Interstate air carriers

Resident – Compensation paid to a New York State resident who is an employee of an interstate air carrier is subject to New York State personal income tax. An employer who is an interstate air carrier must withhold New York State (and New York City or Yonkers, if applicable) income tax.

Nonresident – Compensation paid to a nonresident of New York State who is an employee of an interstate air carrier is subject to New York State personal income tax only if more than 50% of the employee’s compensation is earned within New York State. An employer who is an interstate air carrier must withhold New York State (and New York City or Yonkers, if applicable) income tax on an employee’s compensation if more than 50% is earned within New York State. Since an employee of an interstate air carrier who earns 50% or less of their compensation within New York State is not subject to New York State personal income tax, they are not subject to withholding.

More than 50% of the employee’s compensation is considered earned in New York State (and New York City or Yonkers, if applicable) if the employee’s scheduled flight time in New York for the calendar year is more than 50% of the employee’s total scheduled flight time for the calendar year.

A nonresident employee of an interstate air carrier may request New York State, New York City, or Yonkers withholding. See part R, Voluntary withholding agreements .