New York has modified the personal income tax rate schedule for tax years 2012 through 2014.
Under the statute, the state lowers its top "permanent" personal income tax rate from 6.85% to 6.45% for portions of income over $40,000 but not over $150,000 and to 6.65% for portions of income over $150,000 but not over $300,000. The top "permanent" rate is raised to 8.82% for those earning more than $2 million, and the current top rate of 6.85% remains in effect for those earning over $300,000 but not over $2 million. Each of these rates is less than the temporary rates that have been in effect since 2009.
The new rates will expire December 31, 2014. After 2014, unless New York's legislature acts, the top tax rate of 6.85% will apply to any portion of income exceeding $40,000