Taxes are going up for New York’s highest earners.
Legislation passed Wednesday raises income-tax rates on single filers with more than about $1.1 million of income and joint filers reporting more than about $2.2 million. The changes mean top earners in New York City will be subject to the highest combined local tax rate in the country.
Income-tax increases are part of a broader state budget deal supported by Gov. Andrew Cuomo. Mr. Cuomo had proposed delaying a scheduled decrease in rates for middle-class payers, but the legislation allows those tax cuts to proceed.
Also in the legislation: a way for some business owners to avoid the $10,000 cap on state and local tax deductions—know as SALT—that stung residents of high-tax states such as New York, New Jersey and Connecticut.
Here is what high earners need to know about the new state income-tax rates, which will continue through 2027.