Tax Cuts Expected to Save Millions of New Yorkers More Than $2 Billion This Year
Tax cuts are coming that will save nearly 5 million New Yorkers more than $2 billion this year, or so says the Governor.
Governor Andrew Cuomo announced the 2022 budget calls for middle class income tax cuts to help New Yorkers recover from economic hardship during the COVID-19 pandemic. Cuomo says the cuts, which were enacted in 2016, are expected to save 4.8 million New Yorkers more than $2.2 billion in 2021. 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. The Governor calsl the phased in rates, the lowest middle-class tax rates in the state in more than 70 years.
So how big are these cuts? 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. Not enough of a cut to make much difference with prices increasing on everything from groceries to gas.
"Throughout the entire COVID-19 pandemic, it has become more and more difficult for many hardworking New Yorkers to pay their bills and support their families," Governor Cuomo said. "As we continue to jumpstart our economic recovery, reopen our society safely and build a brighter future for our children, 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."
The budget also provides a personal income tax credit for New York homeowners with incomes up to $250,000 if their total property tax exceeds a fixed percentage of their income.