What Is the Ceiling for Taxable Income in New York?
New York state -- like many other states across the country -- has an escalating income tax scale. This means that the percentage of income tax that a resident pays depends on what she earns. Those who make a smaller amount of money pay a lesser percentage of income tax than those who make larger amounts of money.
Other People Are Reading
-
No Ceiling
-
There is not a ceiling for taxable income in New York. All money that an individual makes is subject to being taxed. This means that an individual who makes $3 million per year, just like an individual who earns $30,000, must pay income tax on all his earnings. Of course, the amount of income tax each person pays varies, as does the percentage he pays.
Filing Status
-
The state of New York requires that all income earners pay tax on the income they receive. The percentage they pay depends on the amount they earn as well as on their filing status. Generally speaking, those who file joint taxes with a spouse may pay a smaller percentage in taxes than taxpayers with similar income who file as single.
-
Highest Percentage
-
As of September 2011, the highest percentage of taxes that a person or a couple in New York might pay in income taxes was 8.97 percent. Both those with single and those with joint filing status are required to pay 8.97 percent income tax if they earn more than $500,000 per year. Regardless of whether a taxpayer's income is $500,000 or $5 million, he will pay the same percentage of income tax.
Other Tax Brackets
-
The state of New York has seven different tax brackets. The lowest tax bracket is for those who earn between $0 and $8,000 if filing single or $0 and $16,000 if filing a joint return. Those who earn these amounts are required to pay 4 percent of their income in state income tax. Many single earners pay 6.85 percent income tax, which is the tax rate for those filing as single who earn between $20,000 and $200,000 per year. Couples who file jointly and earn between $40,000 and $300,000 pay 6.85 percent as well.
-
