S 1556: Indexes personal income taxes to the cost of living adjustment beginning in 2026.

  
  STATE OF NEW YORK ________________________________________________________________________ 1556 2025-2026 Regular Sessions  IN SENATE January 10, 2025 ___________ Introduced by Sens. PALUMBO, BORRELLO, GRIFFO, HELMING, OBERACKER, STEC -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue AN ACT to amend the tax law, in relation to indexing taxes to inflation; and to repeal certain provisions of such law relating thereto The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 601-a of the tax law is REPEALED and a new section 2 601-a is added to read as follows: 3 § 601-a. Cost of living adjustment. (a) For tax year two thousand 4 twenty-six and thereafter, the commissioner, no later than September 5 first preceding the end of the previous tax year, shall multiply the 6 amounts specified in subsection (b) of this section by one plus the cost 7 of living adjustment described in subsection (c) of this section. 8 (b) The following amounts shall be indexed by the cost of living 9 adjustment: 10 (1) The dollar amounts in the tax tables set forth in paragraph one of 11 subsection (a), paragraph one of subsection (b) and paragraph one of 12 subsection (c) of section six hundred one of this part. 13 (2) The dollar amount in the numerator of the fractions in subsection 14 (d) of section six hundred one of this part that is not fifty thousand 15 dollars. 16 (3) The New York standard deduction of a resident individual in 17 section six hundred fourteen of this article. 18 (c) The cost of living adjustment shall be calculated in the same 19 manner as determined by the secretary of the United States treasury for 20 purposes of section 1(f) of the United States Internal Revenue Code of 21 1954, as amended. For purposes of this section, the consumer price index 22 means the Chained Consumer Price Index for All Urban Consumers (C-CPI-U) 23 published by the United States department of labor, bureau of labor 24 statistics. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04416-01-5 
 S. 1556 2 1 (d) If the product of the amounts in subsection (b) and subsection (c) 2 of this section is not a multiple of fifty dollars, such increase shall 3 be rounded to the next lowest multiple of fifty dollars. 4 § 2. This act shall take effect immediately.