Attn: High Net Worth NY Taxpayers
If you have a home in the Hamptons, you may want to read on. If you are a NYC resident, you definitely should read on.
Here are some recent updates to the NY Budget:1. Increased Personal Income Tax Rates
- increased rate to 9.65% from 8.82% for individuals making over $1 mil ($2 mil if filing joint)
- 2 new brackets: 10.30% on income over $5 mil, 10.90% on income over $25 mil
- total tax of 14.766% for NYC residents
- highest combined state and local personal income tax rates taxes in the country
2. Increased Business Tax Rates
- article 9A taxpayers (more than $5 mil in business income) tax rate will increase to 7.25% from 6.5%
- total business tax of 18.275% tax when combined with NYC rates
3. Pass-through Entity Tax
- $10,000 SALT cap workaround
- pass through entities, NY S-Corps
- can elect to pay 6.85% tax on NY-sourced income under $2 mil (above $2 mil, rates follow new personal income tax rates)
- partners, members, S-corp shareholders receive credit for share of PTE tax paid
Call one of our knowledgeable CPA's to discuss how these changes will impact you and your business!