
Top marginal income tax rate
10.9%
Supplemental withholding rate
10.23%
State personal AMT (impacts ISO)
No
LTCG treatment
Taxed as ordinary income
How it works
Note: New York supplemental withholding rate is 11.7% for high earners (NYS Pub NYS-50). NYC residents pay an additional NYC personal income tax of up to ~3.876% on top of state.
RSU vests
RSU vests are W-2 supplemental wages in New York, withheld at the state supplemental rate (10.23%). Reconciled at filing against your actual marginal rate — same shortfall mechanics as federal.
ESPP qualifying dispositions
New York taxes both the ordinary-income piece (the §423(c) discount) and the long-term capital gain at ordinary rates. Federal qualifying-disposition rules still split the gain into ordinary income and LTCG; state treatment is layered on top.
ISO exercises
New York does NOT have a personal AMT for ISO exercises. Bargain element is not taxed at the state level on exercise (assuming you don't disqualify-sell). On a qualifying sale, the long-term gain is taxed at ordinary rates.
Frequently asked questions
Does New York have a state income tax on RSU vests?
Yes. New York's top marginal rate is 10.9%. RSU vests are W-2 wages and follow normal state withholding + reconciliation.
What supplemental withholding rate does New York use for RSUs and bonuses?
New York uses a published supplemental rate of 10.23%.
Does New York have a state AMT for ISO exercises?
New York does not impose a personal AMT, so an ISO exercise typically does not trigger a state-level AMT bill (only federal AMT applies).
How does New York tax long-term capital gains?
New York taxes long-term capital gains at the same rates as ordinary income — no preferential LTCG rate.
Where is this information sourced?
Top marginal rates are from the Tax Foundation 2025 state individual income tax brackets summary. State supplemental rates are from the published guidance of each state's revenue department (linked above). Personal AMT status reflects 2025 legislation. Always confirm current-year rules with the New York State Department of Taxation and Finance before making decisions.
Is this tax advice?
No. This is a planning reference — state tax law changes frequently and varies by individual situation. Talk to a CPA licensed in New York for advice on a real transaction.