What's happening
This bill increases the New York state personal income tax deduction for medical expenses starting in 2025.
Why it matters
Expands eligibility for medical expense deductions. by allowing taxpayers to deduct medical expenses (including insurance premiums and long-term care insurance) that exceed 2.5% of their federal adjusted gross income—lowering the threshold from what is required under federal rules, so more people may qualify for the deduction.
Could result in significant tax relief. for individuals and families with high out-of-pocket health costs, making healthcare more affordable and helping those who spend a substantial portion of their income on medical care.
Encourages purchase of health and long-term care insurance. by including premiums as deductible expenses, potentially increasing coverage rates and financial protection against health emergencies among New Yorkers.
May have fiscal implications for the state budget. as increased deductions could reduce state income tax revenues, potentially affecting funding available for public services unless offset by other measures.
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Who cares
Headline styles
Increase Medical Tax Deduction
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to ways and means
- Referred to ways and means
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1048
2025-2026 Regular Sessions
IN ASSEMBLY
January 8, 2025
Introduced by M. of A. RAMOS -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to providing for an increased state personal income tax deduction for medical expenses
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subsection (d) of section 615 of the tax law is amended by adding a new paragraph 2-a to read as follows:
(2-a) for taxable years beginning on or after January first, two thousand twenty-five, an amount equal to the amount expended by a taxpayer for qualifying medical expenses as determined pursuant to this paragraph. Qualifying medical expenses shall be calculated by (a) multiplying a taxpayer's federal adjusted gross income by two and one-half percent; and then (b) subtracting the amount determined in subparagraph (a) of this paragraph from the total amount expended by a taxpayer during the tax year for all medical related expenses including premiums paid for health and accident insurance, and long term care insurance; and
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00389-01-5
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.