Bill > A03551

This bill amends the New York State tax law to modify the business income tax rates for businesses with different income levels, specifically changing the tax rates for taxable years beginning on or after January 1, 2026. Currently, businesses with a business income base (total business income) up to $290,000 pay 6.5% in taxes, with a sliding scale for businesses earning between $290,000 and $390,000. The bill reduces the base tax rate to 4% for businesses with income up to $290,000 and adjusts the tax calculation for businesses earning between $290,000 and $390,000, lowering some rates and introducing a new higher rate of 18.13% for income over $350,000. These changes are designed to provide tax relief for smaller businesses while potentially increasing tax contributions from businesses with higher income levels. The bill will take effect immediately and apply to taxable years starting on or after January 1, 2026, giving businesses and tax authorities time to prepare for the new tax structure.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A3551