Cuomo Confirms ‘Historic’ Tax Cuts For Millions in New York
Cuomo adds the tax cuts will provide "much-needed relief by putting money back into the pockets" of millions of New Yorkers.
On Monday, Gov. Andrew Cuomo announced that the FY2022 budget continues support for middle-class income tax cuts to help New Yorkers recover from economic hardship during the COVID-19 pandemic.
In 2021, the fourth year of the multi-year tax cuts enacted in 2016, income tax rates have been lowered from 6.09% to 5.97% for taxpayers filing jointly in the $43,000-$161,550 income bracket, and from 6.41% to 6.33% in the $161,550-$323,200 income bracket. Over the first four years of the cuts, 4.8 million New Yorkers saved $6.6 billion, officials say.
"These tax cuts will provide much-needed relief by putting money back into the pockets of middle-class New Yorkers. There's no doubt that our state will bounce back stronger and better than before, and in the interim, it's critical we support the New Yorkers who helped get us through this crisis and take steps to rebuild an economy that works for all," Cuomo said.
The cuts, which were enacted in 2016 and are now in their fourth year, are expected to save 4.8 million New Yorkers more than $2.2 billion in 2021, officials say.
When the cuts are fully phased in, middle-class taxpayers will have received an income tax rate cut of up to 20 percent, saving six million filers a projected $4.2 billion per year by 2025, according to Cuomo.
As the new rates phase in, they will be the State's lowest middle-class tax rates in more than 70 years, officials add.
"We are taking a historic new step towards providing meaningful property tax relief to middle-class New Yorkers. Additionally, I am proud that this budget also delivers the promised middle-class income tax cuts. The Senate Majority fought long and hard to bring this relief to homeowners, especially those paying the highest amount of their income into their property taxes. Now, over a million hard-working New Yorkers will receive this relief," Senate Majority Leader Andrea Stewart-Cousins said.
The budget also provides a personal income tax credit for New York resident homeowners with incomes up to $250,000 if their total property tax exceeds a fixed percentage of their income. This framework targets New York families with the highest property tax to income burden. The calculation of this credit is capped at $350 per STAR-eligible household, while also utilizing a $250 credit minimum to further target homeowners impacted the most by high property taxes. It is expected that claims will average about $340 for 1.1 million New Yorkers, providing over $382 million in total savings. Qualified homeowners will be able to claim this new Property Tax Relief credit for taxable years 2021, 2022, and 2023.