Form IT-203-Y: Yonkers Nonresident Earnings Tax Return (2026)

Last reviewed: 2025-10-29

Use the New York Tax Form Calculator Form IT-203-Y — Yonkers Nonresident Earnings Tax Return as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 New York state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.

Form IT-203-Y (also referenced as Form Y-203) must be filed by a nonresident of Yonkers who earned wages, net self-employment income, or participated in a trade or business in the City of Yonkers during the year and who must file a New York State personal income tax return (either IT-201 or IT-203). Its purpose is to compute the local Yonkers nonresident earnings tax on New York (and Yonkers) source income and transfer the result to your state return.

Use this form to allocate your wages or net self-employment earnings that relate to services performed in Yonkers, determine allowable exclusions, compute tax, and include the amount on your state return.

1. Who must file: Nonresidents of the City of Yonkers who earned wages or net self-employment income for services performed in Yonkers or carry on a Yonkers business. Each spouse must file a separate Form IT-203-Y if both have taxable Yonkers nonresident income.
2. Wages & self-employment income: “Wages” include salary, bonuses, tips, commissions, severance pay, etc. “Net self-employment income” is defined under section 1402(a) of the IRC and includes partnership guaranteed payments if you materially participated. Non-employee income not subject to withholding must be reported if generated in Yonkers.
3. Exclusion table: Depending on the number of months you were a Yonkers non-resident or the amount of wages/self-employment net earnings, an exclusion amount may apply (e.g., $3,000 maximum if total wages and net earnings ≤ $30,000 and you were non-resident all 12 months). If total wages and net earnings exceed $30,000, no exclusion applies.
4. Separate spouse filings: If both you and your spouse earned Yonkers-source income, each must file their own IT-203-Y. When you file a joint NY return, combine Yonkers taxes reported from both forms and enter the total on the state return.
5. Transfer to state return: The tax computed on IT-203-Y must be transferred to your IT-201 or IT-203 return line indicated for “Yonkers nonresident earnings tax.” Failure to attach IT-203-Y may delay processing of the corresponding state return.

Computing the Yonkers Nonresident Earnings Tax

Step 1 – Enter wages and net self-employment earnings derived from services performed in Yonkers during the year. Step 2 – Using the exclusion table, determine the amount to exclude from tax based on months of non-residence and total earnings. The table reduces the tax base for eligible taxpayers.

Next, subtract the exclusion amount from the total New York source earnings to arrive at the tax-base amount on which the Yonkers nonresident earnings tax is computed. If total wages or net earnings exceed the maximum threshold ($30,000), the exclusion is zero and the full amount is subject to tax.

Apply the Yonkers nonresident rate (½ of 1 %) to the tax-base amount. Enter the result on IT-203-Y line 6 and transfer it to your IT-201 line 56 or IT-203 line 53, as appropriate. If you pay estimated tax related to Yonkers income, include this tax when calculating your New York estimated payments.

Example: You are not a resident of Yonkers and earned $25,000 in Yonkers wages. You were a Yonkers non-resident all year (12 months). From the exclusion table, you qualify for a $3,000 exclusion. Subtracting leaves $22,000 subject to tax. The tax due is 0.005 × $22,000 = $110. This amount is entered on your IT-203-Y and carried to the state return.

Withholding and estimated tax coordination: Ensure that Yonkers withholding (if any) was properly applied. If you owed Yonkers nonresident earnings tax and withheld amounts were less than required, include the shortfall with your state return payment. If you over-withheld, retain proof and reconcile when you file IT-203-Y.

Compliance and Documentation Tips

Maintain documentation of your days worked or services performed in Yonkers, your employer’s location, and wages or self-employment net earnings. Keep employer wage slips, W-2s, K-1s, or official statements that identify Yonkers work location. These support your eligibility for exclusions and tax base calculations.

If you subsequently file an amended return or your residency status changed mid-year (part-year Yonkers resident then non-resident), complete IT-3601 if you changed city resident status, adjust your wage base, and recompute the Yonkers tax via IT-203-Y.

For payroll or employer mis-classification issues (such as withholding for residents when you were nonresident) reconcile early. If your facts include overlapping New York City, Yonkers and state obligations, coordinate with your CPA or tax software to avoid double-withholding or underpayment penalties.

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Important Notes

All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.