January 13, 2015

New York

State & Local Taxes in 2015


New York Tax Code Features

Progressive Features

• Graduated personal income tax structure

• Provides a refundable Earned Income Tax Credit (EITC) of 30 percent in New York State and an additional 5 percent in New York City

• Provides a refundable child tax credit

• Sales tax base excludes groceries

• Requires the use of combined reporting for the corporate income tax

Regressive Features

• Comparatively high combined state and local sales tax rates

• Comparatively high cigarette tax rate

Tax Changes Enacted in 2013 & 2014

• Temporary changes to personal income tax brackets and rates were extended through 2017

• Corporate income tax (CIT) rate reduced from 7.1 to 6.5 percent, bank tax collapsed into CIT; and zeroed out the CIT for manufacturers

• 3-year property tax rebate program will cut homeowners taxes (if in jurisdictions that impose a property tax cap)

ITEP Tax Inequality Index

According to ITEP’s Tax Inequality Index, New York has the 41st most unfair state and local tax system in the country. States with regressive tax struc­tures have negative tax inequality indexes, meaning that incomes are less equal in those states after state and local taxes than before (See Appendix B for state-by-state rankings and more details).

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