New York City, New York
New York City employer costs: minimum wage, taxes and paid leave
New York City has a higher minimum wage than the rest of the state and the MCTMT employer payroll tax. The minimum wage is $17 an hour from Jan 1, 2027. A $50,000 employee costs a new employer about $64,247 a year here in 2026.
Calculate the cost of an employee in New York City
Estimates for planning, not tax or legal advice. Rates change and some depend on your business; confirm yours with your state agencies, insurer or payroll provider.
New York City employer rules on top of New York's
What New York City adds, then the federal and New York lines every employer here pays. The full New York breakdown is on the state page.
- New York City minimum wage
$17 in 2026, $17 in 2027
$17 an hour; $17 from Jan 1, 2027 (No increase on January 1, 2027).
per New York State Department of Labor, as of Jan 1, 2026; per Office of the Governor of New York, as of Jan 1, 2027
- Metropolitan Commuter Transportation Mobility Tax (MCTMT)
0.055%–0.895% of payroll
Employers with more than $312,500 of quarterly payroll in the commuter district pay a tax on New York City payroll whose rate depends on that quarterly payroll: 0.055% up to $375,000, 0.115% up to $437,500, 0.60% up to $2,500,000 and 0.895% above.
per New York State Department of Taxation and Finance, as of Jul 1, 2025
- Social Security and Medicare
7.65% of pay
The employer matches the employee: 6.2% Social Security on pay up to $184,500 in 2026 ($192,300 in 2027) and 1.45% Medicare on all pay.
per Social Security Administration, as of Jan 1, 2026
- Federal unemployment tax (FUTA)
$42 per employee
6% of the first $7,000 of each employee's pay, less the 5.4% credit for paying New York unemployment tax on time.
per Internal Revenue Service, as of Jan 1, 2026
- New York unemployment insurance (SUTA)
4.025% of $17,600
New employers pay 4.025% on the first $17,600 of each employee's pay in 2026. After two to three years the rate follows your own claims history.
per U.S. Department of Labor, Employment and Training Administration, as of Jan 1, 2026
Checked against each source on Oct 23, 2026.
Two worked examples in New York City
Both for a new employer with 10 employees in a general industry in 2026, with single health coverage at the state average.
Salaried employee at $50,000
A $50,000 salary, 40 hours a week.
| Pay for hours worked2,040 hours | $49,038 |
|---|---|
| Paid sick leave required by law40 hours | $962 |
| Social Security (employer share)6.2% of $50,000 | $3,100 |
| Medicare (employer share)1.45% of $50,000 | $725 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)4.025% of $17,600 | $708 |
| Workers' compensation (state index rate)$1.98 per $100 of payroll | $990 |
| Health insurance (single coverage, state average)average employer contribution | $8,682 |
| Total cost a year | $64,247 |
28.5% on top of pay · $31.49 per hour worked
Hourly employee at $18 an hour
$18 an hour for 40 hours a week, 52 weeks.
| Pay for hours worked2,040 hours | $36,720 |
|---|---|
| Paid sick leave required by law40 hours | $720 |
| Social Security (employer share)6.2% of $37,440 | $2,321 |
| Medicare (employer share)1.45% of $37,440 | $543 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)4.025% of $17,600 | $708 |
| Workers' compensation (state index rate)$1.98 per $100 of payroll | $741 |
| Health insurance (single coverage, state average)average employer contribution | $8,682 |
| Total cost a year | $50,478 |
34.8% on top of pay · $24.74 per hour worked
What changes in 2027
- New York City's minimum wage becomes $17 an hour on Jan 1, 2027 (No increase on January 1, 2027). per Office of the Governor of New York, as of Jan 1, 2027
- The Social Security wage base rises from $184,500 to $192,300: up to $484 more employer tax for employees paid above it. per Social Security Administration, as of Jan 1, 2027
- New York's minimum wage stays $16 an hour on January 1, 2027 (Rest of the state; $17.00 in New York City, Long Island and Westchester. No increase on January 1, 2027). per Office of the Governor of New York, as of Jan 1, 2027
Only changes already official on Oct 23, 2026. Most states publish next year's unemployment insurance rates in November and December; this page is updated when they do.
Frequently asked questions
What is the New York City minimum wage in 2027?
$17 an hour from Jan 1, 2027 (No increase on January 1, 2027), up from $17: $35,360 for a full-time year in New York City.
What is the minimum wage in New York City in 2026?
$17 an hour in New York City, or $1 above New York's $16.
How much does an employee cost in New York City?
$64,247 a year for a $50,000 employee in New York City (new employer, 10 staff), 28.5% above pay.
What payroll taxes do employers pay in New York City?
Metropolitan Commuter Transportation Mobility Tax (MCTMT) on top of $4,575 of federal and New York payroll taxes on a $50,000 salary.
Is paid sick leave required in New York City?
Yes, under New York's rule: 56 paid hours a year for a full-time New York City employee at 100 staff.
What does a minimum-wage employee cost in New York City?
$48,198 a year at $17 an hour full time in New York City: $23.63 per hour worked.
Who pays the MCTMT in New York City?
Employers with more than $312,500 of quarterly payroll in the commuter district pay a tax on New York City payroll whose rate depends on that quarterly payroll: 0.055% up to $375,000, 0.115% up to $437,500, 0.60% up to $2,500,000 and 0.895% above. An employer with 100 employees paid $80,000 each has $2,000,000 of quarterly payroll, so it pays 0.60%: $480 a year per employee.
More employer cost pages
New York
Other cities with their own rules
Software and services for these costs
- Payroll Software
Calculates and files these payroll taxes for every state you hire in.
- PEO Services
Takes on payroll taxes, workers' comp and benefits, often at group rates.
- Benefits Administration
Runs the health plan and leave programs behind the benefits lines.
Benefits and workers’ comp are most of this cost
A PEO pools employers for health insurance and workers’ comp, often at group rates. Compare PEOs we research, with verified prices and features.