NY state tax rate

[ansky127]

Can you lose the progressive tax rate in new york? My program is calculating taxes for NY at one rate. 9.65%. The full amount of taxable income is $2,057,786. And its all being applied to the 9.65 for a total tax of $198,576. Following the tax worksheet it appears to be correct, but how come no progressive tax rate? Seems like because the AGI is over 1,666,450 the progressive is lost. Is that correct? Thank you!

[sjrcpa]

Have you checked the NY instructions?

[ansky127]

I believe the instructions say to follow the worksheet. And when you follow the worksheet you end up applying the whole amount to the one rate. Just wondering if anyone has any additional insight on this besides simple following the instructions step by step. To be clear, I am not saying that what the program is doing is wrong, just wondering if anyone has any color to add here.

Thanks

[sjrcpa]

You don't mention year or filing status. I just looked up in Checkpoint.

N.Y. Tax Law § 601 [Eff. 4-9-2022.] Imposition of tax.

For taxable years beginning in two thousand twenty-one the following rates shall apply:

If the New York taxable income is:	The tax is:
Not over $17,150	4% of the New York taxable income
Over $17,150 but not over $23,600	$686 plus 4.5% of excess over $17,150
Over $23,600 but not over $27,900	$976 plus 5.25% of excess over $23,600
Over $27,900 but not over $43,000	$1,202 plus 5.9% of excess over $27,900
Over $43,000 but not over $161,550	$2,093 plus 5.97% of excess over $43,000
Over $161,550 but not over $323,200	$9,170 plus 6.33% of excess over $161,550
Over $323,200 but not over $2,155,350	$19,403 plus 6.85% of excess over $323,200
Over $2,155,350 but not over $5,000,000	$144,905 plus 9.65% of excess over $2,155,350
Over $5,000,000 but not over $25,000,000	$419,414 plus 10.30% of excess over $5,000,000
Over $25,000,000	$2,479,414 plus 10.90% of excess over $25,000,000

[ansky127]

Thats a great point, its tax year 2021 and HOH. I understand that isnt the chart you shared, but using the chart you shared, I would think it would be the 9.65% rate line. But its not calculating $144,905 plus anything over 2,155,350. It's calculating a straight rate of 9.65% by the total taxable income. Is there a rule that is someone's AGI is over a certain amount they use the 9.65 as a flat rate? Thats how I am reading the instructions, but was hoping someone could chime in to make sure that is correct.

Thanks again.