New York Tax
New York State Tax
New York Income Tax
New York is considered to be the state with the 2nd highest tax burdens in the United States. New York state taxes amounted to approximately 12.1% of taxpayers’ income in 2011.
To help relieve high tax burdens, the New York Department of Taxation and Finance allow tax credits on dependents, college expenses, alternative fuel use, military service, etc. The state government also signed the Tax Reduction Bill in 2011. The bill aims to lower mid-bracket tax rates in New York.
Even so, residents and non residents earning in the state still pay personal income tax rates ranging from 4% to 8.97% every year. The maximum marginal personal income tax rate in New York is the 4th highest in the US. Corporations pay 7.1% of their yearly taxable income.
The State of New York collects relatively low state sales taxes. However, special taxes and surcharges levied by local counties and municipalities raise the total sales tax rate to up to three times the base state tax rate. Thus, sales taxes collected in New York range from 4% to 13.075% depending on the region where the purchase is made.
Medicine and most grocery items are exempted from state sales tax in New York. The state does not levy sales taxes on college textbooks and clothing items under $100 as well. Although generally exempted from tax, online and out-of-state purchases are taxed if the non-resident merchant earns over $10,000.
New York median property tax is 5th highest in the country. Property tax amounts to 5.02% of the residents’ annual gross income.
