The plane had just left the city's La Guardia airport when it is thought to have hit a flock of birds, which disabled two engines, said authorities.
The Airbus A320, with 148 passengers and at least five crew, was destined for Charlotte airport in North Carolina when the accident happened.
There are reports of some injuries - but everyone is believed to have survived.
Passengers said the captain told them to brace for impact and then they heard an explosion, which is thought to be the moment the plane crashed.
Emergency services then tried to get the passengers off the aircraft as quickly as possible.
TV footage showed dozens of them on the wings of the plane as it floated on the freezing cold river.
They were later all rescued. One passenger said he thought the plane had dropped about 100ft and he had stood in about 5ft of water after the crash.
The jet took off at 3:26pm local time (8:26pm UK time) and was in the air for just three minutes.
Witnesses on the ground reportedly saw a bird strike.
The FBI said it had no information that the New York crash was an act of terrorism.
Department of Homeland Security spokeswoman Laura Keehner said: "There is no information at this time to indicate that this is a security-related incident.
"We continue to closely monitor the situation, which at present is focused on search and rescue."
One witness Barbara Sambriski said: "I just thought, 'Why is it so low?' And, splash, it hit the water."
Emergency services reportedly had stretchers waiting at the riverbank to take people to hospital.
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