Before you start

An SSN or ITIN
Form W-4 with your employer for federal withholding
Form IT-2104 with your employer for New York State withholding
Records of foreign income and foreign financial accounts
A STAR registration with the state, if you buy a home

Step-by-step

1
Complete the W-4 and New York's IT-2104 on day one
New York has its own withholding allowance certificate separate from the federal W-4, and its allowance rules differ enough that copying your federal figures across produces the wrong withholding. The form asks specifically whether you are a New York City or Yonkers resident — in Albany the answer is no to both, and that is the whole local tax question settled.
Via employerWho: YouFirst week of employment
2
Determine your US tax residency
The substantial presence test counts weighted days over three years to decide whether the US taxes your worldwide income or only US-source income. Your visa category does not decide this.
OnlineWho: You
3
Check for an applicable tax treaty
The US has treaties with around 70 countries that can reduce or exempt tax on particular income. New York begins from federal adjusted gross income, so a federal treaty exclusion generally carries through to the state return, but New York does not conform to every federal provision — check rather than assume.
OnlineWho: You
4
File federal and New York returns by 15 April
The tax year is the calendar year and both returns are due on the same date. New York's return is form IT-201 for residents, and it starts from your federal adjusted gross income.
OnlineWho: YouBy 15 April annually
5
Register for the STAR credit as soon as you buy
New York's School Tax Relief programme reduces the school portion of a homeowner's property tax, and the state's own guidance is to register as soon as the home becomes your primary residence. For most new owners it arrives as a credit from the state rather than as an automatic reduction on the bill, and it is registered with the Department of Taxation and Finance — not with the city, and not by your closing attorney. Enhanced STAR for qualifying older owners is worth considerably more.
OnlineWho: YouAs soon as you buy
6
File an FBAR if foreign accounts exceed $10,000
Aggregate foreign account balances over $10,000 at any point in the year trigger a FinCEN filing, separate from and additional to your tax return.
OnlineWho: You

Documents you’ll need

Form W-2 from each employer, issued by 31 January
Form 1099s for freelance, interest and investment income
Form IT-2104, filed with your employer for New York withholding
Passport and travel history for the substantial presence day count
STAR registration confirmation, if you own
Foreign account statements for FBAR reporting

Things most newcomers don’t know

The 'New York income tax' everyone warns you about is mostly the New York CITY tax, and Albany does not have it.

New York State's Department of Taxation and Finance publishes local income tax rate schedules for exactly two places: New York City and Yonkers. Nowhere else in the state levies a resident income tax, Albany and Albany County included. Someone weighing an Albany salary against a Manhattan one and applying a single 'New York tax' number is off by several percentage points of income — and in a capital where a lot of people move from or to New York City, it is the comparison made most often and got wrong most often.

Source: New York State Department of Taxation and Finance

Albany County's sales tax is 8%, which is at the low end for this state.

The state rate is 4% and Albany County adds 4%. Erie County reaches 8.75% and New York City 8.875%. On a large purchase the gap is real, and it is the one line of the New York tax picture that is friendlier here than downstate rather than merely equal.

Source: NY Tax Department — sales tax rates by jurisdiction (Publication 718)

STAR is worth real money and it is opt-in for new buyers.

The School Tax Relief programme reduces the school-tax component of a property tax bill, and for most new homeowners it now arrives as a credit that must be registered for with New York State. Nobody at the closing table does it for you, and people lose a year of it routinely. Enhanced STAR, for qualifying owners aged 65 and over within an income limit, is worth substantially more again.

Source: NY Tax Department — register for the STAR credit

Property tax is where New York actually takes it upstate.

Albany's income tax picture is friendlier than its reputation, but the combined city, county and school property tax burden is high by national standards — and a capital city whose centre is occupied by state government buildings, hospitals and universities that pay no property tax has a narrower base to levy on than its size suggests. When you compare an Albany house price against one in a Sun Belt city, run the annual property tax alongside the purchase price, because the ratio between the two is very different here.

Source: New York State Department of Taxation and Finance

Common mistakes to avoid

Applying New York City's income tax rate to an Albany salary comparison.
Copying federal W-4 allowances onto the IT-2104 and under-withholding for the state.
Buying a house and never registering for the STAR credit.
Comparing house prices with a Sun Belt city without running the annual property tax alongside.
Assuming your visa type settles your tax residency.
Missing the FBAR because a home-country account did not feel 'foreign'.

Some of this may be out of date. Spotted something inaccurate? Help us keep it right for the next newcomer.