S 7306: Provides that taxpayers in the city of New York with certain lower income levels shall not be subject to city personal income taxation.

  
  STATE OF NEW YORK ________________________________________________________________________ 7306 2025-2026 Regular Sessions  IN SENATE April 9, 2025 ___________ Introduced by Sen. CLEARE -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the tax law, in relation to making certain taxpayers exempt from the city personal income tax of the city of New York The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraphs 1, 2 and 3 of subsection (b) of section 1304 of 2 the tax law, as amended by chapter 345 of the laws of 2023, are amended 3 to read as follows: 4 (1) Resident married individuals filing joint returns and resident 5 surviving spouses. The tax under this section for each taxable year on 6 the city taxable income of every city resident married individual who 7 makes a single return jointly with [his or her] their spouse under 8 subsection (b) of section thirteen hundred six of this article and on 9 the city taxable income of every city resident surviving spouse shall be 10 determined in accordance with the following table: 11 For taxable years beginning after two thousand twenty-six: 12 If the city taxable income is: The tax is: 13 Not over [$21,600 1.18% of the city taxable income 14 Over $21,600 but not $255 plus 1.435% of excess 15 over] $45,000 [over $21,600] 0% of the city 16 taxable income 17 Over $45,000 but not $591 plus 1.455% of excess 18 over $90,000 over $45,000 19 Over $90,000 $1,245 plus 1.48% of excess 20 over $90,000 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11527-01-5 
 S. 7306 2 1 (2) Resident heads of households. The tax under this section for each 2 taxable year on the city taxable income of every city resident head of a 3 household shall be determined in accordance with the following table: 4 For taxable years beginning after two thousand twenty-six: 5 If the city taxable income is: The tax is: 6 Not over [$14,400 1.18% of the city taxable income 7 Over $14,400 but not $170 plus 1.435% of excess 8 over $30,000] $32,500 [over $14,400] 0% of the 9 city taxable income 10 Over [$30,000] $32,500 but not $394 plus 1.455% of 11 over $60,000 excess over [$30,000] 12 $32,500 13 Over $60,000 $830 plus 1.48% of excess 14 over $60,000 15 (3) Resident unmarried individuals, resident married individuals 16 filing separate returns and resident estates and trusts. The tax under 17 this section for each taxable year on the city taxable income of every 18 city resident individual who is not a city resident married individual 19 who makes a single return jointly with [his or her] their spouse under 20 subsection (b) of section thirteen hundred six of this article or a city 21 resident head of household or a city resident surviving spouse, and on 22 the city taxable income of every city resident estate and trust shall be 23 determined in accordance with the following table: 24 For taxable years beginning after two thousand twenty-six: 25 If the city taxable income is: The tax is: 26 Not over [$12,000 1.18% of the city taxable income 27 Over $12,000 but not $142 plus 1.435% of excess 28 over $25,000] $32,500 [over $12,000] 0% of the 29 city taxable income 30 Over [$25,000] $32,500 but not $328 plus 1.455% of 31 excess 32 over $50,000 over [$25,000] $32,500 33 Over $50,000 $692 plus 1.48% of excess 34 over $50,000 35 § 2. Paragraph 1 of subsection (a) of section 1304-B of the tax law, 36 as amended by chapter 345 of the laws of 2023, is amended to read as 37 follows: 38 (1) In addition to any other taxes authorized by this article, any 39 city imposing such taxes is hereby authorized and empowered to adopt and 40 amend local laws imposing in any such city for each taxable year begin- 41 ning after nineteen hundred ninety but before two thousand twenty-seven, 42 an additional tax on the city taxable income of every city resident 43 individual, estate and trust, to be calculated for each taxable year as 44 follows: (i) for each taxable year beginning after nineteen hundred 45 ninety but before nineteen hundred ninety-nine, at the rate of fourteen 46 percent of the sum of the taxes for each such taxable year determined 47 pursuant to section thirteen hundred four and section thirteen hundred 48 four-A of this article; and (ii) for each taxable year beginning after 49 nineteen hundred ninety-eight, at the rate of fourteen percent of the 50 tax for such taxable year determined pursuant to such section thirteen 51 hundred four; provided, however, that any taxable income with a tax rate 
 S. 7306 3 1 of zero percent shall not be subject to any additional tax pursuant to 2 this section. 3 § 3. Subparagraph (A) of paragraph 1, subparagraph (A) of paragraph 2 4 and subparagraph (A) of paragraph 3 of subsection (a) of section 1304-D 5 of the tax law, as added by section 1 of part B of chapter 63 of the 6 laws of 2003, are amended to read as follows: 7 (A) For taxable years beginning in two thousand five: 8 If the city taxable income is: The tax is: 9 Not over [$21,600 2.907% of the city taxable income 10 Over $21,600 but not $628 plus 3.534% of excess 11 over] $45,000 [over $21,600] 0% of the city 12 taxable income 13 Over $45,000 but not $1,455 plus 3.591% of excess 14 over $90,000 over $45,000 15 Over $90,000 but not $3,071 plus 3.648% of excess 16 over $150,000 over $90,000 17 Over $150,000 but not $5,260 plus 4.05% of excess 18 over $500,000 over $150,000 19 Over $500,000 $19,435 plus 4.45% of excess 20 over $500,000 21 (A) For taxable years beginning in two thousand five: 22 If the city taxable income is: The tax is: 23 Not over [$14,400 2.907% of the city taxable income 24 Over $14,400 but not $419 plus 3.534% of excess 25 over $30,000] $32,500 [over $14,400] 0% of the 26 city taxable income 27 Over [$30,000] $32,500 but not $970 plus 3.591% of excess 28 over $60,000 over [$30,000] $32,500 29 Over $60,000 but not $2,047 plus 3.648% of excess 30 over $125,000 over $60,000 31 Over $125,000 but not $4,418 plus 4.05% of excess 32 over $500,000 over $125,000 33 Over $500,000 $19,606 plus 4.45% of excess 34 over $500,000 35 (A) For taxable years beginning in two thousand five: 36 If the city taxable income is: The tax is: 37 Not over [$12,000 2.907% of the city taxable income 38 Over $12,000 but not $349 plus 3.534% of excess 39 over $25,000] $32,500 [over $12,000] 0% of the 40 city taxable income 41 Over [$25,000] $32,500 but not $808 plus 3.591% of excess 42 over $50,000 over [$25,000] $32,500 43 Over $50,000 but not $1,706 plus 3.648% of excess 44 over $100,000 over $50,000 45 Over $100,000 but not $3,530 plus 4.05% of excess 46 over $500,000 over $100,000 47 Over $500,000 $19,730 plus 4.45% of excess 48 over $500,000 49 § 4. This act shall take effect immediately.