New York · Nonresident Income Allocation
New York taxes nonresidents only on New York-source income — but 'source' is broader than you think.
Nonresidents file the IT-203 and pay New York tax only on New York-source income — but wages get allocated by a workday fraction that the convenience rule can inflate, and several income types are sourced to New York by statute.
What counts as New York-source income for a nonresident?
Under Tax Law §631, New York-source income includes income attributable to a business, trade, profession or occupation carried on in New York; services performed in New York; real or tangible property located in New York (including gains from its sale); and specific statutory items (lottery/gambling over thresholds, certain equity compensation, S-corp and partnership flow-through attributable to New York).
How are wages split when I work both in and out of New York?
By the allocation fraction in 20 NYCRR Part 132: New York work days over total work days, applied to total compensation. Weekends, holidays and genuine non-working days are excluded from the denominator — and home-office days generally count as NEW YORK days under the convenience rule unless your home office is a bona fide employer office.
Are my dividends, interest and retirement income taxed by New York as a nonresident?
Commonly misreportedGenerally no. Intangible investment income of a nonresident is not New York-source unless it is property employed in a New York business. Federal law (4 U.S.C. §114) also bars states from taxing most retirement income of nonresidents. New York's reach over nonresidents is real but bounded — the danger zone is becoming a statutory RESIDENT, which flips you to worldwide taxation.
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Related New York tax questions: Remote Work & the Convenience Rule · Stock Options & RSUs · Selling NY Property as a Nonresident · Lottery & Gambling Winnings
Tax intelligence, not tax advice. Every answer above cites primary law you can check; a qualified professional should review your specific situation before filing. TaxPulse — a PulseNetwork intelligence engine.