IRS representation in Yonkers, Westchester

This is the detail that makes Yonkers different from everywhere else we work. Residents pay a Yonkers income tax surcharge of 16.75% of the net state tax amount. People who work in Yonkers but live elsewhere pay a nonresident earnings tax of 0.50%, filed on Form Y-203. No other area we cover outside New York City has a municipal income tax at all; Scarsdale, four miles away, has none.

What you do not pay is just as important. There is no New York City resident income tax for Yonkers residents, including the large commuter population. The nonresident earnings tax that used to apply was repealed in 1999 and the partial version was struck down in 2000. MCTMT sits in Zone 2 at 0.34% rather than the city’s 0.60%, and with the self employment threshold moving from $50,000 to $150,000 for 2026, a lot of self employed Yonkers filers leave that tax entirely this year.

The combination worth understanding: a Yonkers resident consultant with New York City clients can face state tax, the 16.75% Yonkers surcharge and New York City Unincorporated Business Tax on the city sourced business, while owing no New York City resident tax. All three can be true at once, and almost nobody explains it.

With a substantial two to four family and apartment stock and a majority renting, small landlord Schedule E work is common here, and unlike Brooklyn there is no UBT to think about. Proximity to Connecticut and New Jersey makes multi state filing and the resident credit on Form IT-112-R routine.