What's happening
This bill increases and restructures New York State income tax rates, creating new higher tax brackets for top earners.
Why it matters
Significantly increases top marginal tax rates for high-income earners. , introducing new brackets that reach up to 24% for individuals with taxable incomes above $20 million. This is a major jump from the current top rate of 10.9%, potentially making New York’s rates among the highest in the nation.
Creates more finely graduated tax brackets for high earners. , replacing former wide brackets (e.g., $2.15M–$5M, $5M–$25M, $25M+) with several new brackets between $500,000 and $20 million. This means tax obligations will increase more quickly as income rises, rather than remaining flat within broad bands.
Reduces or eliminates certain existing tax benefits and phase-outs at lower thresholds. , lowering the income levels at which tax table benefits phase out (e.g., from $2 million to $500,000 for some calculations), which could result in higher effective tax rates for upper-middle-income earners, not just the ultra-wealthy.
Accelerates the implementation of these changes to tax years beginning after 2025. , rather than waiting until previously scheduled later dates, meaning affected taxpayers will see changes to their liabilities sooner. This could have implications for tax planning, business decisions, and individual migration choices.
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Who cares
Headline styles
Raise Taxes on Millionaires
Plain English, a few words. Used as the page title.
Sponsors
24 Co-sponsors
- Jabari Brisport
- Samra Brouk
- Cordell Cleare
- Leroy Comrie
- Jeremy Cooney
- Nathalia Fernandez
- Michael Gianaris
- Kristen Gonzalez
- Andrew Gounardes
- Michelle Hinchey
- Brad Hoylman-Sigal
- John Liu
- Rachel May
- Zellnor Myrie
- Kevin S. Parker
- Jessica Ramos
- Gustavo Rivera
- Julia Salazar
- James Sanders Jr.
- Luis R. Sepúlveda
- José M. Serrano
- Toby Ann Stavisky
- Lea Webb
- April Baskin
History
- Referred to budget and revenue
- Referred to budget and revenue
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.
Raise Taxes on Top Incomes
In Assembly Committee · Ways And Means · Sponsor Demond Meeks
Full text
13 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1622
2025-2026 Regular Sessions
IN SENATE
January 13, 2025
Introduced by Sens. JACKSON, BRISPORT, BROUK, CLEARE, COMRIE, COONEY, FERNANDEZ, GIANARIS, GONZALEZ, GOUNARDES, HINCHEY, HOYLMAN-SIGAL, LIU, MAY, MYRIE, PARKER, RAMOS, RIVERA, SALAZAR, SANDERS, SEPULVEDA, SERRA- NO, STAVISKY, WEBB -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue
AN ACT to amend the tax law, in relation to extending the top state income tax rate; and to repeal certain provisions of such law related thereto
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Clauses (vi) and (vii) of subparagraph (B) of paragraph 1 of subsection (a) of section 601 of the tax law, as amended by section 1 of subpart A of part A of chapter 59 of the laws of 2022, are amended to read as follows:
(vi) For taxable years beginning in two thousand twenty-three [and before two thousand twenty-eight] the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over
$17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over
$23,600 Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over
$27,900 Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess over
$161,550 Over $323,200 but not over $18,252 plus 6.85% of excess over $2,155,350 $323,200 Over $2,155,350 but not over $143,754 plus 9.65% of excess over $5,000,000 $2,155,350 Over $5,000,000 but not over $418,263 plus 10.30% of excess over
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03886-01-5
$25,000,000 $5,000,000 Over $25,000,000 $2,478,263 plus 10.90% of excess
over $25,000,000
(vii) For taxable years beginning after two thousand [twenty-seven] twenty-five the following rates shall apply: If the New York taxable income is: The tax is: Not over $17,150 4% of the New York taxable income Over $17,150 but not over $23,600 $686 plus 4.5% of excess over
$17,150 Over $23,600 but not over $27,900 $976 plus 5.25% of excess over
$23,600 Over $27,900 but not over $161,550 $1,202 plus 5.5% of excess over
$27,900 Over $161,550 but not over $323,200 $8,553 plus 6.00% of excess
over $161,550 Over $323,200 but not over $18,252 plus 6.85% of excess [$2,155,350] $500,000 over $323,200 [Over $2,155,350 $143,754 plus 8.82% of excess
over $2,155,350] Over $500,000 but not over $700,000 $30,363 plus 7.50% of
excess over $500,000 Over $700,000 but not over $900,000 $45,363 plus 8.00% of
excess over $700,000 Over $900,000 but not over $61,363 plus 9.00% of excess $1,000,000 over $900,000 Over $1,000,000 but not over $70,363 plus 10.00% of excess $2,000,000 over $1,000,000 Over $2,000,000 but not over $170,363 plus 12.00% of $3,000,000 excess over $2,000,000 Over $3,000,000 but not over $290,363 plus 14.00% of $4,000,000 excess over $3,000,000 Over $4,000,000 but not over $430,363 plus 16.00% of $5,000,000 excess over $4,000,000 Over $5,000,000 but not over $590,363 plus 18.00% of $10,000,000 excess over $5,000,000 Over $10,000,000 but not over $1,490,363 plus 20.00% of $15,000,000 excess over $10,000,000 Over $15,000,000 but not over $2,490,363 plus 22.00% of $20,000,000 excess over $15,000,000 Over $20,000,000 $3,590,363 plus 24.00% of
excess over $20,000,000
§ 2. Clauses (vi) and (vii) of subparagraph (B) of paragraph 1 of subsection (b) of section 601 of the tax law, as amended by section 2 of subpart A of part A of chapter 59 of the laws of 2022, are amended to read as follows:
(vi) For taxable years beginning in two thousand twenty-three [and before two thousand twenty-eight] the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $17,650 $512 plus 4.5% of excess over
$12,800 Over $17,650 but not over $20,900 $730 plus 5.25% of excess over
$17,650 Over $20,900 but not over $107,650 $901 plus 5.5% of excess over
$20,900 Over $107,650 but not over $269,300 $5,672 plus 6.00% of excess over
$107,650 Over $269,300 but not over $15,371 plus 6.85% of excess over $1,616,450 $269,300 Over $1,616,450 but not over $107,651 plus 9.65% of excess over $5,000,000 $1,616,450 Over $5,000,000 but not over $434,163 plus 10.30% of excess over $25,000,000 $5,000,000 Over $25,000,000 $2,494,163 plus 10.90% of excess over
$25,000,000
(vii) For taxable years beginning after two thousand [twenty-seven] twenty-five the following rates shall apply: If the New York taxable income is: The tax is: Not over $12,800 4% of the New York taxable income Over $12,800 but not over $512 plus 4.5% of excess over $17,650 $12,800 Over $17,650 but not over $730 plus 5.25% of excess over $20,900 $17,650 Over $20,900 but not over $901 plus 5.5% of excess over $107,650 $20,900 Over $107,650 but not over $5,672 plus 6.00% of excess $269,300 over $107,650 Over $269,300 but not over $15,371 plus 6.85% of excess [$1,616,450] $500,000 over $269,300 [Over $1,616,450] [$107,651 plus 8.82% of excess
over $1,616,450] Over $500,000 but not over $700,000 $30,363 plus 7.50%
of excess over $500,000 Over $700,000 but not over $900,000 $45,363 plus 8.00% of
excess over $700,000 Over $900,000 but not over $61,363 plus 9.00% of excess $1,000,000 over $900,000 Over $1,000,000 but not over $70,363 plus 10.00% of excess $2,000,000 over $1,000,000 Over $2,000,000 but not over $170,363 plus 12.00% of $3,000,000 excess over $2,000,000 Over $3,000,000 but not over $290,363 plus 14.00% of $4,000,000 excess over $3,000,000 Over $4,000,000 but not over $430,363 plus 16.00% of $5,000,000 excess over $4,000,000 Over $5,000,000 but not over $590,363 plus 18.00% of $10,000,000 excess over $5,000,000 Over $10,000,000 but not over $1,490,363 plus 20.00% of $15,000,000 excess over $10,000,000 Over $15,000,000 but not over $2,490,363 plus 22.00% of $20,000,000 excess over $15,000,000 Over $20,000,000 $3,590,363 plus 24.00% of
excess over $20,000,000
§ 3. Clauses (vi) and (vii) of subparagraph (B) of paragraph 1 of subsection (c) of section 601 of the tax law, as amended by section 3 of subpart A of part A of chapter 59 of the laws of 2022, are amended to read as follows:
(vi) For taxable years beginning in two thousand twenty-three [and before two thousand twenty-eight] the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over
$8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over
$11,700 Over $13,900 but not over $80,650 $600 plus 5.50% of excess over
$13,900 Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess over
$80,650 Over $215,400 but not over $12,356 plus 6.85% of excess over $1,077,550 $215,400 Over $1,077,550 but not over $71,413 plus 9.65% of excess over $5,000,000 $1,077,550 Over $5,000,000 but not over $449,929 plus 10.30% of excess over $25,000,000 $5,000,000 Over $25,000,000 $2,509,929 plus 10.90% of excess over
$25,000,000
(vii) For taxable years beginning after two thousand [twenty-seven] twenty-five the following rates shall apply: If the New York taxable income is: The tax is: Not over $8,500 4% of the New York taxable income Over $8,500 but not over $11,700 $340 plus 4.5% of excess over
$8,500 Over $11,700 but not over $13,900 $484 plus 5.25% of excess over
$11,700 Over $13,900 but not over $80,650 $600 plus 5.50% of excess over
$13,900 Over $80,650 but not over $215,400 $4,271 plus 6.00% of excess
over $80,650 Over $215,400 but not over $12,356 plus 6.85% of excess [$1,077,550] $450,000 over $215,400 [Over $1,077,550 $71,413 plus 8.82% of excess
over $1,077,550] Over $450,000 but not over $600,000 $26,938 plus 7.50%
of excess over $450,000 Over $600,000 but not over $700,000 $38,188 plus 8.00% of
excess over $600,000 Over $700,000 but not over $800,000 $46,188 plus 8.50% of
excess over $700,000 Over $800,000 but not over $900,000 $54,688 plus 9.00% of
excess over $800,000 Over $900,000 but not over $63,688 plus 10.00% of excess $1,000,000 over $900,000 Over $1,000,000 but not over $73,188 plus 11.00% of excess $2,000,000 over $1,000,000 Over $2,000,000 but not over $183,188 plus 12.00% of $3,000,000 excess over $2,000,000 Over $3,000,000 but not over $303,188 plus 14.00% of $4,000,000 excess over $3,000,000 Over $4,000,000 but not over $443,188 plus 16.00% of $5,000,000 excess over $4,000,000 Over $5,000,000 but not over $543,188 plus 18.00% of $10,000,000 excess over $5,000,000 Over $10,000,000 but not over $1,443,188 plus 20.00% of $15,000,000 excess over $10,000,000 Over $15,000,000 but not over $2,443,188 plus 22.00% of $20,000,000 excess over $15,000,000 Over $20,000,000 $3,543,188 plus 24.00% of
excess over $20,000,000
§ 4. Subparagraphs (D), (E), (F), (G) and (H) of paragraph 1 of subsection (d-1) of section 601 of the tax law, subparagraphs (D), (E) and (H) as amended and subparagraphs (F) and (G) as added by section 4 of part A of chapter 59 of the laws of 2021, are amended and six new subparagraphs (I), (J), (K), (L), (M) and (N) are added to read as follows:
(D) The tax table benefit is the difference between (i) the amount of taxable income set forth in the tax table in paragraph one of subsection (a) of this section not subject to the [8.82] 7.5 percent rate of tax for the taxable year multiplied by such rate and (ii) the dollar denominated tax for such amount of taxable income set forth in the tax table applicable to the taxable year in paragraph one of subsection (a) of this section less the sum of the tax table benefits in subparagraphs (A), (B) and (C) of this paragraph. The fraction for this subparagraph is computed as follows: the numerator is the lesser of fifty thousand dollars or the excess of New York adjusted gross income for the taxable year over [two million] five hundred thousand dollars and the denominator is fifty thousand dollars. This subparagraph shall apply only to taxable years beginning on or after January first, two thousand twelve and before January first, two thousand twenty-one [and for tax years beginning on or after January first, two thousand twenty-eight].
(E) The tax table benefit is the difference between (i) the amount of taxable income set forth in the tax table in paragraph one of subsection (a) of this section not subject to the [9.65] 8 percent rate of tax for the taxable year multiplied by such rate and (ii) the dollar denominated tax for such amount of taxable income set forth in the tax table applicable to the taxable year in paragraph one of subsection (a) of this section less the sum of the tax table benefits in subparagraphs (A), (B), [and] (C), and (D) of this paragraph. The fraction for this subparagraph is computed as follows: the numerator is the lesser of fifty thousand dollars or excess of New York adjusted gross income for the taxable year over [two million] seven hundred thousand dollars and the denominator is fifty thousand dollars. This subparagraph shall apply only to the taxable years beginning on or after January first, two thousand twenty-one [and before January first, two thousand twenty-eight].
(F) The tax table benefit is the difference between (i) the amount of taxable income set forth in the tax table in paragraph one of subsection (a) of this section not subject to the [10.30] 9 percent rate of tax for the taxable year multiplied by such rate and (ii) the dollar denominated tax for such amount of taxable income set forth in the tax table applicable to the taxable year in paragraph one of subsection (a) of this section less the sum of the tax table benefits in subparagraphs (A), (B), (C) and (E) of this paragraph. The fraction for this subparagraph is computed as follows: the numerator is the lesser of fifty thousand dollars or excess of New York adjusted gross income for the taxable year over [five million] nine hundred thousand dollars and the denominator is fifty thousand dollars. This subparagraph shall apply only to the taxable years beginning on or after January first, two thousand twenty-one [and before January first, two thousand twenty-eight].
(G) The tax table benefit is the difference between (i) the amount of taxable income set forth in the tax table in paragraph one of subsection (a) of this section not subject to the [10.90] 10 percent rate of tax for the taxable year multiplied by such rate and (ii) the dollar denominated tax for such amount of taxable income set forth in the tax table applicable to the taxable year in paragraph one of subsection (a) of this section less the sum of the tax table benefits in subparagraphs (A), (B), (C), (E) and (F) of this paragraph. The fraction for this subparagraph is computed as follows: the numerator is the lesser of fifty thousand dollars or excess of New York adjusted gross income for the taxable year over [twenty-five] one million dollars and the denominator is fifty thousand dollars. This subparagraph shall apply only to the taxable years beginning on or after January first, two thousand twenty-one [and before January first, two thousand twenty-eight].
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to extending the top state income tax rate; and to repeal certain provisions of such law related thereto
Purpose
The purpose of this legislation is to increase state tax revenues and reduce economic inequality by creating a fair and progressive personal income tax.
Summary of provisions
Sections 1, 2, 3, 4, 5, and 6 amend Section 601 of the Tax law to provide comprehensive progressive income tax reform. For married couples filing jointly, the following tax rates and brackets are imposed: 7.5% for incomes over $500,000; 8.0% for incomes over $700,000; 9.0% for incomes over $900,000; 10.0% for incomes over $1,000,000; 12.0% for incomes over $2,000,000; 14% for incomes over $3,000,000; 16% for incomes over $4,000,000; 18% for incomes over $5,000,000; 20% for incomes over $10,000,000; 22% for incomes over $15,000,000; and 24% for incomes over $20,000,000. The new rates and brackets for heads of house- hold conform to these new rates and brackets for married taxpayers filing jointly.
Read the full memo (945 words)
For single filers, the following tax rates and brackets are imposed: 7.5% for incomes over $450,000; 8.0% for incomes over $600,000; 8.5% for incomes over $700,000; 9.0% for incomes over $800,000; 10% for incomes over $900,000; 11% for incomes over $1,000,000; 12% for incomes over $2,000,000; 14% for incomes over $3,000,000; 16% for incomes over $4,000,000; 18% for incomes over $5,000,000; 20% for incomes over $10,000,000; 22% for incomes over $15,000,000; and 24% for incomes over $20,000,000.
Section 7 repeals subsection (d-4) of Section 601 of the Tax Law.
Section 8 is the effective date.
Justification
New York is an exceptionally wealthy state. Treated as a separate coun- try, it would have one of the world's largest economies. With such a strong economy, all New Yorkers should have fundamental economic rights: access to high-quality education, affordable healthcare, guaranteed housing, and basic social services and social insurance. New York must also finance investments in green energy, green jobs, and green infras- tructure to mitigate the catastrophic risks of climate change.
Unfortunately, New York is also the most unequal state in the nation. This is due in part because the tax system has not kept pace with chang- es in the economy, leaving the many high-earning professionals and weal- thy families in this state undertaxed. Economic growth from recent decades has overwhelmingly benefited a small segment of elites, while inflation-adjusted wages have stagnated for the vast majority of working people since the 1970s. The state government, lacking adequate tax revenues, has been unable to afford essential public investment and social spending, including upgrading our infrastructure, repairing public housing, sufficiently funding public education, and financing Medicaid. Too many years of allowing the wealthiest residents not to pay their fair share in taxes has thrown our state budget into a massive hole. The COVID-19 pandemic, which exacerbated existing budgetary chal- lenges, has shown just how urgently these reforms are needed.
Our state is in dire need of tax reform. The rich benefit from New York's workers, infrastructure, and communities, and have historically failed to reinvest in our state. To remedy the state's budgetary prob- lems and fairly distribute the tax burden, the personal income tax must be transformed into a meaningfully progressive tax.
Personal income tax is the state's largest source of revenue, but it is not a fair tax. The income tax rate is approximately a flat 6.5% for all taxpayers making less than $1 million per year, leaving Wall Street bankers bearing the same tax burden as working-class families. While it is widely observed that the rich pay a majority of the state's tax revenues, this is only because there are so many extraordinarily rich people in New York. Less discussed is that a flat tax rate is regres- sive: it places a disproportionate burden on the working class and middle class. When combined with the sales tax, an even more regressive tax that hits working people hardest, it makes for a state tax system that raises inadequate revenue, burdens working people and communities of color, exacerbates the racial wealth gap, and leaves the wealthy and the economic elite paying less than their fair share.
This bill reforms the personal income tax to make it a progressive tax. New rates are added for single taxpayers earning more than $450,000 per year, and married taxpayers earning more than $500,000. The tax increases for these brackets are just .065%. Additional brackets are added in roughly $100,000 increments, with 0.5% tax increases per brack- et, such that the tax rate rises to 11% for an individual making $1 million per year or a married couple making $2 million per year at 12%. The rates continue to rise, reaching 24% for an individual or married couple making $20 million per year. These changes do not burden the middle class. U.S. Census data shows the median household income in New York for 2021 to be approximately $75,00, which is far below the range in which these tax increases take effect. Moreover, even those taxpayers making $500,000 per year will only see a small increase in their tax rate.
These reforms do not just make the personal income tax fair. They dramatically increase its revenue raising power. A properly funded state government can protect the livelihoods of public sector workers, invest in infrastructure, and secure quality education, housing, and healthcare for all.
Legislative history
2023-2024: S.2059 - REFERRED TO BUDGET AND REVENUE/ A.3115 - referred to ways and means
2021-2022: S.2622 - Budget and Revenue/A.4604 - Referred to Ways and Means
State and local fiscal implications
To be determined.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.