NYC Section 1127 for Nonresident City Employees

Quick answer

Certain New York City government employees who live outside the city can be required to make a payment under Section 1127 based on the NYC personal income tax they would have paid if they were city residents. That does not make the employee a NYC resident, and the Section 1127 payment is not the same thing as NYC resident personal income tax.

What can change the answer?

• New York City government employer or agency.
• Employment position.
• Hire date.
• Residence during the employment period.
• Period of New York City government employment.
• Amount that would otherwise be determined under the Section 1127 framework.

Related NYC tax questions

• Who Pays NYC Personal Income Tax?
• Do I Still Pay NYC Tax After Moving Away?
• Living in New Jersey and Working in New York

Official source

• New York City Department of Finance — Personal Income Tax and Non-Resident NYC Employee Payments (Form NYC-1127)
• New York City Department of Finance — Form NYC-1127, Return for Nonresident Employees of the City of New York

The rule being applied

Section 1127 requires certain New York City government employees who are not city residents to make a payment measured by the New York City personal income tax that would apply if they were residents. It is a separate obligation from New York City resident personal income tax and does not make the employee a city resident.

Jurisdiction: New York City Section 1127 / applicable NYC government administration · Structural rule; current for 2026 review.