The Tax Foundation recently conducted a study of the tax climates in each of the fifty states and then rated and ranked them based on five categories: corporate tax, individual income, sales tax, unemployment insurance tax, and property tax. The Tax Foundation’s rankings are designed to show how well state tax systems are structured, rather than simply rank the states by the amount of taxes assessed.
New York finished 2nd last (49) in overall tax climate and it ranked in the individual tax categories as follows: 7 (corporate tax), 49 (individual income tax), 43 (sales tax), 32 (unemployment insurance tax), and 47 (property tax).
New York’s highest rate for taxing income is 8.82%. New York has eight tax brackets for individual income tax:
- Income in an amount more than $0 but less than $8,450 is taxed at a rate of 4.00%.
- Income in an amount more than $8,450 but less than $11,650 is taxed at a rate of 4.50%.
- Income in an amount more than $11,650 but less than $13,850 is taxed at a rate of 5.25%.
- Income in an amount more than $13,850 but less than $21,300 is taxed at a rate of 5.90%.
- Income in an amount more than $21,300 but less than $80,150 is taxed at a rate of 6.45%.
- Income in an amount more than $80,150 but less than $214,000 is taxed at a rate of 6.65%.
- Income in an amount more than $214,000 but less than $1,070,350 is taxed at a rate of 6.85%.
- The top individual income tax rate is 8.82% for income over $1,070,350.
New York collects an exorbitant $2,550 in state and local individual income tax per capita! As to state-local tax burdens, residents of New York have the highest burden, with 12.7 percent of their income expended for state and local taxes followed by Connecticut (12.6 percent) and New Jersey (12.2 percent).
It is wise for taxpayers, whether an individual or business located in the New York or Tri-State area, to consult with a tax professional to help assess their current tax situation, looking ahead to the future. If you have any question about taxes, especially in planning ahead for the next filing season, call THE TAX EXPERTS at the Thorgood Law Firm www.thorgoodlaw.com. For a FREE consultation call 212-490-0704.
