What Is the NY PFL Tax?

The NY PFL tax is the employee contribution that funds New York Paid Family Leave (PFL), a mandatory state program that provides paid, job-protected leave for eligible workers.

1) What New York Paid Family Leave (PFL) is

New York Paid Family Leave allows eligible employees to take paid time off to:

• Bond with a new child (birth, adoption, foster care)
• Care for a family member with a serious health condition
• Assist family members when a spouse, domestic partner, child, or parent is deployed for military service

2) How the NY PFL tax works (employee-funded)

• Paid entirely by employees (employers do not contribute)
• Withheld through payroll deductions
• Funds the PFL insurance policy purchased by the employer

3) NY PFL contribution rate for 2025

For calendar year 2025:

• Contribution rate: 0.373% of gross wages
• Annual wage cap: $91,404.34 (2025 NY State Average Weekly Wage × 52)
• Maximum annual employee contribution: $341.49

[0.373% \times $91,404.34 = $341.49]

Once an employee reaches the annual cap, no further PFL tax is withheld for the year.

Updated NY PFL Figures for 2026

The New York Department of Financial Services (DFS) has set the following for January 1, 2026 – December 31, 2026:

4) Who must pay NY PFL tax

Covered employees

• Most private-sector employees working in New York
• Part-time employees (after meeting eligibility thresholds)

Not required to pay

• Federal employees
• Certain public employees (unless employer opts in)
• Employees who have filed an approved PFL waiver

5) Is NY PFL tax deductible?

Federal tax treatment

• NY PFL contributions are treated as a state payroll tax
• They are generally deductible as a state tax on Schedule A, if you itemize
• Subject to the $10,000 SALT cap ($5,000 if MFS)

If you take the standard deduction, you receive no federal tax benefit.

6) How NY PFL appears on your paystub and W-2

• Usually labeled as “NY PFL,” “PFL EE,” or “Paid Family Leave”
• Included in Box 14 of Form W-2 (informational)
• Not included in Box 1 as additional taxable wages (it’s already withheld from wages)

Remember that an employee can only waive PFL if they do not meet the eligibility requirements (e.g., they work fewer than 20 hours a week and won't hit 175 days in a year). If they are eligible, the tax is mandatory; they can't just "opt out" because they don't plan on having kids.

Summary

• NY PFL tax funds New York Paid Family Leave
• Employee-paid only (employers do not contribute)
• 2025 rate: 0.373% of wages
• 2025 max: $341.49 per employee
• Potentially deductible federally if you itemize (SALT cap applies)

Other Blogs To Read

• SALT Deduction: Will You Benefit or Lose From Itemizing?
• Above the Line Tax Deductions: How to Prepare Your Taxes
• Tax Deductions: The Best Ones That Are Easily Overlooked

Source:

NY Workers’ Compensation Law §204

NY PFL 2025 Rates & Benefits

NY PFL Eligibility Rules

IRC §164(a) & §164(b)(6)

Schedule A Instructions (Form 1040)

NY Employer Payroll Guidance