About New York State Income Tax
State income taxes are used for many different programs and services. In New York, the state income tax is a key component in that state's efforts to provide a strong quality of life and unique services to its residents. Of course, no one likes to pay taxes, but they are a necessary part of sustaining and improving our individual states and our country.
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Significance
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New York has one of the highest state income taxes in the nation. According to the Tax Foundation, New York State's tax burden ranks second in the country. The state's Department of Taxation and Finance, which is responsible for collecting over taxed revenue, also ranks as one of the largest state revenue collection agencies in the nation.
Types
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New York State's Income tax is a considered a progressive system due to its five tax brackets. A single taxpayer is taxed at the rate of 4 percent on the first $8,000 in income, 4.5 percent on income between $8,001 and $11,000, 5.25 percent on income between $11,001 and $13,000, 5.9 percent on income between $13,001 and $20,000, and 6.85 percent on income of $20,001 or more.
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Size
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The New York Department of Taxation and Finance is responsible for collecting taxes throughout the state. It estimates that they collect over $34 billion in revenue in income taxes, as well as local and business taxes.
Benefits
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Because New York is such a populous state, tax revenue is vitally important. The tax revenue provide benefits for all through improved local and state infrastructure -- roads, bridges and tunnels -- services for the poor, police and fire services, prisons, transportation, health services, environmental protection and schools.
Considerations
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New York income taxpayers have the ability to apply for the state earned income credit, which is available to help offset increases in other taxes and expenses. The earned income tax credit can reduce owed taxes, possibly provide a refund and offset Social Security taxes and other living expenses. Additionally, there are deductions that are available to a New York income taxpayer. One could apply for the standard deduction, which for a single taxpayer is $7,500 -- a married joint filer's standard deduction is $15,000 -- as well as the retirement income tax deduction. Retired military pay is exempt from taxes, and there are certain provisions for exempting portions of military disability retired pay as well.
Warning
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As with all taxing agencies, the New York State Department of Taxation and Finance has penalties for those that do not file their income taxes or file them late. These penalties could include a simple fine with interest owed or a term in prison depending on how late the filing takes place. Even if you file for an extension, interest will be charged to late tax payments.
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