S 587 creates a new income tax deduction for cash tips received by workers, specifically for tips classified as wages under federal tax law. This change directly affects service industry workers (like servers and bartenders) who receive cash tips, allowing them to subtract those tips from their taxable income. The bill adds a specific deduction line to the tax code for cash tips received during a tax year, effective for all tax returns filed for 2025 and later. It does not change how tips are reported to employers but adjusts how they are treated for state tax purposes. The bill is currently pending in committee review.
Creates deduction from franchise tax and personal income tax for costs of acquiring or improving a child care facility operated for profit; creates deduction from corporation tax, franchise tax, personal income tax and tax on banks for costs of acquiring or improving a child care facility operated primarily for children of taxpayer's employees.
This bill adjusts New York's highest personal income tax rates for earners with taxable income above $5 million. It increases the top marginal tax rate from 10.30% to 10.80% for income between $5 million and $25 million, and raises the rate for income over $25 million from 10.90% to 11.40% for tax years beginning after 2027. These changes apply to single filers, heads of household, and married taxpayers filing separately. The bill directly affects high-income New Yorkers whose taxable income exceeds $5 million annually.
S 5261 increases the maximum amount of the child and dependent care tax credit for families with children or other dependents to keep pace with rising childcare costs. Starting in 2025, the credit caps rise to $7,500 for three dependents (up to $9,000 for five or more), and for 2026, the limits adjust further (e.g., $18,000 for five or more dependents). The bill updates annual dollar limits based on the number of qualifying individuals, ensuring the credit reflects current expenses. It directly affects taxpayers claiming this credit on their federal tax returns.
This bill increases corporate income tax rates in the state. For most corporations, the rate rises to 7.25% for taxable years beginning on or after January 1, 2026. Corporations with a business income base exceeding $5 million will pay 11.5% instead of the standard rate. The change applies to businesses operating within the state and affects all corporate taxpayers subject to the state's tax law, with specific lower rates for small businesses, manufacturers, and qualified emerging technology companies as defined in the law. The bill takes effect immediately upon enactment for taxable years starting on or after the effective date.
Enacts the "omnibus emergency services volunteer incentive act" to provide benefits to volunteer firefighters and ambulance workers; increases the personal income tax deduction after four or more years of service; exempts motor vehicles used in the performance of such volunteers' duties from registration fees, use taxes and special fees for volunteer license plates; authorizes the provision of municipal health insurance coverage to such volunteers; establishes a volunteer recruitment service loan forgiveness program.
Provides an earned income tax credit to youth workers; increases the standard deduction for individuals eighteen to twenty-four years of age; provides for the deduction of student loan interest; provides for the expiration of such provisions.
This bill allows taxpayers to deduct premiums paid for long-term care insurance riders attached to life insurance policies from their personal income tax. It directly affects individuals who purchase life insurance policies with added long-term care coverage. The key provision amends tax law to create a new deduction category (paragraph 48) specifically for these rider premiums. The change applies to taxable years starting January 1 after the bill becomes law.
This bill creates a voluntary tax contribution option on New York state income tax returns to fund affordable housing specifically for veterans and seniors. Taxpayers can choose to donate any whole dollar amount without reducing their tax liability, with all contributions directed to the new "Affordable Housing for Veterans and Seniors Fund." The fund, managed by the tax commissioner, veterans' affairs director, and comptroller, must be used exclusively for affordable housing projects serving these groups, with annual reports detailing how funds were spent and distributed. The bill requires yearly spending reports to state officials and the public, ensuring transparency in fund utilization.
Authorizes a state personal income tax credit for elementary and secondary school personnel for certain expenses incurred for school related supplies for taxable years beginning on or after January 1, 2026.
