NYC-WTC_000195490

NYC 9/11 Public Portal Document

PERSONAL INCOME TAX PERSONAL INCOME TAX 1992-2002 ! ; 6 -------------- ------- ------- ------- ------- r- The personal ineoine tax is projected to account for 21.2^ percent of tak 5 revenue in 2002, or $4,766 million. 4 t Tax Base and Rates: The personal I- income tax is imposed on the taxable eq i; income of resident individuals, estates and trusts. The starting point for determining taxable income is Federal 1 adjusted gross/income (AGI). This 0 ------ L__l------ ------ ----- ------------- ------ ------ ------ amount is adjusted for statutory 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 modifications to yield New York AGI- j Fiscal Year Taxable income is derived by subtracting Note: Personal income tax revenue after Transitional Finance Authority retention. E the New York deduction arid New York ■i

L' exemptions from New York AGI. Taxpayers may claim; the New York standard deduction of the New York S itemized deduction (Federal amount subject to New York modifications). High income taxpayers are subject to percentage reductions ;in their New York itemized deductions. Finally, taxpayers are allowed a flat exemption amount for each dependent. There are different tax rate schedules for single, head pf household, married taxpayers filing jointly and married taxpayers filing separately. These separate schedules were introduced in 1987. The current top marginal rate is 3.65 percent. In addition to the base tax, taxpayers who make extensive use of tax preferences are liable for a tax of 2.5 percent on their New York minimum taxable income. From 1971 through June 30, 1999, an earnings tax was levied on nonresidents’ New York City source income at a rate of 0.45 percent on wages and 0.65 percent on net earnings from self-employment. From 1966 through 1970, the earnings tax was levied at 0.25 percent on wages and 0.375 percent on net earnings from self-employment. The tax was eliminated by the State legislature, effective July 1, 1999.

2001 Rate Schedule

i i But Not ' Ofthe ' Over Over Pay Plus Amount Over

Rate i^Chedtile for Single Filers S 0 $12,000 $ 0 2.73% $ 0 If net income is: \ 12,000 25,000 328 3.32 12,000 25,000 50,000 759 3.37 25,000 50,000 1,601 3.65 50,000

Rate Schedule for Joint Filers $ 0 $21,600 $ 0 2.73% $ 0 If net income is: 21,600 45,000 590 3.32 ' 21,600 45,000 90,000 1,365 3.37 45,000 90,000 2,882 3.65 90,000

Rate Schedule for $ 0 $ 14,400 $ 0 2.73% $ 0 Head of Household Filers 14,400 30,000 393 3.32 14,400 If net income is: 30,000 60,000 911 331 30,000 60,000 i 1,922 3.65 60,000 Is

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NYC-WTC_000195544