Summary of SFY 2009-10 Tax Provisions
Part Z-1 of Chapter 57 of the Laws of 2009 amends the Tax Law to temporarily add two New York State income tax rates and brackets for tax years 2009 through 2011. The new top rate and bracket for all filing statuses for tax years 2009 to 2011 is 8.97 percent of taxable income in excess of $500,000. The new “second to highest” tax rate is 7.85 percent and its taxable income bracket varies by filing status as shown below:
|Filing Status||Tax Rate||Taxable Income|
|Single||7.85%||$200,000 to $500,000|
|Head of Household||7.85%||$250,000 to $500,000|
|Married Joint||7.85%||$300,000 to $500,000|
The supplemental tax, which recaptures the benefits of the lower tax rates is also amended. For taxpayers with taxable income in the “second to highest” bracket, the recapture of rates below the “second to highest” bracket begins when New York adjusted gross income (NYAGI) is $300,000 and is completed when NYAGI equals $350,000. The recapture of rates below the highest rate begins when NYAGI is $500,000 and is completed when NYAGI equals $550,000, with an overall limitation on tax liability equal to the highest tax rate multiplied by taxable income. Thus, for tax years 2009-2011, a flat rate of 8.97 percent of taxable income will apply for taxpayers with NYAGI in excess of $550,000.