Bill > S07306

This bill modifies the New York City personal income tax structure to provide tax relief for lower-income residents by significantly raising the income thresholds at which individuals begin paying city income taxes. Specifically, the bill changes the tax tables for three categories of taxpayers (married individuals filing jointly, heads of households, and unmarried individuals) so that those with taxable income at or below $32,500 will pay 0% in city income tax, compared to previous lower thresholds of $12,000-$21,600. The bill also ensures that income levels taxed at 0% will not be subject to additional city tax surcharges. These changes apply to taxable years beginning after 2026 and aim to reduce the tax burden on lower and middle-income New York City residents by effectively expanding the tax-free income brackets. The modifications use gender-neutral language (changing "his or her" to "their") and represent an adjustment to existing tax law to provide more favorable tax treatment for residents with lower incomes.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S7306