What taxes are charged to New Yorkers

The end of 2020, which means that it is time to get ready to file a declaration for this year and pay taxes. The deadline for this, as usual, is April 15th. First, let's look at local taxes. New York State levies three main taxes: income, sales, and real estate. The state consistently leads the country in terms of these tax rates. The publication writes in detail about each of their types. The balance.

New York State Income Tax

Income tax rates in New York State since 2019 range from 4% to 8,82% - depending on the taxpayer's income. The lowest rate applies to the first $ 8 of taxable income for an individual filing an individual return. Then it gradually increases.

The highest rate of 8,82% applies to income in excess of $ 1 for individually filing payers.

These income thresholds vary for couples filing together. The first $ 17 of their total income is taxed at a 150% rate. Anything over $ 4 in the couple's joint income is taxed at a rate of 2%.

Government pensions and pensions paid by some government agencies are not taxable income in New York City.

Standard deductions

Standard deductions in New York depend on the filing format. As of 2021, for the declaration you file for 2020, they are:

• If you are filing an individual return, the standard deduction is $ 3.
• Married people filing together: $ 16.
• An additional $ 1000 can be deducted for each dependent.

Article Deductions

Line item deductions (English Itemized Deduction) are deductions from the taxpayer's adjusted gross income that cap the total tax liability. The amount of deductions is determined on the basis of expenses that were incurred during the year for which the declaration is submitted. Part of the expenses, according to tax legislation, can be deducted from taxes.

In New York, there are deductions or tax credits for college tuition fees or for contributions to Plan 529 (a plan to save money for college), for these contributions you can deduct up to $ 5 thousand for an individual filing of a return or up to 10 thousand for joint.

There are also several tax breaks for expenses like childcare and dependents.

Real Estate Taxes in New York

There is no tax on personal property in New York like vehicles or jewelry, but there is a tax on real estate. All property tax revenues go directly to the localities where the property is located to fund schools, police, fire brigades, road facilities and other services.

On the subject: States where Americans pay more and less taxes

Real estate tax rates are determined by localities and largely depend on the needs of their annual budgets. Counties in upstate New York have some of the highest property taxes in the United States.

Under state law, most counties and municipalities are required to assess property taxes as a percentage of the value of taxable property. The law does not establish what this share should be; it can vary from 5% to 99%, although it cannot be 100%. The law simply requires that all property be treated equally and paid equally.

Property Tax Benefits

State law allows localities to exempt senior citizens, veterans, and people with a documented disability from real estate tax.

The real estate tax exemption applies to residential property owners who use their property as their primary residence.

Sales taxes and others

New York State sales tax is set at 1% effective June 2005, 4, but local governments may increase it to 5%. The exceptions are food, prescription and over-the-counter drugs, and clothing and footwear under $ 110 per item.

The state levies a combined fuel tax, oil test levy, gasoline sales tax, and a fuel excise tax of 33,78 cents per gallon. The state tax and federal gasoline tax together are 52,18 cents per gallon as of 2020. Cigarette tax - $ 4,35 per pack containing 20 cigarettes.

New York State Total Tax Rate

New York still has some of the highest tax rates in the country. Its standard deductions are less than at the federal level:

• Profit tax rates: from 4% to 8,82%.
• Standard deductions: $ 3 to $ 100.
• Property tax rates: from 3,06% to 16% of its value.
• Sales tax: 4% (may be increased to 5% at the municipality level).