Key fact: Long Island residents are NY State residents, so they pay NY State income tax. However, they are NOT NYC residents and do NOT pay the NYC local income tax — saving up to 3.876% annually.
After-Tax Pay Comparison at a Glance
The table below compares what an NYC resident takes home versus a non-resident working the same job at the same salary — the only difference is where you sleep at night.
| Salary | NYC Resident Net | Non-Resident Net | Annual Savings | Net After Nassau / Suffolk County (NY) Tax |
|---|---|---|---|---|
| $50,000 | $38,679 | $40,187 | +$1,508 | $40,187 |
| $75,000 | $55,187 | $57,659 | +$2,472 | $57,659 |
| $100,000 | $70,343 | $73,784 | +$3,441 | $73,784 |
| $125,000 | $85,366 | $89,776 | +$4,410 | $89,776 |
| $150,000 | $100,022 | $105,401 | +$5,379 | $105,401 |
| $200,000 | $130,694 | $138,011 | +$7,317 | $138,011 |
* "Net After Nassau / Suffolk County (NY) Tax" applies an estimated home-state tax credit against NY taxes already paid. Individual results vary — consult a tax professional.
How the Taxes Work
Nassau and Suffolk County residents working in Manhattan represent one of the largest commuter flows in the US. Living on Long Island means NY State taxes but no NYC local surcharge.
Long Island residents are NY State residents, so they pay NY State income tax. However, they are NOT NYC residents and do NOT pay the NYC local income tax — saving up to 3.876% annually.
The critical distinction is NYC residency. New York City imposes a local income tax ranging from 3.078% to 3.876% on city residents. This tax does not apply to people who merely work in NYC — it applies only to those who live there. As a result, any commuter living outside the five boroughs is automatically exempt, regardless of how many hours they spend in a Manhattan office.
What You Owe: Tax Breakdown at $100,000
Here is how the actual tax math looks for two workers earning $100,000 — one living in NYC, one commuting from outside the city.
NYC Resident at $100,000
Non-Resident at $100,000
The non-resident saves $3,441/year at $100,000 simply by not being an NYC resident — that is the NYC local income tax that residents pay and non-residents do not.
Frequently Asked Questions
Do Long Island residents pay NYC income tax?
No. NYC's local income tax applies only to people who reside within the five boroughs. Nassau and Suffolk County residents are exempt from the NYC local tax.
Is there a Long Island commuter tax?
There is no separate Long Island commuter income tax. However, the MTA Payroll Tax applies to most employers in the metro area regardless of where employees live.
How much do I save by living on Long Island vs NYC?
At $100,000 salary, living on Long Island vs NYC saves roughly $3,500–$3,800/year in NYC local income tax. At $200,000, the savings grow to $7,500+.
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