Arab Press

بالشعب و للشعب
Sunday, Aug 10, 2025

NYC millionaires will soon pay the highest tax rate in the nation

NYC millionaires will soon pay the highest tax rate in the nation

The top sliver of wealthy New Yorkers will soon face the highest combined state and city tax rate in the country.

The top sliver of wealthy New Yorkers will soon face the highest combined state and city tax rate in the country under a new agreement between Gov. Andrew Cuomo and Democratic legislative leaders.

The State Assembly and Senate struck a deal this week to hike taxes on New Yorkers worth more than $1 million, part of a broader $212 billion budget plan that will generate an additional $3.4 billion for the state.

The state will temporarily establish two new personal income tax brackets: 10.3% of income for earnings between $5 million and $25 million, and 10.9% for income over $25 million. The new rates are scheduled to expire at the end of 2027. Rates will also increase to 9.65% (from the current levy of 8.82%) for individuals earning more than $1 million.

The city's high-income earners could pay between 13.5% to 14.8% in state and city taxes, when factoring in New York City's top income tax rate of 3.88% – more than the top marginal income tax rate of 13.3% in California, which is currently the highest in the nation.

The tax will hit about 123,000 individuals statewide, and just 15,165 individuals living in New York City, according to 2019 tax return data from New York City’s Independent Budget Office. Only 529 households will pay the highest rate.

Although Cuomo has resisted such a move for years – he's repeatedly argued that high taxes will force wealthy New Yorkers to flee the state – the embattled governor has seen his influence wane in recent months amid a slew of sexual harassment allegations.

Lawmakers proposed the tax hikes even though New York will get about $23.5 billion from the coronavirus relief bill that President Biden signed into law in mid-March. The state government will get about $12.7 billion, while New York City will receive an estimated $6.1 billion. The state's counties will get about $3.9 billion, while $825 million will go to small cities, towns and villages in the state.

New York is grappling with a $14.5 billion pandemic-induced budget deficit and has been urged by a group of economists and progressive lawmakers to raise taxes on billionaires to address the looming financial crisis.

But critics have warned that raising taxes could cause high-income earners who fled New York during the coronavirus pandemic to leave permanently.

"The combined top individual income tax rate will be nearly 15% in New York City and the combined top corporate income tax rate will be over 16%," Jared Walczak, vice president of state projects with the Center for State Tax Policy at the Tax Foundation, said. "If New York cares about ensuring people and businesses return, they sure aren't showing it."

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Germany Seeks Taliban Deal to Deport Afghan Migrants
Emirates Airline Expands Market Share with New $20 Million Campaign
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Qatar Airways Clears Backlog of Passengers Following Missile Threats
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
×