For those moving to the state of New York or are not yet familiar with the NY State taxes, this is a good reading material. Visitors of New York will also find this article about NY State taxes helpful.
First thing you may want to know about the NY State taxes is the prevailing sales tax. The State of New York has a sales tax of 4 percent as of 2005, June 1. However, local rates may vary. There are some cities or districts that have additional local sales tax that can add up to 7 percent in some areas. To know the exact rate for the city or district you are visiting or will be residing, read the Publication 750 of the state’s official website on the Department of Revenue or taxation.
For residents and would be residents of New York, you are probably most worried about the NY State taxes pertaining to the income tax. Currently, the tax rates for such range from 4 to 6.85 percent. The state has five income brackets that you should be aware of. They make use of a progressive, five-bracket system as shown below.
For single taxpayers and married couples who file separately, the rates are as follows:
• 4% on the first $8,000 of taxable income
• 4.5% on taxable income between $8,001 and $11,000
• 5.25% on taxable income between $11,001 and $13,000
• 5.9% on taxable income between $13,001 and $20,000
• 6.85% on taxable income of $20,001 and above.
Married couples who are filing joint returns, the rates are still the same however the income brackets are doubled.
As you are aware of the increasing living expenses in the state, the income tax credit in New York has also increased to compensate for that. The percentage for income tax credit in New York is now 30 percent of the federal credit. It can help offset the Social Security taxes and other taxes owed and may even provide refund for those who do not owe taxes. Filing income tax returns are usually due on the 15th of April or the following business days after that if it falls on a weekend of holiday.
You can also check the status of your tax refunds through their online refund tracker. Visit their website to find out about it. You can also find your taxpayer’s rights in their Publication 38 that can be viewed online as well.
Also, you should be aware that NY State taxes do not include inheritance tax. For the NY State taxes regarding estates from deaths after 2004, January 1, you may file for tax return with the conditions found in their website. Personal and real property taxes are also included in the NY State taxes.