Form IT-2104: Employee’s Withholding Allowance Certificate (2026)

Q: How much income can be excluded on IT-221?

You may exclude up to <b>$5,000 ($10,000 for joint filers)</b> of qualifying disability income, reduced by any NY pension or annuity exclusion previously claimed.

Q: Are HSA contributions deductible for New York tax?

No—unlike the federal system, New York does <b>not</b> allow an HSA deduction.

Last reviewed: 2025-10-29

Use the New York Tax Form Calculator Form IT-2104 — Employee’s Withholding Allowance Certificate 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-2104 is the certificate an employee submits to their employer to determine the correct amount of New York State (and potentially New York City or Yonkers) income tax to withhold from each paycheck. The number of allowances claimed and any additional withholding entered directly affect take-home pay and year-end tax liability.

Employers must keep the completed IT-2104 on file and use it along with withholding tables or formulas to deduct tax appropriately. Employees should submit a new certificate when personal or financial situations change (e.g., marital status, job changes, moving out of NYC or Yonkers, eligibility for credits, or non-wage income increases).([tax.ny.gov/forms/current-forms/it/it2104i.htm])

Who submits: Every employee in New York State who wants to claim allowances for state or local tax withholding should file IT-2104 with their employer. A new certificate should be filed when facts change significantly.
Allowances worksheet: The accompanying worksheet computes the number of withholding allowances based on dependents, expected credits (e.g., earned income credit, child credit), itemized deductions, non-wage income, and marital status. Part 1 of the worksheet handles basic allowances, Part 2 covers itemized deduction cases, Part 3 covers special covered employees.
Additional withholding: If an employee’s circumstances mean the standard allowance tables would under-withhold (e.g., multiple jobs or large non-wage income), the worksheet allows entering a specific additional dollar amount to be withheld each pay period.
Employer rental/disclosure rules: If the employee claims more than 14 allowances, the employer must send a copy of the certificate to the New York State Tax Department. Box A on the form must be checked in that instance. Box B is used for new hires or rehires and New Hire Reporting obligations.
Withholding-exemption certificates: IT-2104 is not used to claim exemption from withholding. To claim exemption, employees must file the appropriate exempt form (e.g., IT-2104-E for exemption from withholding).

Employee’s Withholding Allowance Certificate
Are you a resident of New York City? Yes No
Are you a resident of Yonkers? Yes No
Complete the worksheet on page 3 before making any entries.
1	Total number of allowances you are claiming for New York State and Yonkers, if applicable (from line 18)		1
2	Total number of allowances for New York City (from line 29)		2
Use lines 3, 4, and 5 below to have additional withholding per pay period under special agreement with your employer.
3	New York State amount		3
4	New York City amount		4
5	Yonkers amount		5
Penalty – A penalty of $ may be imposed for any false statement you make that decreases the amount of money you have withheld from your wages. You may also be subject to criminal penalties.
Employee: detach this page and give it to your employer; keep a copy for your records.
Employer: Keep this certificate with your records. Mark an X in box A and/or box B to indicate why you are sending a copy of this form to New York State (see instructions):
A.	Employee claimed more than 14 exemption allowances for NYS
B.	Employee is a new hire or a rehire First date employee performed services for pay (mm-dd-yyyy) (see instr.):
	Are dependent health insurance benefits available for this employee? Yes No f Yes, enter the date the employee qualifies (mm-dd-yyyy):
Worksheet
See the instructions before completing this worksheet
Part 1 – Complete this part to compute your withholding allowances for New York State and Yonkers (line 1).
6	Enter the number of dependents that you will claim on your state return (do not include yourself or, if married, your spouse)		6
For lines 7, 8, and 9, enter 1 for each credit you expect to claim on your state return.
7	College tuition credit		7
8	New York State household credit		8
9	Real property tax credit		9
For lines 10, 11, and 12, enter 3 for each credit you expect to claim on your state return.
10	Child and dependent care credit		10
11	Earned income credit		11
12	Empire State child credit		12
13	New York City school tax credit: If you expect to be a resident of New York City for any part of the tax year, enter 2		13
14	Other credits (see instructions)		14
15	Head of household status and only one job (enter 2 if the situation applies)		15
16	Enter an estimate of your federal adjustments to income, such as alimony you will pay for the tax year and deductible IRA contributions you will make for the tax year. Total estimate $ Divide this estimate by $. Drop any fraction and enter the number		16
17	If you expect to itemize deductions on your state tax return, complete Part 2 below and enter the number from line 26. All others enter 0		17
18	Add lines 6 through 17. Enter the result here and on line 1. If you have more than one job, or if you and your spouse both work, see instructions for Taxpayers with more than one job or Married couples with both spouses working		18
Part 2 – Complete this part only if you expect to itemize deductions on your state return.
19	Enter your estimated federal itemized deductions for the tax year		19
20	Enter your estimated state, local, and foreign income taxes or state and local general sales taxes included on line 19		20
21	Subtract line 20 from line 19		21
22	Enter your estimated college tuition itemized deduction		22
23	Add lines 21 and 22		23
24	Based on your federal filing status, enter the applicable amount from the table below		24
	Standard deduction table
	Single (cannot be claimed as a dependent) $	Qualifying widow(er) $
	Single (can be claimed as a dependent) $	Married filing jointly $
	Head of household $	Married filing separate returns $
25	Subtract line 24 from line 23 (if line 24 is larger than line 23, enter 0 here and on line 17 above)		25
26	Divide line 25 by $. Drop any fraction and enter the result here and on line 17 above		26
Part 3 – Complete this part to compute your withholding allowances for New York City (line 2)
27	Enter the amount from line 6 above		27
28	Add lines 15 through 17 above and enter total here		28
29	Add lines 27 and 28. Enter the result here and on line 2		29

Completing IT-2104 Step-by-Step

Step 1: Complete your personal information (name, address, SSN, marital status). Mark the correct box — Single/Head of Household, Married, Married but withhold at the higher single rate.

Step 2: Calculate allowances. Use the worksheet: enter the number of dependents, expected credits, and estimate adjustments. The worksheet shows how various credits reduce allowable withholding allowances (for example, dividing expected credit by a fixed divisor to get allowance count). If you itemize deductions, complete Part 2 of the worksheet and adjust line 18 accordingly.

Step 3: If required, enter any additional withholding amount in dollars on the lines provided (e.g., line 3 state amount if you expect to owe tax or have other income). Part 4 handles New York City allowances if applicable.

Example: You are single, expect to claim the earned-income credit, have non-wage income of $2,000, and expect your NYAGI to be under the threshold. On the worksheet you enter one dependent allowance for your child, reduce allowances due to non-wage income, and you estimate an additional $50 extra withholding per month using line 3. You complete IT-2104 and submit it to your employer on first day of employment.

Review your IT-2104 annually or when your income or circumstances change. Employers may rely on older certificates, but you risk under-withholding and a balance due when you file your state return.

Last reviewed: 2025-10-29: If you believe this form requires an update, please contact us.

Employee & Employer Planning Tips

Employees: Pay attention to major life changes (marriage, moving out of NYC/Yonkers, starting a second job, itemizing). Submitting a new IT-2104 when such changes occur prevents tax surprises and potential penalties for under-withholding.

Employers: Retain the most recent IT-2104 submitted by each employee along with the worksheet. If an employee claims negative allowances or more than 14 allowances, follow the checklist in the instructions: send copies to NY DTF, update payroll tables accordingly, and review forms annually.

Audit readiness: Keep the worksheet and support documentation used to compute allowances for at least three years. If NY DTF audits withholding, they will review the certificate, employee’s wage history, and whether enough tax was withheld. A certificate claiming undue allowances may trigger a significant withholding adjustment or penalty.

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Frequently Asked Questions

Does IT-203-ATT replace IT-112-R or IT-112-C?

No. Those forms calculate credits for taxes paid to other jurisdictions, and their totals are then entered onto IT-203-ATT where indicated.

How much income can be excluded on IT-221?

You may exclude up to $5,000 ($10,000 for joint filers) of qualifying disability income, reduced by any NY pension or annuity exclusion previously claimed.

Can part-owners of a property claim IT-119?

Yes — if the notice issued reflects the property key and entity ownership, each owner must enter their share of the underpayment on IT-119 and may attach separate forms as required.

Can I use IT-203-B to claim the NY College Tuition Deduction?

Yes. Part 2 of IT-203-B calculates the allowable college tuition itemized deduction or credit, depending on your AGI and tuition amounts paid.

Are HSA contributions deductible for New York tax?

No—unlike the federal system, New York does not allow an HSA deduction.

Important Notes

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