As one of the most expensive states to live in, New York was, unsurprisingly, also the state with the highest total tax burden for taxpayers in 2016 according to Wallet Hub. A large portion of that tax burden is dedicated to personal income taxes and followed by property taxes.
Whether you live in New York City, Brooklyn or Syracuse, you’ll need to account the various state and federal taxes into your budget, including everyday sales and gasoline taxes. It can be easy to get lost in all of the taxes you’ll owe. LawInfo’s New York tax law articles can help you become familiar with the various taxes to avoid penalties.
In New York, taxpayers pay personal income taxes according to an eight-bracketed progressive rate system. Each bracket comprises of a personal or jointly filed marriage income dollar range and a specific tax percentage rate.
In 2017, the income tax rates range from four percent for the lowest tier to 8.82 percent for the highest tier. New York City and Yonkers both have their own progressive income tax bracket systems.
New York provides tax tables for the state, New York City and Yonkers to help you find your approximate income tax payment amount.
All goods and services bought or used in New York are subject to state sales and use taxes plus local jurisdiction tax rates. New York’s sales and use tax rate is four percent as of 2017. Any sales made within the Metropolitan Commuter Transportation District are subject to an additional 0.375 percent sales tax.
A use tax is similar to a sales tax. Products or services that are bought out of state without paying the New York sales tax and are then used in New York are subject to a use tax.
New York is among the top 10 states with the highest property tax rates in 2017, according to WalletHub. Despite this, some homeowners can reduce their property tax bill using state exemptions. Your property tax bill is based on an assessment of your property’s value. Property tax exemptions lower the assessment value, hence lowering your tax bill.
The available state property tax exemptions include: