What's happening
This bill imposes an additional tax on long-term capital gains and certain investment income for high-earning New York residents.
Why it matters
Targets high-income earners by introducing new tax brackets on investment income. The bill creates additional tax rates (7.5% and 15%) on long-term capital gains and certain investment income for individuals whose New York taxable income exceeds specific thresholds, meaning the impact is concentrated on wealthier residents.
Phased-in tax increases to avoid sharp cliffs. The additional tax amounts are phased in gradually over the first $50,000 or $100,000 above the income thresholds, reducing the likelihood of sudden, steep tax increases for those just crossing the limits.
Broad definition of ‘low-taxed investment income’. The tax applies not only to long-term capital gains but also to dividends and other income types taxed at preferential federal rates, potentially expanding the reach beyond just stock or asset sales.
Potential implications for revenue and migration. By increasing the tax burden on investment income, the bill could generate significant new state revenue but may also raise concerns about high earners relocating or shifting investment strategies to minimize their tax liabilities.
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Who cares
Headline styles
Tax Capital Gains More
Plain English, a few words. Used as the page title.
Sponsors
Assembly Member · Assembly District 40
31 Co-sponsors
- Jessica Gonzalez-Rojas
- Sarahana Shrestha
- Dana Levenberg
- Steven Raga
- Phara Souffrant Forrest
- Robert C. Carroll
- Linda Rosenthal
- Chantel Jackson
- Tony Simone
- Karines Reyes
- Rebecca Seawright
- Rodneyse Bichotte Hermelyn
- Demond Meeks
- Nader Sayegh
- MaryJane Shimsky
- Harvey Epstein
- Maritza Davila
- Anna Kelles
- Claire Valdez
- Catalina Cruz
- Al Taylor
- William Colton
- Phil Steck
- Khaleel Anderson
- Grace Lee
- Jordan Wright
- Gabriella Romero
- Sarah Clark
- Diana Moreno
- Manny De Los Santos
- Michaelle C. Solages
1 Multi-sponsor
History
- Referred to ways and means
- Referred to ways and means
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Tax Capital Gains More
In Senate Committee · Budget And Revenue · Sponsor Gustavo Rivera
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
676
2025-2026 Regular Sessions
IN ASSEMBLY (Prefiled)
January 8, 2025
Introduced by M. of A. KIM, GONZALEZ-ROJAS, SHRESTHA, LEVENBERG, RAGA, MAMDANI, FORREST, R. CARROLL, ROSENTHAL, JACKSON, SIMONE, REYES, SEAWRIGHT, BICHOTTE HERMELYN, MEEKS, SAYEGH, SHIMSKY, EPSTEIN, DAVILA, KELLES -- Multi-Sponsored by -- M. of A. SIMON -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to imposing an additional tax on income attributable to long-term capital gain
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The tax law is amended by adding a new section 601-b to read as follows:
§ 601-b. Additional tax on low-taxed investment income. (a) There is hereby imposed, in addition to the tax imposed under section six hundred one of this article, an additional tax on low-taxed investment income.
(b) As used in this section, low-taxed investment income shall mean the amount of an individual's New York taxable income attributable to long-term capital gain, dividends, or any other type of income taxed under the rates of section 1(h) of the internal revenue code, or any successor provision thereto.
(c) The additional tax imposed under this section shall be equal to:
(1) in the case of a resident married individual who makes a single return jointly with the individual's spouse under subsection (b) of section six hundred fifty-one of this article, and in the case of every resident surviving spouse:
(A) if New York taxable income is over five hundred thousand dollars, seven and one-half percent of New York taxable income from long-term capital gain, which tax shall be phased in proportionally over the first fifty thousand dollars of New York taxable income in excess of five hundred thousand dollars; and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00237-01-5
(B) if New York taxable income is over one million dollars, fifteen percent of New York taxable income from long-term capital gain, which tax shall be phased in proportionally, beginning with a phase-in fraction of fifty percent, over the first one hundred thousand dollars of New York taxable income in excess of one million dollars; and
(2) in the case of a resident head of household:
(A) if New York taxable income is over five hundred thousand dollars, seven and one-half percent of New York taxable income from long-term capital gain, which tax shall be phased in proportionally over the first fifty thousand dollars of New York taxable income in excess of five hundred thousand dollars; and
(B) if New York taxable income is over one million dollars, fifteen percent of New York taxable income from long-term capital gain, which tax shall be phased in proportionally, beginning with a phase-in fraction of fifty percent, over the first one hundred thousand dollars of New York taxable income in excess of one million dollars; and
(3) in the case of a residential individual who is not a married individual or who makes a single return jointly with their spouse under subsection (b) of section six hundred fifty-one of this article or a resident head of household or a resident surviving spouse, and in the case of a resident estate and trust:
(A) if New York taxable income is over four hundred thousand dollars, seven and one-half percent of New York taxable income from long-term capital gain, which tax shall be phased in proportionally over the first fifty thousand dollars of New York taxable income in excess of four hundred thousand dollars; and
(B) if New York taxable income is over eight hundred thousand dollars, fifteen percent of New York taxable income from long-term capital gain, which tax shall be phased in proportionally, beginning with a phase-in fraction of fifty percent, over the first one hundred thousand dollars of New York taxable income in excess of eight hundred thousand dollars.
(d) This section shall be administered, and penalties imposed, in the same manner as the tax imposed under section six hundred one of this article.
(e) The department may adopt rules and regulations as necessary to implement the provisions of this section.
§ 2. This act shall take effect immediately.
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.