Some New Yorkers Should Get Ready to Pay More Income Tax
The new year brings a new beginning for many people, but it also brings new taxes to New York. Income tax rates in New York State are on the rise for 2022 and you may be impacted by these new rate increases.
New York Governor Kathy Hochul just released her 2022-23 draft Executive Budget which details New York's spending priorities for the next year. The Executive Branch of New York's government has a long list of items that they are looking to fund this year. You can find a nice summary of those priorities right here.
The New York State operating budget is estimated to increase the state by approximately 3.1% compared to last year. That amounts to a roughly $3 billion increase from the last budget. A large chunk of that increase is being covered by assistance from the federal government thanks to funds received from the various COVID-19 assistance programs, but unfortunately, that aid doesn't cover everything.
Current state income tax rates range from 4% to approximately 8.8%. Starting with the 2021 state budget, the rate brackets have changed and increased to range from 4% to roughly 10.9%.
The rates are mostly flat for lower-income New Yorkers and will decrease for middle-income residents. However, the personal income tax rates for higher-income New Yorkers are going up quite a bit, with the highest earners paying almost a full 2% more.
New York State Tax Rate Schedule for 2021 Tax Year
You can find out all the details about the state budget and any tax rate changes that are proposed in the New York State Fiscal Year 2023 Executive Budget Financial Plan right here.