Bill > A00676

This bill imposes an additional tax on long-term capital gains, dividends, and other investment income for New York state taxpayers, creating a new progressive tax structure based on income levels. The bill introduces a tiered tax rate system where individuals with higher taxable incomes will pay additional percentages on their investment income: for married couples filing jointly and surviving spouses, the additional tax is 7.5% for incomes over $500,000 and 15% for incomes over $1 million; for heads of household, the same thresholds and rates apply; and for single individuals, estates, and trusts, the additional tax is 7.5% for incomes over $400,000 and 15% for incomes over $800,000. These additional taxes will be phased in proportionally within specified income ranges to create a gradual increase in tax liability. The new tax will be administered similarly to existing state income taxes, with the New York State Department of Taxation and Finance authorized to adopt necessary regulations to implement the provision. The bill is designed to generate additional tax revenue from high-income taxpayers by targeting investment income specifically.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A676