NY State Income Tax - I was mislead (New York, Yonkers: sales, home sales)
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I have read countless sources claiming NY state income tax is 8 point something percent. NY shows up on these top 10 lists of highest state income tax and the number they show is always 8 point something percent.
As we are getting more serious about making NY our home state, I finally started looking into this more. Previously I had always considered the "high" income tax the only reason to rule out NY. But maybe I've been mislead about this. I think the 8.82% I always see for NY is actually the old top tax rate, and it looks like for a married couple filing jointly income between $27,901 - $161,550 is taxed at 5.85% and even the next bracket up which goes to $323,200 is only taxed 6.25%. This is not significantly higher than most other states that have state income tax! NY doesn't get into a rate that's truly higher than other income taxing states until you're making over $2 million!
But then I read "all residents who have adjusted gross income over $107,650 also pay a supplemental tax." Form IT-201. Does this weird "supplemental tax" usually amount to a negligible sum?
Unless that supplemental tax adds a LOT to the total income tax, I think I've been quite mislead about NY's supposedly astronomical state income taxes. Like I said it had been the main roadblock that's prevented us from picking NY. In hindsight I obviously should have realized NY is not a flat tax state so no matter what number I was seeing on these lists I should have looked up the actual brackets. We're in no danger of making $2M a year any time soon so our NY income tax rate looks like it'd be comparable with most other states that have income tax. This discovery, if accurate, comes as wonderful news and a great relief.
8.82 percent vs 6.25 percent tax. Roughly 2.5 percent difference. That prevented you from moving to New York State ? With a progressive Tax at the brackets you mention for a married couple it’s an extra 6000-9000.
Look into property tax/school tax depending on where in New York State that blows your 2.5 percent income tax difference out the window.
Your property tax as a middle class resident on Long Island can be double your state income tax bill.
Last edited by 94nasupra; 10-08-2023 at 07:26 PM..
8.82 percent vs 6.25 percent tax. Roughly 2.5 percent difference. That prevented you from moving to New York State ? With a progressive Tax at the brackets you mention for a married couple it’s an extra 6000-9000.
Look into property tax/school tax depending on where in New York State that blows your 2.5 percent income tax difference out the window.
Your property tax as a middle class resident on Long Island can be double your state income tax bill.
The vast majority of our income falls into the 5.85% bracket, so yes that does sound a lot better to us than the 8.82% I thought we'd have to pay. It wasn't necessary going to stop us from moving there, we were inching toward the decision, but now that I finally got the real numbers we're more motivated and enthusiastic about the prospect.
I have a particular aversion to income tax as opposed to other taxes, but I also have my limits regarding property taxes. Thankfully there are nice places to live in NY with lower property taxes. Also some opportunities to buy a home in a price range that even if the tax rate is a bit high the total property tax won't be all that much.
The vast majority of our income falls into the 5.85% bracket, so yes that does sound a lot better to us than the 8.82% I thought we'd have to pay. It wasn't necessary going to stop us from moving there, we were inching toward the decision, but now that I finally got the real numbers we're more motivated and enthusiastic about the prospect.
I have a particular aversion to income tax as opposed to other taxes, but I also have my limits regarding property taxes. Thankfully there are nice places to live in NY with lower property taxes. Also some opportunities to buy a home in a price range that even if the tax rate is a bit high the total property tax won't be all that much.
Guess it can’t hurt. Come on down and help contribute. Any tax payer counts. Budget deficit keeps ballooning.
“PUBLISHED 6:13 AM ET JUN. 12, 2023
Budget gaps in New York are expected to reach a combined $36 billion over the next three years, $15 billion higher than initially anticipated.
The reason is age-old for state government: Tax revenue is down and spending is up.
Don’t worry, governor c-word is up to all hours of the night trying figure out ways to make money via new taxes and fees. NY is going down the tubes financially and Albany is in panic mode. Prepare to be prison raped repeatedly over the next few years.
The vast majority of our income falls into the 5.85% bracket, so yes that does sound a lot better to us than the 8.82% I thought we'd have to pay. It wasn't necessary going to stop us from moving there, we were inching toward the decision, but now that I finally got the real numbers we're more motivated and enthusiastic about the prospect.
I have a particular aversion to income tax as opposed to other taxes, but I also have my limits regarding property taxes. Thankfully there are nice places to live in NY with lower property taxes. Also some opportunities to buy a home in a price range that even if the tax rate is a bit high the total property tax won't be all that much.
If you click on the Complete Listing by Affordability Rank, you'll see that many Upstate areas are high on the list in relation to Median family Income and Median Home Sales Price for the 2nd Quarter of 2023.
Don't forget the green energy agenda that will drive up your electric bill. NYS has a one party government with veto proof majorities and cutting spending and fiscal reform are not a high priority. There are also differences in deductions from other states. Property taxes are not going down. My tax bill on a 240k, 1800sq ft 3/1.5 colonial was 8700. The same house in Florida is around 1800 plus it cannot increase more than 3%/year, while in NYS if your house increases in value your taxes will surely follow.
Don't forget the green energy agenda that will drive up your electric bill. NYS has a one party government with veto proof majorities and cutting spending and fiscal reform are not a high priority. There are also differences in deductions from other states. Property taxes are not going down. My tax bill on a 240k, 1800sq ft 3/1.5 colonial was 8700. The same house in Florida is around 1800 plus it cannot increase more than 3%/year, while in NYS if your house increases in value your taxes will surely follow.
Keep in mind Tsitsipas that with that Housing Opportunity Index, it does take property tax into consideration and that what you can get for a certain price in another state/area may be less than what you can get in areas Upstate. I say that due to this information, also from the 2nd Quarter of this year: https://www.nar.realtor/research-and...-affordability
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