New York

New York top stated rate: 10.9% on New York taxable income above $25,000,000 (MFJ, TY2025)

“For taxable years beginning on or after January 1, 2023, the rates of tax imposed under this section are: 4% on income to $17,150; 4.5% from $17,151 to $23,600; 5.25% from $23,601 to $27,900; 5.85% from $27,901 to $161,550; 6.25% from $161,551 to $323,200; 6.85% from $323,201 to $2,155,350; 9.65% from $2,155,351 to $5,000,000; 10.3% from $5,000,001 to $25,000,000; and 10.9% above $25,000,000, for married individuals filing a joint return; provided, this subparagraph shall apply only to taxable years beginning on or after January first, two thousand twenty-one and before January first, two thousand twenty-eight.”

Note: The elevated brackets (9.65%, 10.3%, 10.9%) were extended through TY2032 by the FY2026 budget (A3009-C, signed 2025-05-09): N.Y. Tax Law §601 now applies them to taxable years beginning after 2025 and before 2033 ('FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FIVE AND BEFORE TWO THOUSAND THIRTY-THREE'). The 10.9% bracket applies above $25M (joint); for most high-capital-gain filers the operative range is 9.65% to 10.3%. The recapture trap (see NY_RATE_RECAPTURE) can produce higher effective rates between $107,650 and ~$161,500. No preferential LT rate: NY taxes capital gains as ordinary income at these rates. Standard deduction $16,050 MFJ (TY2025).

New York income tax: graduated up to 10.9%; benefit-recapture flat rate kicks in above $107,650 NYAGI

“For taxable years beginning on or after January 1, 2023, the rates of tax imposed under this section are: 4% on income to $17,150; 4.5% from $17,151 to $23,600; 5.25% from $23,601 to $27,900; 5.85% from $27,901 to $161,550; 6.25% from $161,551 to $323,200; 6.85% from $323,201 to $2,155,350; 9.65% from $2,155,351 to $5,000,000; 10.3% from $5,000,001 to $25,000,000; and 10.9% above $25,000,000, for married individuals filing a joint return.”

Note: N.Y. Tax Law §601(a) establishes graduated brackets with a benefit-recapture mechanism above $107,650 NYAGI. The recapture trap: once NYAGI exceeds $107,650, the ENTIRE NY tax is recomputed as a flat % of ALL NY taxable income. Between $107,650 and ~$161,500 NYAGI (MFJ), the effective marginal rate can exceed 100% (each additional dollar of income increases tax by more than $1 because it causes the flat-rate recalculation to apply to a larger base). This is the most counterintuitive rate structure in any U.S. state. Capital gains that push NYAGI past $107,650 trigger this. The elevated brackets (9.65%, 10.3%, 10.9%) run through TY2032 per §601 as amended by the FY2026 budget (A3009-C, signed 2025-05-09). Verbatim text extracted from nysenate.gov.

New York income tax: graduated up to 10.9%; benefit-recapture flat rate kicks in above $107,650 NYAGI

“For taxable years beginning on or after January 1, 2023, the rates of tax imposed under this section are: 4% on income to $17,150; 4.5% from $17,151 to $23,600; 5.25% from $23,601 to $27,900; 5.85% from $27,901 to $161,550; 6.25% from $161,551 to $323,200; 6.85% from $323,201 to $2,155,350; 9.65% from $2,155,351 to $5,000,000; 10.3% from $5,000,001 to $25,000,000; and 10.9% above $25,000,000, for married individuals filing a joint return.”

Note: N.Y. Tax Law §601(a) establishes graduated brackets with a benefit-recapture mechanism above $107,650 NYAGI. The recapture trap: once NYAGI exceeds $107,650, the ENTIRE NY tax is recomputed as a flat % of ALL NY taxable income. Between $107,650 and ~$161,500 NYAGI (MFJ), the effective marginal rate can exceed 100% (each additional dollar of income increases tax by more than $1 because it causes the flat-rate recalculation to apply to a larger base). This is the most counterintuitive rate structure in any U.S. state. Capital gains that push NYAGI past $107,650 trigger this. The elevated brackets (9.65%, 10.3%, 10.9%) run through TY2032 per §601 as amended by the FY2026 budget (A3009-C, signed 2025-05-09). Verbatim text extracted from nysenate.gov.

IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback

“In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.”

Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.

NY taxes out-of-state muni bond interest add-back per Tax Law §612(b)(1); NY bonds exempt

“Interest income on obligations of any state other than this state, or of a political subdivision of any such other state unless created by compact or agreement to which this state is a party, to the extent not properly includible in federal adjusted gross income”

Note: N.Y. Tax Law §612(b)(1) requires addition of out-of-state muni interest to NY AGI. Verbatim text extracted from nysenate.gov. NY-issued bonds (state and subdivisions) are exempt by negative implication: the statute only requires addition of obligations of 'any state other than this state.'

NY taxes out-of-state muni bond interest add-back per Tax Law §612(b)(1); NY bonds exempt

“Interest income on obligations of any state other than this state, or of a political subdivision of any such other state unless created by compact or agreement to which this state is a party, to the extent not properly includible in federal adjusted gross income”

Note: N.Y. Tax Law §612(b)(1) requires addition of out-of-state muni interest to NY AGI. Verbatim text extracted from nysenate.gov. NY-issued bonds (state and subdivisions) are exempt by negative implication: the statute only requires addition of obligations of 'any state other than this state.'

New York does not conform to IRC §1400Z-2 QOZ gain deferral and exclusion

“The amount of any gain excluded from federal gross income for the taxable year pursuant to section 1400Z-2 of the internal revenue code shall be added back in computing New York adjusted gross income.”

Note: N.Y. Tax Law §612(b)(42) requires an addback of any gain excluded from federal income under IRC §1400Z-2. Deferred or permanently excluded QOZ gain is fully taxable in New York in the year of reinvestment into a QOF.

New York conforms to IRC §1202 QSBS gain exclusion by omission: no §1202 addback in §612(b)

“New York adjusted gross income of a resident individual means his federal adjusted gross income as defined in the laws of the United States for the taxable year, with the modifications specified in this section.”

Note: Conformity established by negative inference: N.Y. Tax Law §612(a) begins from federal AGI; §612(b) enumerates additions to NY income but contains no addition for amounts excluded under IRC §1202. Federally excluded QSBS gain therefore never enters NYAGI. N.Y. Tax Law §612(c)(43) is NOT a QSBS provision; it is the QOZ gain-recovery subtraction (mirror of §612(b)(42)). No affirmative statutory text confirms §1202 conformity; medium confidence per schema rules because proof-by-omission is not verbatim statutory text.

NY TSB-M-95(4)I: FNMA bonds/debentures and FHLMC listed as 'Yes' (subject to NY income tax)

“Federal Home Loan Mortgage Corporation (Freddie Macs): Subject to New York State Income Tax; Yes. Federal National Mortgage Association (Fannie Mae): (a) Interest on Bonds and Debentures (all tax years): Subject to New York State Income Tax; Yes.”

Note: TSB-M-95(4)I is the controlling NY DTF guidance on federal agency bond taxability. Verbatim text extracted from PDF. It explicitly distinguishes exempt GSEs (FHLB: 'No'; FFCB: 'No') from taxable ones (FNMA/FHLMC/GNMA: 'Yes'). The mechanism is N.Y. Tax Law §612(c)(2): a subtraction applies only when a federal statute specifically bars state taxation of the bondholder interest. No such statute exists for FNMA or FHLMC.

New York top stated rate: 10.9% on New York taxable income above $25,000,000 (MFJ, TY2025)

“For taxable years beginning on or after January 1, 2023, the rates of tax imposed under this section are: 4% on income to $17,150; 4.5% from $17,151 to $23,600; 5.25% from $23,601 to $27,900; 5.85% from $27,901 to $161,550; 6.25% from $161,551 to $323,200; 6.85% from $323,201 to $2,155,350; 9.65% from $2,155,351 to $5,000,000; 10.3% from $5,000,001 to $25,000,000; and 10.9% above $25,000,000, for married individuals filing a joint return; provided, this subparagraph shall apply only to taxable years beginning on or after January first, two thousand twenty-one and before January first, two thousand twenty-eight.”

Note: The elevated brackets (9.65%, 10.3%, 10.9%) were extended through TY2032 by the FY2026 budget (A3009-C, signed 2025-05-09): N.Y. Tax Law §601 now applies them to taxable years beginning after 2025 and before 2033 ('FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FIVE AND BEFORE TWO THOUSAND THIRTY-THREE'). The 10.9% bracket applies above $25M (joint); for most high-capital-gain filers the operative range is 9.65% to 10.3%. The recapture trap (see NY_RATE_RECAPTURE) can produce higher effective rates between $107,650 and ~$161,500. No preferential LT rate: NY taxes capital gains as ordinary income at these rates. Standard deduction $16,050 MFJ (TY2025).

U.S. Treasury interest exempt from New York income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations

“Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.”

Note: 31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.

FHLB and FFCB bond interest exempt from New York income tax: federal enabling statutes mandate state tax exemption

“Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.”

Note: 12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.

Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation

“The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).”

Note: 12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.

IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback

“In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.”

Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.

New York estate tax: 3.06% to 16% graduated rate structure; 105% cliff

“A tax is hereby imposed on the transfer of the New York estate by every deceased individual who at his or her death was a resident of New York state. ... no credit shall be allowed to the estate of any decedent whose New York taxable estate exceeds one hundred five percent of the basic exclusion amount.”

Note: N.Y. Tax Law §952 (Article 26) establishes the estate tax with graduated rates from 3.06% to 16%. Cliff provision (quoted): if the estate exceeds 105% of the basic exclusion, the applicable-credit exclusion is fully phased out and tax applies from dollar one at 3.06%, rising to 16%. NY does not allow federal portability. Agency overview: https://www.tax.ny.gov/pit/estate/etidx.htm. See NY_ESTATE_EXEMPTION_2025 for the basic exclusion amount.

New York estate exemption TY2025

“The basic exclusion amount for New York estate tax purposes is $7,160,000 for dates of death on or after January 1, 2025.”

Note: N.Y. Tax Law §951-c provides the basic exclusion amount for New York estate tax. For dates of death on or after January 1, 2025, the basic exclusion is $7,160,000 (CPI-adjusted annually). Verified from ny.gov estate tax page.

New York basic exclusion amount for TY2026: $7,350,000 (CPI-adjusted annually)

“The basic exclusion amount for dates of death on or after January 1, 2026, through December 31, 2026 is $7,350,000.”

Note: NY basic exclusion for TY2026 is $7,350,000 (CPI-adjusted annually; independent of federal). Cliff provision: if estate exceeds 105% of basic exclusion ($7,717,500 for 2026), exclusion is fully phased out and tax applies from dollar one at 3.06%, rising to 16%.

New York adopted the Uniform Disposition of Community Property Rights at Death Act

“This part may be cited as 'The New York uniform disposition of community property rights at death act.'”

Note: New York enacted UDCPRDA based on the 1971 NCCUSL model act. Protects community property character of assets acquired in community property states when a couple moves to New York.

New York top stated rate: 10.9% on New York taxable income above $25,000,000 (MFJ, TY2025)

“For taxable years beginning on or after January 1, 2023, the rates of tax imposed under this section are: 4% on income to $17,150; 4.5% from $17,151 to $23,600; 5.25% from $23,601 to $27,900; 5.85% from $27,901 to $161,550; 6.25% from $161,551 to $323,200; 6.85% from $323,201 to $2,155,350; 9.65% from $2,155,351 to $5,000,000; 10.3% from $5,000,001 to $25,000,000; and 10.9% above $25,000,000, for married individuals filing a joint return; provided, this subparagraph shall apply only to taxable years beginning on or after January first, two thousand twenty-one and before January first, two thousand twenty-eight.”

Note: The elevated brackets (9.65%, 10.3%, 10.9%) were extended through TY2032 by the FY2026 budget (A3009-C, signed 2025-05-09): N.Y. Tax Law §601 now applies them to taxable years beginning after 2025 and before 2033 ('FOR TAXABLE YEARS BEGINNING AFTER TWO THOUSAND TWENTY-FIVE AND BEFORE TWO THOUSAND THIRTY-THREE'). The 10.9% bracket applies above $25M (joint); for most high-capital-gain filers the operative range is 9.65% to 10.3%. The recapture trap (see NY_RATE_RECAPTURE) can produce higher effective rates between $107,650 and ~$161,500. No preferential LT rate: NY taxes capital gains as ordinary income at these rates. Standard deduction $16,050 MFJ (TY2025).

New York Source Income of Part-Year Residents

“Capital loss carryovers are determined based on federal rules, but you can only carry over losses to the extent they are from New York sources for part-year residents.”

New York pass-through entity tax: graduated 6.85% to 10.9% on PTE taxable income (top bracket above $25,000,000)

“If pass-through entity taxable income is: Not over $2,000,000 6.85% of taxable income. Over $2,000,000 but not over $5,000,000 $137,000 plus 9.65% of the excess over $2,000,000. Over $5,000,000 but not over $25,000,000 $426,500 plus 10.30% of excess over $5,000,000. Over $25,000,000 $2,486,500 plus 10.90% of the excess over $25,000,000.”

Note: SALT-cap workaround: Article 24-A PTET is an annual election by a partnership or S corporation. The graduated schedule tracks the top personal brackets (see §601); the 10.9% top bracket applies above $25M of PTE taxable income.

New York pass-through entity tax: graduated 6.85% to 10.9% on PTE taxable income (top bracket above $25,000,000)

“If pass-through entity taxable income is: Not over $2,000,000 6.85% of taxable income. Over $2,000,000 but not over $5,000,000 $137,000 plus 9.65% of the excess over $2,000,000. Over $5,000,000 but not over $25,000,000 $426,500 plus 10.30% of excess over $5,000,000. Over $25,000,000 $2,486,500 plus 10.90% of the excess over $25,000,000.”

Note: SALT-cap workaround: Article 24-A PTET is an annual election by a partnership or S corporation. The graduated schedule tracks the top personal brackets (see §601); the 10.9% top bracket applies above $25M of PTE taxable income.

New York PTET owners receive a credit against Article 22 personal income tax, computed under §606(kkk)

“shall be allowed a credit against the tax imposed pursuant to article twenty-two of this chapter, computed pursuant to the provisions of subsection (kkk) of section six hundred six of this chapter.”

New York PTET credit is the claimant's direct share of the PTET reported by the electing entity (a full credit)

“Each eligible credit claimant's PTET credit is equal to its direct share of the PTET that was reported by the electing entity on the entity's annual PTET return.”