The tax rates in the US vary from one state to another. Compared to other states, the tax rates in New York are not just the highest, but the tax schemes are also one of the most complicated. If you live in this state, you will need to pay three primary taxes that include a) income tax, b) sales tax and c) property tax. In addition to these, there is one more tax the state of New York levies: the estate tax. If you are a resident of New York, you should have proper knowledge of all types of taxes, how tax rates apply and how the tax system actually works in the state.
Based in New York, Bronx Tax Services regularly provides information and assistance to anyone who looks for detailed knowledge of state tax rates, business taxes, New York sales tax, New York estate and inheritance taxes etc. Below is some of the most useful information about state taxes.
The income tax rates in New York start from 4% and go up to 10.9%, applicable for the current tax year. Before April 2021, the maximum income tax rate imposed by the state on taxpayers was 8.82%. As a result of a new legislation, the rates went up to 10.9%, effective from 2021. You should remain informed that these tax rates will remain applicable through to tax year 2027.
Different tax rate slabs apply based on whether you file your income taxes individually or jointly. If your annual income crosses $25 million, the highest rate of 10.9% will be levied in your particular case.
The standard or flat deduction is a part of your income that is not subject to taxation. This means you can use such deductions to reduce your tax bill. If you live in the state of New York, the deductions will vary depending on your specific filing status such as single, dependent, married, widow etc.
If you are single and dependent on someone else’s federal tax return, you will be able to claim a standard deduction of $3,100. If you are single and not dependent on someone else’s federal tax return, the deduction amount is $8,000. The head of a household will get a deduction of $11,200. The deduction amounts for those married and filing jointly and those married and filing separately are $16,050 and $8,000 respectively. Qualifying widow(er) will get a deduction of $16,050.
For more details on these standard tax deductions, feel free to get in touch with one of our highly experienced tax consultants at SCL Tax Services in and near Bronx, NY.
These deductions provide a surefire way to decrease a taxpayer’s taxable income and are claimable in lieu of a standard deduction. If you file your tax return in New York, you will be able to use most of the itemized deductions used for federal purposes. New York state law allows deductions for things such as college tuition, medical expenses, job expenses, mortgage expenses paid, charitable gifts and theft losses as well as the contributions to New York state 529 plan.
Taxpayers in New York can avail themselves of a number of tax credits including earned income tax credit, household tax credit, child and dependent care credit, college tuition tax credit etc. To find out how each of these credits is worth up to and tax help, get in touch with our tax office.
Personal assets such as vehicles and jewelry are not subject to taxation. The state of New York imposes property tax on real estate. These taxes are paid to counties, cities and school districts and the tax revenues are used to fund a wide range of local services. The assessment of property taxes is done as per the New York state law. In general, property taxes are higher for the owners of more valuable properties and lower for less valuable properties.
As per New York state law, senior citizens, veterans and disabled persons get property tax exemptions. Enhanced STAR exemption is available for senior citizens who are aged 65 years and above.
There is a difference between the estate tax and the inheritance tax. New York estate tax is assessed based on the overall value of the deceased person’s estate. The main criteria for this is that the deceased property owner has to be a resident of the state of New York. Estates whose overall value is assessed to be equal to or less than $5,930,000 are exempt from this tax, for deaths that happen on and from January 1, 2021 to January 1, 2022.
Estate tax rates imposed on small-size estates vary between 3.06% and 15.2%. The highest estate tax rate was 16% in 2021.
New York sales tax is imposed at the rate of 4%. Add to it the local taxes levied in the jurisdiction where the sale or other translation or use take place. Municipalities can increase the sales tax by up to 8.88%. Products such as food, prescription and non-prescription drugs are not taxable.
Other types of sales tax that the state enforces include motor fuel excise tax, petroleum business tax and petroleum testing fee.
If you have a question in regard to various New York income, business and sales taxes or look for expert tax advice, you should head over to SCL Tax Services in and near Bronx, NY. Our tax professionals will answer your key questions as well as help you with your tax problems. We provide payroll service, bookkeeping service, tax accounting and many other services at our tax office. If you are faced with an IRS trouble you can’t handle on your own, our experts will deal with and resolve the matter in a professional manner while protecting your best interests.
We are here to relieve you of the tax pressure by offering a wide range of Tax Services In & Near Bronx, NY. If you need expert advice or need us to complete your taxes, we will provide it for you. We know you work hard, so we work hard to serve your needs.Your time is valuable, which is why we are here for you.