New York Governor Coumo officially released the proposal to raise personal income tax rates for high earners as part of the $193 billion 2022 fiscal year budget.
The governor expects this increase to raise around $1.5 billion of tax revenue, and would include federal aid and operating cuts to cover a projected $15 billion deficit in the coming years.
The new raise would apply to all New Yorkers with income more than $5 million and the highest rate would apply to income that is greater than $100 million.
More specifically, the tax increase comes as a “surcharge” and is proposed to be implemented for tax years 2021-2023. The following tax bracket rates will apply:
- Over $5 million but not greater than $10 million – 0.5% surcharge rate
- Over $10 million but not greater than $25 million – 1.0% surcharge rate
- Over $25 million but not greater than $50 million – 1.5% surcharge rate
- Over $50 million but not greater than $100 million – 1.75% surcharge rate
- Over $100 million – 2.0% surcharge rate
This increase would mean that New York City taxpayers in the top bracket would pay the highest combined local tax rate in the country of 14.7%, topping California’s 13.3% income tax.
Unsurprisingly, supporters and financial groups have rounded up debates in response to this possible New York tax change. The final budget is expected to be passed in late
March or April. You can check out the 2022 New York State Executive Budget here. Levine and associates will continue to monitor new guidelines that will be released regarding the tax increase.
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