New York

Sales Tax

  • Statewide: 4.0%
  • Counties can levy an additional sales tax of no more than 4.875%.
  • Current average sales tax (with local taxes included): 8.25%
  • Common Exceptions at State Level:
    • Prescription and Over-the-Counter Medicine: Exempt
    • Unprepared Foods: Exempt
    • Clothing less than $110 for a single item: Exempt
  • Gasoline Tax: 66.62 cents/gallon (Includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 71.38 cents/gallon (Includes all state, local, and federal taxes)
  • The NYC metro area levies a .375% to support transit. 

 

Personal Income Tax

  • Personal Income Tax Rate Range: Nine brackets from 4.0% to 10.9% (top bracket on income greater than $25,000,000)
  • Standard deduction: Single Filing Status: $8,000. Married Filing Jointly: $16,050
  • Personal Exemption Allowance: Dependent $1,000
  • Itemized Deductions Allowed?: Yes, subject to limitations.
  • Retirement Income
    • Social Security: Exempt
    • IRAs: Taxable at ordinary income tax rates*
    • 401Ks/Defined contribution employer retirement plans: Taxable at ordinary income tax rates*
    • Private pensions: Taxable at ordinary income tax rates*
    • Public Pensions: Most are exempt*
  • Military Pay
    • Active Duty Pay: Taxable to the extent included in federal Adjusted Gross Income
    • Military Retirement Pay: Exempt
    • Military Disability Pay: Exempt
    • VA Disability Dependency & Indemnity Compensation Benefits: Exempt
    • SBP/SSBP/RCSBP/RSFPP: Exempt
Income Tax Comments: *For a taxpayer over 59 1/2, an exemption of $20,000 of private pensions or out-of-state government is available. State allows county- and city-level income tax.

 

Property Tax

  • Local municipalities average 1.64% of the property's assessed value.
  • Calculation of assessed value: 6% of fair market value. Cannot increase more than 20% in five years.
  • Relief programs for:
    • Owner-Occupied or Disabled: Maximum credit of $350 if property taxes exceed 6% of AGI. Subject to phase-out.
    • 65 and Over: Up to 50% reduction in assessed value if meet income and other requirements.
    • Veterans: Reductions in assessed value available based on designated time of war.
  •  Personal Property Tax: Yes. Rates and exemptions vary.

 

Inheritance & Estate Taxes: Estates over $6,940,000 can be taxed between 3.06% and 16%. New York applies estate taxes using the cliff tax method, which generally leaves a larger portion of your estate subject to tax compared with other states with an estate tax. There is no inheritance tax.

 

Department of Revenue website: www.tax.ny.gov

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