Bill > S01556

This bill indexes personal income taxes to the cost of living adjustment beginning in 2026, which means that certain dollar amounts related to income tax calculations will be automatically adjusted each year to account for inflation. Specifically, the bill requires the New York State tax commissioner to annually adjust tax tables, standard deductions, and certain tax calculation fractions using the Chained Consumer Price Index for All Urban Consumers (C-CPI-U), which is published by the U.S. Department of Labor Bureau of Labor Statistics. The adjustment method will mirror the calculation used by the U.S. Treasury for federal income tax purposes. Any resulting increases that are not a multiple of fifty dollars will be rounded down to the nearest fifty-dollar increment. This automatic indexing is designed to prevent "bracket creep," where taxpayers can be pushed into higher tax brackets due to inflationary wage increases that do not represent real income growth. The changes will take effect immediately upon passage, with the first adjustments applying to the 2026 tax year.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S1556