The budget lowers Personal Income Tax rates for middle class New Yorkers.
- With the middle class tax cuts of 2012, rates were lowered from 6.85 percent to 6.45 percent for taxpayers in the $40,000-$150,000 income bracket, and to 6.65 percent in the $150,000- $300,000 income bracket.
- Under these new reforms, the rate will drop even further beginning in 2018 and will continue to drop all the way to 5.5 percent when the cuts are fully phased in.
- These new lower tax rates will save middle class New Yorkers nearly $6.6 billion in just the first four years, with annual savings reaching $4.2 billion by 2025.
- As the new rates phase in, they will be the state’s lowest middle class tax rates in more than 70 years.
- When the tax cuts begin, they will benefit 4.4 million filers, growing to 6 million filers when fully phased in