Some Things To Know About New York State Tax

It’s not news that most people complain about having to pay taxes. New Yorkers seem to especially complain about their state and local tax burden. The Tax Foundation, with a database that currently covers the years 1977-2012, interprets the tax burden of individual taxpayers by measuring what they actually spend in local and state taxes. Its. According to its rankings of states with the highest state and local tax burdens, Americans paid an average rate of 9.9 percent in state and local taxes in 2012. Further, the state with the highest state-local tax burden was New York at 12.7 %. In fact, the top three states – New York, New Jersey and Connecticut – have been ranked as the top three in this category since 2005. Not surprisingly, New York’s tax laws are relatively complex compared to other U.S. states. Here are some things to know about taxes in the Empire State.

Income Tax
New York’s income tax rate is one of the ten highest rates in the country. New York collects state income taxes using a progressive 8-bracket system, which uses rates that vary from 4% to 8.82%. Joint filers pay the same rates, with brackets approximately double those of single filers. For single taxpayers:
• 4% on the first $8,400 of taxable income.
• 4.5% on taxable income between $8,401 and $11,600.
• 5.25% on taxable income between $11,601 and $13,750.
• 5.9% on taxable income between $13,751 and $21,150.
• 6.45% on taxable income between $21,151 and $79,600.
• 6.65% on taxable income between $79,601 and $212,500.
• 6.85% on taxable income between $212,501 and $1,062,650.
• 8.82% on taxable income of more than $1,062,651.

The state’s earned income credit has increased to 30% of the federal credit. The credit which helps lower income employed taxpayers, is a great tool to reduce the amount of taxes owed, even resulting in a refund in some cases.

Sales Taxes
Sales tax applies to retail sales of certain tangible personal property and services. Use tax applies if you buy tangible personal property and services outside the state and use it within New York State. New York’s sales tax rate of 4% is higher only than the six states that charge no sales tax at all. However, most counties in New York collect taxes and surcharges in addition to this 4% rate, increasing and varying the actual sales tax rate in a particular county. Then there is the possible addition of any applicable local sales taxes as well.

Real/Personal Property Taxes
Real property in New York is taxed based on its value of course. Counties and other forms of municipalities, as well as school districts and special districts, raise money to provide and pay for services and utilities through real property taxes. Each parcel of real property in New York receives a taxable assessment which determines the ultimate dollar amount of the tax when the county or local tax rate is applied. State law in New York provides that every property in most municipalities is assessed at a uniform percentage of value. This percentage can be anything as it long as it does not exceed 100%.

Inheritance and Estate Tax
While New York has no inheritance tax, an estate is required to file a New York state estate tax return if the total of the federal gross estate plus adjustments for taxable gifts and exemptions exceed the basic exclusion amount. This applies to taxpayers that were New York residents at the time of death or any U.S. resident or citizen having an estate including real or tangible personal property located in New York. The basic exclusion amount, or BEA, is adjusted each year. For deaths between April 1, 2015, and March 31, 2016, the BEA is $3,125,000, but it will increase to $5,250,000 for deaths on or after April 1, 2017, and on or before Dec. 31, 2018.

If you are a resident of New York state and live in the New York City Tri-State area and have questions about New York income, sales, property, or estate taxes, call THE TAX EXPERTS at the Thorgood Law Firm For a FREE consultation call 212-490-0704.
Some Things To Know About New York State Tax

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