Tax Planning for Physicians in New York (2026)
Physicians in New York face a top rate of 10.9% on top of the 37% federal bracket and payroll taxes. This guide summarizes the 2026 New York rules that matter most to doctors, dentists and practice owners.
New York income tax rates for 2026
New York's top 2026 rate is 10.9%. Brackets apply to state taxable income.
Single
| Rate | Taxable income |
|---|---|
| 3.9% | $0 to $8,500 |
| 4.4% | $8,500 to $11,700 |
| 5.15% | $11,700 to $13,900 |
| 5.4% | $13,900 to $80,650 |
| 5.9% | $80,650 to $215,400 |
| 6.85% | $215,400 to $1,077,550 |
| 9.65% | $1,077,550 to $5,000,000 |
| 10.3% | $5,000,000 to $25,000,000 |
| 10.9% | Over $25,000,000 |
Married filing jointly
| Rate | Taxable income |
|---|---|
| 3.9% | $0 to $17,150 |
| 4.4% | $17,150 to $23,600 |
| 5.15% | $23,600 to $27,900 |
| 5.4% | $27,900 to $161,550 |
| 5.9% | $161,550 to $323,200 |
| 6.85% | $323,200 to $2,155,350 |
| 9.65% | $2,155,350 to $5,000,000 |
| 10.3% | $5,000,000 to $25,000,000 |
| 10.9% | Over $25,000,000 |
Pass-through entity tax (SALT workaround)
Yes. The state has an elective pass-through entity tax (PTET) that partnerships and S corporations can use to deduct state income tax at the entity level.
For physician practice owners, the PTET matters more in 2026 because the federal SALT deduction for individuals phases back down toward $10,000 once modified AGI passes $505,000. Read our guide to the pass-through entity tax for physicians.
Local income taxes
New York City residents pay city income tax of 3.078% to 3.876%; Yonkers residents pay a surcharge of 16.75% of their net state tax, and nonresidents who work in Yonkers pay 0.5% of earnings. Self-employed physicians in the Metropolitan Commuter Transportation District may also owe the MCTMT.
Planning notes for New York physicians
- New York's top rate is 10.9% (on income over $25 million; rates of 9.65% to 10.3% apply above about $1.08 million), and New York City residents add up to 3.876%, so the combined top state and city rate for NYC residents is about 14.8%.
- New York has both a state pass-through entity tax and a separate New York City pass-through entity tax that partnerships and S corporations can elect.
- New York taxes nonresidents on income from work performed in the state, so commuting physicians from New Jersey or Connecticut still file New York returns.
Federal strategies that apply in every state
State tax is only part of the picture. The federal rules drive most of the savings for physicians in New York:
- W-2 physician tax strategies: maximize 401(k)/403(b), 457(b), HSA and the backdoor Roth.
- 1099 physician tax planning: solo 401(k), deductions and the S corporation decision.
- Practice owners: entity, compensation, cash balance plans and exit planning.
- Real estate and cost segregation for physicians with time to participate.
City guides for New York physicians
Local taxes and planning notes for physicians in New York City, Yonkers, Buffalo, Rochester, Albany, Long Island. Our planning is delivered virtually, so location does not limit access.
Guides by specialty
Surgeons · Anesthesiologists · Radiologists · Orthopedic Surgeons · Cardiologists · Dentists · Dermatologists · Emergency Physicians · Gastroenterologists · Ophthalmologists · Neurosurgeons · Plastic Surgeons · Psychiatrists · Hospitalists · Pain Management Physicians
Frequently asked questions
What is the New York state income tax rate for physicians in 2026?
New York has a top rate of 10.9% for 2026. Your effective state rate depends on deductions and filing status.
Does New York have a pass-through entity tax?
Yes. The state has an elective pass-through entity tax (PTET) that partnerships and S corporations can use to deduct state income tax at the entity level.
Can GenWealth 360 help physicians in New York?
Yes. GenWealth 360 provides tax planning for physicians, dentists and practice owners in all 50 states, including New York, through virtual meetings.
Get a tax plan built for your situation
GenWealth 360 builds proactive, tax-first plans for physicians, dentists and medical practice owners in all 50 states. Start with a conversation about your income, entity and goals.
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Sources
- Tax Foundation: state individual income tax rates, 2026
- Tax Foundation: 2026 state tax changes
- AICPA: state pass-through entity tax map
- IRS Notice 2020-75 (entity-level state taxes)
- IRS: 2026 inflation adjustments (IR-2025-103)
- Charles Schwab: the SALT deduction
- New York State Department of Taxation and Finance: NYC and Yonkers residents
- New York State withholding tax rates
This article is for general educational purposes and is not tax, legal or investment advice. Tax law changes often and its application depends on your facts. Figures reflect 2026 rules as published by the sources listed above. Consult a qualified professional before acting. See our editorial policy.