Three years after boosting New York State’s top tax rate to its highest level since 1981, Democratic majorities in both houses of the Legislature have united behind a plan to raise personal income taxes even higher on Empire State income millionaires.
Identical tax hike provisions were included in alternative budget proposals passed by the Assembly and state Senate this week — setting the stage for negotiations with Gov. Hochul heading into the next state fiscal year, which starts April 1.
Lawmakers in Albany want to raise the state’s top two tax rates a half-percentage point, to 10.8% on incomes starting at $5 million, and to 11.4% on incomes starting at $25 million. As things now stand, New York State’s top rate is second highest in the nation, exceeded only by California — but including local income tax, residents of New York City already are subject to the highest tax rates in the country.
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E.J. McMahon is a senior fellow at the Empire Center for Public Policy and a Manhattan Institute adjunct fellow. Follow him on Twitter here.
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