New York State Income Tax Reduction to Start January 1
On the first day of the year some new laws kick in here in the state of New York. One of them could mean a little more money in your paycheck.
Back in 2016, legislation was passed to give the New York middle class a tax break. And starting in the new year, the new rate will kick in!
According to the New York Senate website the new rates will start January 1 and 4.4 million New York residents will benefit. This is the first in a phase of cuts that will ultimately put $4.2 billion back in taxpayer's pockets.
So how much extra could this mean for your paycheck? To start the difference may not be that noticeable as the current tax rate of 6.45% for those in the $40,000 to 150,000 bracket will be decreased by .12% each year, according to the CPA Journal. The rate will be reduced yearly until it hits 5.5% in 2025. For taxpayers in the $150,000 - 300,00 bracket the rate will be reduced by .08% from the currents rate of 6.65% over the same time period.
We can always dream about significantly lower taxes which will probably never become a reality, but at least in this scenario they are going in a direction that benefits us!