N.Y. Tax Law § 1304-D

Current through 2024 NY Law Chapter 456

Section 1304-D - Imposition of tax

Notwithstanding any provision of law to the contrary, in lieu of the tax tables provided in section thirteen hundred four of this article, any city imposing the taxes authorized by section thirteen hundred one of this article is hereby authorized and empowered to adopt and amend local laws to impose the rates set forth in the tax tables provided in this section. Provided, however, if any such city adopts a local law to impose tax at the rates set forth in this section, the authorization granted to such city to impose an additional tax by section thirteen hundred four-B of this article shall be suspended while such local law is in effect.

(a) Rate of tax. A tax imposed pursuant to this section shall be determined as follows:

(1) Resident married individuals filing joint returns and resident surviving spouses. The tax under this section for each taxable year on the city taxable income of every city resident married individual who makes a single return jointly with his or her spouse under subsection (b) of section thirteen hundred six of this article and on the city taxable income of every city resident surviving spouse shall be determined in accordance with the following tables:

(A) For taxable years beginning in two thousand five:

If the city taxable income is: The tax is: Not over $21,600 2.907% of the city taxable income Over $21,600 but not $628 plus 3.534% of excess over $45,000 over $21,600 Over $45,000 but not $1,455 plus 3.591% of excess over $90,000 over $45,000 Over $90,000 but not $3,071 plus 3.648% of excess over $150,000 over $90,000 Over $150,000 but not $5,260 plus 4.05% of excess over $500,000 over $150,000 Over $500,000 $19,435 plus 4.45% of excess over $500,000

(B) For taxable years beginning in two thousand four:

If the city taxable income is: The tax is: Not over $21,600 2.907% of the city taxable income Over $21,600 but not $628 plus 3.534% of excess over $45,000 over $21,600 Over $45,000 but not $1,455 plus 3.591% of excess over $90,000 over $45,000 Over $90,000 but not $3,071 plus 3.648% of excess over $150,000 over $90,000 Over $150,000 but not $5,260 plus 4.175% of excess over $500,000 over $150,000 Over $500,000 $19,872 plus 4.45% of excess over $500,000

(C) For taxable years beginning in two thousand three:

If the city taxable income is: The tax is: Not over $21,600 2.907% of the city taxable income Over $21,600 but not $628 plus 3.534% of excess over $45,000 over $21,600 Over $45,000 but not $1,455 plus 3.591% of excess over $90,000 over $45,000 Over $90,000 but not $3,071 plus 3.648% of excess over $150,000 over $90,000 Over $150,000 but not $5,260 plus 4.25% of excess over $500,000 over $150,000 Over $500,000 $20,135 plus 4.45% of excess over $500,000

(2) Resident heads of households. The tax under this section for each taxable year on the city taxable income of every city resident head of a household shall be determined in accordance with the following tables:

(A) For taxable years beginning in two thousand five:

If the city taxable income is: The tax is: Not over $14,400 2.907% of the city taxable income Over $14,400 but not $419 plus 3.534% of excess over $30,000 over $14,400 Over $30,000 but not $970 plus 3.591% of excess over $60,000 over $30,000 Over $60,000 but not $2,047 plus 3.648% of excess over $125,000 over $60,000 Over $125,000 but not $4,418 plus 4.05% of excess over $500,000 over $125,000 Over $500,000 $19,606 plus 4.45% of excess over $500,000

(B) For taxable years beginning in two thousand four:

If the city taxable income is: The tax is: Not over $14,400 2.907% of the city taxable income Over $14,400 but not $419 plus 3.534% of excess over $30,000 over $14,400 Over $30,000 but not $970 plus 3.591% of excess over $60,000 over $30,000 Over $60,000 but not $2,047 plus 3.648% of excess over $125,000 over $60,000 Over $125,000 but not $4,418 plus 4.175% of excess over $500,000 over $125,000 Over $500,000 $20,075 plus 4.45% of excess over $500,000

(C) For taxable years beginning in two thousand three:

If the city taxable income is: The tax is: Not over $14,400 2.907% of the city taxable income Over $14,400 but not $419 plus 3.534% of excess over $30,000 over $14,400 Over $30,000 but not $970 plus 3.591% of excess over $60,000 over $30,000 Over $60,000 but not $2,047 plus 3.648% of excess over $125,000 over $60,000 Over $125,000 but not $4,418 plus 4.25% of excess over $500,000 over $125,000 Over $500,000 $20,356 plus 4.45% of excess over $500,000

(3) Resident unmarried individuals, resident married individuals filing separate returns and resident estates and trusts. The tax under this section for each taxable year on the city taxable income of every city resident individual who is not a married individual who makes a single return jointly with his or her spouse under subsection (b) of section thirteen hundred six of this article or a city resident head of a household or a city resident surviving spouse, and on the city taxable income of every city resident estate and trust shall be determined in accordance with the following tables:

(A) For taxable years beginning in two thousand five:

If the city taxable income is: The tax is: Not over $12,000 2.907% of the city taxable income Over $12,000 but not $349 plus 3.534% of excess over $25,000 over $12,000 Over $25,000 but not $808 plus 3.591% of excess over $50,000 over $25,000 Over $50,000 but not $1,706 plus 3.648% of excess over $100,000 over $50,000 Over $100,000 but not $3,530 plus 4.05% of excess over $500,000 over $100,000 Over $500,000 $19,730 plus 4.45% of excess over $500,000

(B) For taxable years beginning in two thousand four:

If the city taxable income is: The tax is: Not over $12,000 2.907% of the city taxable income Over $12,000 but not $349 plus 3.534% of excess over $25,000 over $12,000 Over $25,000 but not $808 plus 3.591% of excess over $50,000 over $25,000 Over $50,000 but not $1,706 plus 3.648% of excess over $100,000 over $50,000 Over $100,000 but not $3,530 plus 4.175% of excess over $500,000 over $100,000 Over $500,000 $20,230 plus 4.45% of excess over $500,000

(C) For taxable years beginning in two thousand three:

If the city taxable income is: The tax is: Not over $12,000 2.907% of the city taxable income Over $12,000 but not $349 plus 3.534% of excess over $25,000 over $12,000 Over $25,000 but not $808 plus 3.591% of excess over $50,000 over $25,000 Over $50,000 but not $1,706 plus 3.648% of excess over $100,000 over $50,000 Over $100,000 but not $3,530 plus 4.25% of excess over $500,000 over $100,000 Over $500,000 $20,530 plus 4.45% of excess over $500,000

(b) Tax table benefit recapture. For taxable years beginning after two thousand two and before two thousand six, there is hereby imposed a supplemental tax in addition to the tax imposed under subsection (a) of this section for the purpose of recapturing the benefit of the tax tables contained in such subsection. The supplemental tax shall be an amount equal to the sum of the tax table benefits in paragraphs one and two of this subsection multiplied by their respective fractions in such paragraphs provided, however, that paragraph one of this subsection shall not apply to taxpayers who are not subject to the second highest rate of tax.

(1) Resident married individuals filing joint returns, surviving spouses, resident heads of households, resident unmarried individuals, resident married individuals filing separate returns and resident estates and trusts.

(A) The tax table benefit is the difference between (i) the amount of taxable income set forth in the tax table in subsection (a) of this section not subject to the second highest rate of tax for the taxable year multiplied by such rate and (ii) the second highest dollar denominated tax for such amount of taxable income set forth in the tax table applicable to the taxable year in subsection (a) of this section.

(B) The fraction is computed as follows: the numerator is the lesser of fifty thousand dollars or the excess of New York adjusted gross income for the taxable year over one hundred fifty thousand dollars and the denominator is fifty thousand dollars.

(C) This paragraph shall only apply to taxable years beginning after two thousand two and before two thousand six.

(2) Resident married individuals filing joint returns, surviving spouses, resident heads of households, resident unmarried individuals, resident married individuals filing separate returns and resident estates and trusts.

(A) The tax table benefit is the difference between (i) the amount of taxable income set forth in the tax table in subsection (a) of this section not subject to the highest rate of tax for the taxable year multiplied by such rate and (ii) the highest dollar denominated tax set forth in the tax table applicable to the taxable year in subsection (a) of this section less the sum of the tax table benefits in paragraph one of this subsection.

(B) For such taxpayers with adjusted gross income over five hundred thousand dollars, the fraction is one. Provided, however, that the total tax prior to the application of any tax credits shall not exceed the highest rate of tax set forth in the tax table in subsection (a) of this section multiplied by the taxpayer's taxable income.

(C) This paragraph shall only apply to taxable years beginning after two thousand two and before two thousand six.

N.Y. Tax Law § 1304-D