RateHerald

No link on RateHerald pays us today. When some do, they'll say so, and they'll never change a ranking. How we make money

New York After-Tax Yield Calculator

What a savings account or CD keeps after New York's income tax (3.9% to 10.9% in 2026) and federal tax, and whether a Treasury bill, which New York can't tax, keeps more.

In New York, a 4.5% APY keeps 3.27% after 22% federal and 5.4% state tax. A 4% Treasury bill, which New York can't tax, keeps 3.12%, so the savings account keeps 0.15% more.

Savings keeps, after tax
3.27%
Treasury bill keeps, after tax
3.12%
Better after tax
Savings or CD
Treasury yield that matches the APY
4.19%

New York income tax brackets, 2026 (taxable income)

RateSingle filersMarried filing jointly
3.90%$0 to $8,500$0 to $17,150
4.40%$8,500 to $11,700$17,150 to $23,600
5.15%$11,700 to $13,900$23,600 to $27,900
5.40%$13,900 to $80,650$27,900 to $161,550
5.90%$80,650 to $215,400$161,550 to $323,200
6.85%$215,400 to $1,077,550$323,200 to $2,155,350
9.65%$1,077,550 to $5,000,000$2,155,350 to $5,000,000
10.30%$5,000,000 to $25,000,000$5,000,000 to $25,000,000
10.90%Over $25,000,000Over $25,000,000

What a 4.50% APY keeps in New York, by state bracket (22% federal bracket)

New York rateSavings or CD keepsT-bill yield that matches it
3.90%3.33%4.27%
4.40%3.31%4.25%
5.15%3.28%4.20%
5.40%3.27%4.19%
5.90%3.24%4.16%
6.85%3.20%4.10%
9.65%3.08%3.94%
10.30%3.05%3.91%
10.90%3.02%3.87%

How this calculator works

Bank interest (savings, money market and CDs) is ordinary income to New York and to the IRS. After-tax yield = APY × (1 − federal rate − New York rate − local rate).

Treasury bills, notes and bonds are taxed only federally: federal law bars states from taxing their interest (31 U.S.C. 3124). After-tax yield = T-bill yield × (1 − federal rate).

The New York rates are its 2026 brackets as compiled by the Tax Foundation from state law. Choose the bracket your taxable income falls in; the calculator starts at the rate for a single filer with $75,000 of taxable income (5.40%).

What it assumes

  • Your marginal rates apply to all of the interest.
  • Some New York cities, counties or school districts tax income as well (on average 1.60% of income where they do). Enter yours as local income tax if it reaches interest.
  • It ignores the state tax deduction on your federal return, which matters only if you itemise and are under the SALT cap.

Questions people ask

Does New York tax interest from savings accounts and CDs?

Yes. New York taxes bank interest as ordinary income at 3.9% to 10.9% in 2026, on top of federal income tax.

Are Treasury bills taxable in New York?

No. Interest on Treasury bills, notes, bonds and US savings bonds is exempt from New York income tax by federal law. It is still taxed federally.

Is a T-bill or a CD better in New York?

At New York's 5.40% rate and a 22% federal bracket, a 4.50% CD keeps 3.27%, the same as a T-bill yielding 4.19%. A T-bill paying more than that keeps more.

Do Treasury money market funds avoid New York tax?

New York exempts the Treasury share of a fund's dividends only when at least half the fund's assets are US government obligations at each quarter's end; Treasury-only money market funds usually qualify.

Do New York City residents pay city tax on interest?

Yes. New York City's personal income tax applies to residents' interest income as well as wages, so add the city rate as local income tax. Treasury interest is exempt from it too.

Other states

Terms explained

Related calculators

  • After-Tax Yield CalculatorWhat a savings or CD rate keeps after federal and state income tax, and whether a Treasury bill, which is free of state tax, keeps more.
  • Savings CalculatorWhat a savings account grows to at an APY, with a deposit every month, year by year.
  • CD CalculatorWhat a certificate of deposit earns by maturity, and what you keep if you close it early and pay the penalty.

Sources

Updated by the RateHerald team. The maths is tested against worked examples; report a problem.