Tax Planning for Physicians in Yonkers, NY (2026)

Yonkers is the only New York city outside the five boroughs with its own income tax, and it works differently from the New York City tax. Instead of its own rate schedule, Yonkers adds a surcharge based on your New York State tax.

2026 at a glance

Why the surcharge changes the math

Because the Yonkers resident tax is a percentage of your state tax, every dollar of New York State tax you save also reduces your Yonkers tax. A strategy that cuts $10,000 of state tax saves about another $1,675 of Yonkers tax.

Planning priorities

• Elect the New York State pass-through entity tax if you own a practice, which can reduce both your federal and your Yonkers liability.
• Physicians who work at Yonkers hospitals but live elsewhere owe the 0.5% nonresident earnings tax on Yonkers wages.
• Pre-tax retirement contributions reduce state tax and therefore the surcharge.

See the full New York physician tax guide.

More physician tax guides

• Other New York cities: New York City, Buffalo, Rochester, Albany, Long Island.
• State rules: New York physician tax guide and all 50 state guides.
• By specialty: Radiologists, Dermatologists, Neurosurgeons, Pain Management Physicians and every specialty.
• Core strategy: tax planning for physicians, tax planning for medical practice owners, advanced strategies for high-income physicians and S corporation tax planning for physicians, plus the physician tax glossary.

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.