Tax Guide, State Taxes
New York State Residency Rules 

Understanding your New York residency status is essential for filing your state tax return correctly. New York classifies taxpayers as residents, nonresidents, or part-year residents, and each category is taxed differently.

Nonresident

You are a New York State nonresident if you were not a resident of New York State for any part of the year. 

Undergraduate Students:
A residence maintained by a full‑time undergraduate student—such as a dorm or student housing—is not considered a permanent place of abode. This means a student who lived in New York for the entire year may still file as a nonresident if New York was not their domicile.

NY Nonresident Income Allocation Worksheet: If you lived outside New York (e.g., NJ, CT) and worked for a New York employer, you pay New York tax only on income earned while physically working in New York. If your employer required you to work outside New York for business reasons, those days are not taxable by New York. You may owe tax to the state where you performed that work.  Please complete my worksheet if your employer did not accurately allocate the state income on your W-2.

Resident

You are a New York State resident if either of the following applies:

1. Statutory Residency

You are a statutory resident if you:

• Maintain a permanent place of abode in New York for substantially all of the year, and

• Spend 184 days or more in New York during the year (any part of a day counts as a full day).

There are limited exceptions for active‑duty military members.

2. Domicile

You are a resident if New York is your domicile—your true, fixed, and permanent home.

However, even if New York is your domicile, you are not considered a resident if you meet all conditions in Group A or Group B:

Group A (No Permanent Place of Abode in NY)

1. You did not maintain a permanent place of abode in New York during the year.

2. You maintained a permanent place of abode outside New York for the entire year.

3. You spent 30 days or less (any part of a day is a day for this purpose) in New York during the year.

Group B (Foreign Country Exception)

1. You were in a foreign country for at least 450 days (any part of a day is a day for this purpose) during any period of 548 consecutive days.

2. You, your spouse (unless legally separated), and minor children spent 90 days or less (any part of a day is a day for this purpose) in New York during that 548‑day period.

3. During the portions of the tax years in which the 548‑day period begins and ends, your days in New York do not exceed the prorated limit:

Number of days in the                  Maximum number     
nonresident portion        × 90   =  of days allowed
548                                            in New York State

Key Definitions

Domicile

Your permanent home—the place you intend to return to.

Individuals in the U.S. on temporary visas are generally domiciled in their home country.

You can have only one domicile.

Permanent Place of Abode

A residence that:

• Is suitable for year‑round living,

• Is maintained by you (owned or rented), and

• Is available for your use.

A residence maintained by your spouse typically counts as your permanent place of abode.

Part‑Year Resident

You are a part‑year resident if you were a resident for only part of the year and a nonresident for the remainder. This usually occurs when you move into or out of New York.

Tax Differences: Resident vs. Nonresident

Residents

• Pay New York State tax on all income, regardless of where it is earned.

• Pay New York City tax if they are NYC residents.

Nonresidents

• Pay New York State tax only on New York‑source income, such as:

  • Wages earned while physically working in New York

  • Income from New York real estate

• Do not pay New York City tax.

Because NYC tax is withheld only for NYC residents, someone incorrectly treated as a resident may receive a large refund if they properly file as a nonresident.

Telecommuter Rules (Convenience‑of‑the‑Employer)

• New York taxes remote work performed outside NY if the work is done for your own convenience rather than because your employer requires it.

• Days worked outside NY count as NY‑taxable unless you can show they were performed outside the state out of employer necessity.

• Employer necessity means the employer had a business‑driven reason you had to work outside NY (e.g., required equipment, client location, office closure).

• Employee convenience includes working from home for personal preference, comfort, reduced commute, or flexibility—these days remain NY‑taxable.

• Hybrid workers: If you live in another state but work partly in NY, only days physically in NY are automatically taxable; days outside NY depend on the convenience rule.

• Home office exception: A home office may qualify as an employer‑required work location only if it meets strict criteria (e.g., essential to the employer’s business, not just a workspace of convenience).

• W‑2 withholding may be incorrect if your employer treated convenience days as NY days or vice versa—allocation may need to be corrected on your return.

• Other states may also tax the same income, so proper allocation helps avoid double taxation and ensures correct credits.