New York City has its own municipal income tax. Combined with the NY state tax, it’s the second highest tax rate in the nation.
NYC is the only U.S. jurisdiction that comes close to challenging California’s place at the top of the income tax (dung) heap. The top NY state income tax rate is 8.82%, while the top NYC income tax is an additional 3.876% (ya gotta wonder why they calculate the tax to a THOUSANTH of a percent). And BTW that top city income tax kicks in at only $50,000 of income.
Thus the top combined NYC tax is 12.696% — challenging (unsuccessfully) California’s top rate of 13.3%. Moreover, NYC has a COL that is even higher than the average CA COL. The theory of NYC politicians is that taxes don’t matter — some businesses HAVE to be in NYC — notably financial businesses.
Wrong! This is the electronic age. More and more, businesses are learning that location DOESN’T… Read More