Governor Cuomo and New York Legislature Agree to Tax Reform Measures
December 9, 2011
After a marathon legislative session Wednesday night, New York State’s Legislature passed Governor Cuomo’s plan to jumpstart New York’s economy.
Changes, effective for tax years beginning after December 31, 2011, include raising the personal income tax rates on households earning more than $2 million annually, and cutting tax rates for those earning less than $300,000 annually to their lowest level in more than 50 years. The new tax brackets will be as follows:
|Income Level||New Tax Rate|
|$300,000–$2 Million||6.85 percent|
|More than $2 Million||8.82 percent|
Also effective December 31, 2011, businesses with annual payrolls of less than $1.25 million will not have to pay the MTA payroll tax, an additional tax on the salary of every employee whether they used mass transit or not. Companies with less than $1.75 million in payroll will pay lower MTA payroll tax rates.