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New York at a Glance

New York: Taxation and Social Security

April 15th is the deadline for filing your tax forms with the IRS.

Taxation

Resident New Yorkers pay income tax to the US Internal Revenue Service at the federal level and to the New York State Department of Taxation and Finance. The United States pursues a low taxation policy. The amount of federal income tax which foreign workers have to pay depends on their residency status and income.

Resident aliens are usually taxed like US citizens, while non-resident aliens only need to declare their income from US sources. For more information on international taxpayer regulations, please consult the Internal Revenue Service´s website. People who continue to pay tax in their country of origin can be exempted from paying federal income tax if their country has a double taxation agreement with the US.

However, such agreements only prevent double taxation on a federal level and don´t affect state income tax payments. New York State tax tables and rates, including the New York City Resident Tax, are available on the website of the Department of Taxation and Finance.

Social Security and Pensions

Social security in the US covers Old Age, Survivors and Disability Insurance. Employee and employer each contribute 6.2% of the employee´s income to social security, and 1.45% to Medicare. Everyone who has reached the age of 67 and has been paying US social security contributions for more than five years is eligible for Retirement Benefits.

However, state pension usually amounts to only a small share of an employee´s final income. It is therefore not sufficient to keep up the previous standard of living. Most people either pay into a company pension fund or make additional Individual Retirement Arrangements, for which they can receive government support.

If you are planning to retire in New York or other parts of the country, you should consult an accountant to learn about these additional arrangements.

Social Security for Expats

Expats who will be working in New York for a limited period of time only should check the pay-out or transfer options of the abovementioned funds before signing up. Under certain circumstances, it is also possible for some temporary residents to be exempt from social security contributions altogether.

Citizens of Australia, Austria, Belgium, Canada, Chile, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, Luxembourg, the Netherlands, Norway, Poland, Portugal, South Korea, Spain, Sweden, Switzerland, and the United Kingdom should refer to their country´s individual social security agreement with the United States for more information.

These agreements regulate which social security contributions you have to make during your time in New York.

Every New York resident needs a Social Security Number & Card for taxation, social security and other government purposes. Immigrants can request theirs at the time of applying for a visa. Non-immigrants can use the online application service of the US Social Security Agency once they are in New York.