Japanese residents moving to the U.S. often ask whether America has anything like juminzei, Japan’s resident tax. Juminzei is a local tax levied by the city and prefecture where you live on January 1, based on the previous year’s income. The U.S. has no tax with the same name or design, but two taxes fill a similar role: state income tax and, in some places, a local income tax charged by a city, county or school district.
This article explains how state and local income taxes fit together, then focuses on New York City, where many Japanese expats live: who counts as an NYC resident, the current rates, part-year moves, commuters who live outside the city, the Yonkers taxes, and a short list of other localities with income taxes, based on official state and city sources.
The timing gap between Japan’s resident tax and U.S. state tax (Japan taxes last year’s income the following year; the U.S. collects during the year through withholding) is covered in our separate article, When is Residence Tax Paid?. Here we focus on which local taxes apply depending on where you live.
The short answer
- The U.S. has no direct equivalent of juminzei. The closest are state income taxes and the local income taxes that exist only in some areas.
- NYC residents pay NYC income tax on top of New York State tax. For 2025 the rates run from 3.078% to 3.876% in four brackets, calculated on the New York State return (Form IT-201).
- People who do not live in NYC owe no NYC income tax, even if they work there. New York State nonresident tax is a separate matter.
- Yonkers residents pay a surcharge equal to 16.75% of their net New York State tax; nonresidents who earn wages in Yonkers pay a 0.5% nonresident earnings tax.
- Outside New York, local income taxes exist in places such as Maryland’s counties, Philadelphia, Ohio cities and school districts, Detroit, and Kansas City.
Japan’s resident tax vs. U.S. state and local taxes
According to Japan’s Ministry of Internal Affairs and Communications, the individual resident tax is assessed by the municipality and prefecture of your address on January 1, based on the prior year’s income. The standard income-based rate is 10% (6% municipal plus 4% prefectural).
In the U.S., income tax can have up to three layers: federal, state and local. Most states have an income tax, though some do not. Local income taxes are rarer and exist only in certain cities, counties and school districts in certain states.
| Japan resident tax | U.S. state income tax | U.S. local income tax (e.g., NYC) | |
|---|---|---|---|
| Who levies it | Municipality and prefecture | The state | Some cities, counties or school districts |
| Who pays | People with an address there on January 1 | Residents on all income; nonresidents on in-state income | Varies (NYC: residents only) |
| Income taxed | Prior year | Current year | Current year |
| Rate | Standard 10% flat (income portion) | Varies by state | NYC: 3.078% to 3.876% (2025) |
| How paid | Payroll deduction or tax bills | Withholding and estimated tax, settled on next year’s return | NYC: on the New York State return |
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New York City income tax
Who is an NYC resident?
The New York State tax department says the requirements to be an NYC resident are the same as for state residency. You are an NYC resident if either applies:
- Your domicile is in New York City (Manhattan, Brooklyn, Queens, the Bronx or Staten Island).
- You maintain a permanent place of abode in the city and spend 184 days or more there during the year (any part of a day counts as a day).
All NYC residents’ income, wherever it is earned, is subject to NYC personal income tax. Nonresidents of NYC are not liable for it.
NYC tax rates for 2025
If your NYC taxable income (line 47 of Form IT-201) is $65,000 or more, you use the rate schedule below; below $65,000 you use the tax table.
| Single / married filing separately | Married filing jointly | Rate |
|---|---|---|
| $0 to $12,000 | $0 to $21,600 | 3.078% |
| Over $12,000 to $25,000 | Over $21,600 to $45,000 | 3.762% |
| Over $25,000 to $50,000 | Over $45,000 to $90,000 | 3.819% |
| Over $50,000 | Over $90,000 | 3.876% |
Head-of-household brackets break at $14,400, $30,000 and $60,000. The rates look low next to Japan’s 10%, but NYC residents pay New York State and federal tax at the same time. The top New York State rate is 10.9%, for New York AGI over $25 million.
Filing and withholding
There is no separate NYC return. NYC tax is calculated on Form IT-201, the New York State resident return, along with NYC-only credits such as the NYC household credit and the NYC school tax credit. For withholding, Form IT-2104 asks whether you are a resident of New York City and of Yonkers, so update it with your employer when you move in or out.
Self-employed individuals with net earnings allocated to the Metropolitan Commuter Transportation District (MCTD) above $50,000 may also owe the metropolitan commuter transportation mobility tax (MCTMT), reported on lines 54a and 54b of IT-201.
Moving into or out of NYC during the year
If you became or stopped being an NYC resident during the year, you file Form IT-360.1, Change of City Resident Status, and compute NYC tax on income received while you were a resident. When moving out, special accrual rules can pull into the resident period income you earned while living in NYC but received after you left. In the year you arrive from Japan or move back, keep records that show your move date, such as leases and moving documents.
Working in NYC without living there
Because NYC tax applies only to residents, people who commute from New Jersey, Connecticut or other parts of New York State owe no NYC income tax.
Out-of-state commuters still owe New York State tax as nonresidents on New York-source income (Form IT-203) and also file in their home state. The tax department notes that people who live in one state and work in another typically receive a credit in their state of residence to avoid double tax. New York also has a special rule for days worked from home outside the state, so remote workers should take extra care.
The reverse also matters: if you live in NYC and commute to an office outside the city, all your income is subject to NYC tax as a resident. When choosing where to live, compare local taxes, not just the state where you work.
Yonkers
The two city income taxes calculated on New York State returns are NYC and Yonkers. Yonkers residency follows the same tests as the state and NYC (domicile, or a permanent place of abode plus 184 days).
| Who | Tax | Calculation | Form |
|---|---|---|---|
| Yonkers residents | Resident income tax surcharge | Net New York State tax after certain credits x 16.75% (2025) | IT-201 line 55 (part-year: IT-360.1) |
| Nonresidents who earn wages or do business in Yonkers | Nonresident earnings tax | Wages and self-employment earnings allocated to Yonkers x 0.5% (an exclusion table applies) | Form Y-203 |
The Y-203 instructions treat normal work days spent at home as Yonkers work days only when the employee’s assigned or primary work location is an employer office in Yonkers.
Other local income taxes (examples)
Local income taxes are not nationwide. These are examples confirmed on official state and city websites; the list is not complete, and rates change.
| Where | How it works | Rate |
|---|---|---|
| Maryland (23 counties and Baltimore City) | Reported on the state return (Form 502); based on where you live | 2.25% to 3.30% for the current tax year |
| Philadelphia, PA | Wage Tax on all employed residents wherever they work, and on nonresidents who work in the city | Residents 3.735%, nonresidents 3.425% (from July 1, 2026) |
| Other Pennsylvania municipalities and school districts | Earned Income Tax; employers withhold the higher of the resident or work-location rate | Varies |
| Ohio cities and school districts | Municipal income taxes (each city certifies its rate to the state) and school district income taxes collected by the state | Varies |
| Michigan (24 cities, including Detroit) | City income taxes; Detroit returns are processed by the state Treasury | Detroit: residents 2.4%, nonresidents 1.2% (2025) |
| Kansas City and St. Louis, MO | Earnings tax on residents wherever they work and on nonresidents for work in the city | 1% each |
Example: how your address changes the local tax
Example: a single filer whose income works out to $100,000 of NYC taxable income (deductions simplified for illustration).
- Lives in Manhattan (NYC resident): NYC tax = $1,813 + ($100,000 – $50,000) x 3.876% = $1,813 + $1,938 = $3,751 under the 2025 schedule, plus state and federal tax.
- Lives in New Jersey and commutes to NYC: NYC tax is $0. New York State nonresident tax applies, along with New Jersey resident tax with a credit for the New York tax.
- Lives in Yonkers: NYC tax is $0, but if net New York State tax is, say, $6,000, the Yonkers surcharge is $6,000 x 16.75% = $1,005.
- Lives elsewhere and works at a Yonkers office: on $100,000 of Yonkers-allocated wages, the nonresident earnings tax is $100,000 x 0.5% = $500 (ignoring the exclusion).
FAQ
Do U.S. state and city taxes arrive as a bill the following year, like juminzei?
No. State and NYC taxes are generally withheld from pay during the year and settled on the next year’s return. The 2025 New York State return was due April 15, 2026.
Can I deduct NYC income tax on my federal return?
State and local income taxes count toward the SALT deduction if you itemize on Schedule A. IRS Topic 503 shows a combined limit of $40,000 ($20,000 if married filing separately), reduced for higher modified AGI but not below $10,000.
Does owning an NYC apartment make me a resident?
If you maintain a permanent place of abode in NYC and spend 184 days or more there, you can be an NYC resident even if your domicile is elsewhere. Form IT-201 asks nonresidents with NYC living quarters to report the days spent in the city, so keep a record of your days.
What happens to NYC tax in the year I move back to Japan?
If you give up your NYC domicile, you generally file as a part-year resident using IT-360.1. The tax department says NYC domicile does not change until you show with clear and convincing evidence that you abandoned it and established a new one.
At CLT NY INC., an IRS Enrolled Agent can help with New York State, NYC and Yonkers returns, including part-year filings in the year you move or return to Japan, in English or Japanese. Contact us.
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Related articles
- When is Residence Tax Paid? Understanding the Timing Differences Between US State Tax and Japanese Local Tax
- Navigating the Strict State Taxes of New York and California: Residency Risks for Individuals Returning to Japan
- States with No State Income Tax & Tax Considerations for Moving Within the U.S.: A Comprehensive Guide
- How U.S. Property Tax Works and the SALT Deduction Cap: What the OBBBA Increase to $40,000 Means for Homeowners
- Moving to Texas or Florida (0% State Income Tax)! Remote Work Taxes & Double Taxation Risks
- State Tax Filing and Out-of-State Sourced Income: Navigating Complex Rules
Sources: NYS Department of Taxation and Finance, FAQs on filing requirements, residency and telecommuting; Instructions for Form IT-201 (2025); NYS 2025 tax tables; Instructions for Form IT-360.1; Instructions for Form Y-203; Form IT-2104; Ministry of Internal Affairs and Communications (Japan), individual resident tax; Comptroller of Maryland, income tax rates; City of Philadelphia, Wage Tax; Pennsylvania DCED, Local Withholding Tax FAQs; Ohio Department of Taxation, municipal income taxes; Ohio Department of Taxation, school district income tax FAQs; Michigan Treasury, Which cities impose an income tax?; Michigan Treasury Form 5123 (2025); City of Kansas City, Earnings Tax; City of St. Louis, Earnings Tax; IRS Topic no. 503, Deductible taxes. Information as of October 2026. This article provides general information and is not individual tax advice.
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