Are You a Resident of New York City If You Live in Long Island?

Living in Long Island but working or spending time in New York City can make residency status confusing. Many assume proximity to the city means they are considered NYC residents, but that is not necessarily the case. Residency has legal and tax implications that affect income taxes, local surcharges, and eligibility for certain benefits.

Legal Definition of NYC Residency

New York City residency is determined by legal criteria outlined in New York State Tax Law and the NYC Department of Finance. Residency status affects tax obligations, eligibility for city programs, and legal responsibilities. A person is classified as a resident for tax purposes through either domicile or statutory residency.

Domicile refers to a person’s permanent and primary home. If someone considers NYC their true home—the place they return to after traveling and where they maintain significant personal and financial ties—they are domiciled in the city. Changing domicile requires clear evidence, such as selling a primary residence in NYC, establishing a new permanent home elsewhere, and severing substantial connections to the city. Tax authorities examine voter registration, driver’s license address, and the location of family and social ties when determining domicile.

Statutory residency applies to individuals who are not domiciled in NYC but spend more than 183 days in the city and maintain a permanent place of abode there. This rule prevents individuals from avoiding city taxes while still benefiting from city services. Even brief visits count toward the 183-day threshold, and tax audits often rely on credit card statements, phone records, and MetroCard usage to verify presence.

Household Location and Primary Abode Criteria

Where a person physically resides plays a significant role in determining NYC residency. Living in Long Island, even if commuting daily to Manhattan, does not automatically make someone a city resident. The distinction hinges on where a person maintains their primary abode—the place they regularly live and have the strongest residential ties.

A primary abode must be more than just a mailing address or a temporary stay. Tax authorities assess whether a dwelling is suitable for year-round use and whether the individual has unrestricted access to it. For example, owning or leasing an apartment in Queens but spending most nights at a home in Nassau County suggests that the Long Island residence is the true primary abode. On the other hand, if someone keeps a fully furnished apartment in Brooklyn, regularly stays there, and has personal belongings that indicate long-term habitation, it strengthens the case for NYC residency.

The nature of housing arrangements also matters. A person staying at a relative’s home in the city without a formal lease or financial responsibility for the property may not meet the criteria of maintaining a primary abode. Similarly, a pied-à-terre used only for occasional overnight stays is unlikely to be classified as a primary residence unless there is substantial evidence of regular use. Courts and tax auditors examine utility bills, internet usage, and grocery purchases to establish whether a dwelling is genuinely lived in.

Differences in City and Non-City Taxes

New York City imposes its own income tax in addition to state and federal taxes. Unlike state income tax, which applies to all New York residents, NYC’s personal income tax only applies to individuals who meet the city’s residency requirements. This tax is progressive, with rates ranging from 3.078% to 3.876% in 2024, depending on taxable income. Residents of Long Island, which falls outside the city’s jurisdiction, are not subject to this additional tax, resulting in lower overall tax liabilities for individuals living in Nassau or Suffolk County.

NYC residents cannot opt out of city taxation even if they work elsewhere, whereas non-city residents who work in the five boroughs only pay New York State income tax. This distinction is particularly relevant for high earners, as the combined state and city tax burden can exceed 14% for top-income brackets. A Long Island resident earning the same salary as an NYC resident takes home more pay after taxes due to the absence of the city’s income tax.

Property tax structures also differ between the city and surrounding areas. While NYC’s property tax rates are relatively low compared to national averages, the assessed values and classifications create disparities. Homeowners in Nassau and Suffolk counties generally face higher property tax bills because Long Island municipalities rely more heavily on property taxes to fund local services. For example, a homeowner in Nassau County with a property assessed at $500,000 might pay upwards of $10,000 annually, whereas an NYC homeowner with a similarly valued property could owe significantly less due to the city’s tax structure. This difference often influences homeownership decisions, as some individuals opt for higher property taxes in Long Island to avoid the recurring burden of NYC income tax.

City Surcharges and Local Levies

New York City imposes various surcharges and local levies beyond standard income and property taxes, affecting both individuals and businesses operating within the five boroughs. One such cost is the Unincorporated Business Tax (UBT), which applies to sole proprietors and partnerships earning income from business activities in the city. Unlike traditional corporate taxes, the UBT is levied at a rate of 4% on net income, regardless of the owner’s residency. This means a Long Island-based consultant with clients in Manhattan may still owe UBT even if they live outside city limits.

For commuters, the Metropolitan Commuter Transportation Mobility Tax (MCTMT) is another consideration. This payroll tax applies to employers and self-employed individuals conducting business in the Metropolitan Commuter Transportation District (MCTD), which includes NYC and surrounding counties. Businesses with payroll expenses exceeding $312,500 per quarter are subject to rates ranging from 0.11% to 0.34%. While this tax primarily funds the Metropolitan Transportation Authority (MTA), it indirectly impacts non-residents who work in the city by increasing employer costs, which could influence job location decisions or salary negotiations.