Relates to personal income taxes in the city of New York

Summary

Extends certain provisions of law relating to tax rates and the imposition of income taxes in the city of New York.

Summary from NY Open Legislation. How we handle summaries

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Purpose, from the sponsor's memo

Sections 1 and 10 of the bill amend section 1212-A(a)(3) of the Tax Law and section 11-2040(a) of the New York City Administrative Code ("Admin- istrative Code"), relating to New York City's ("City") 4.5 percent sales tax on credit rating and credit reporting services. The tax is set to expire on November 30, 2026. The Tax Law amendment authorizes the City to impose the tax for an additional three years (until November 30, 2029). The Administrative Code amendment imposes the tax for an addi- tional three years (until November 30, 2029). Section 2 of the bill amends Tax Law section 1301(a)(1), relating to the tax on the personal income of residents of the City. The amendment of Tax Law section 1301(a)(1) authorizes the City to extend the existing rates of the personal income tax (the rates set forth in Tax Law section 1304(a)(1)(A), (a)(2)(A) and (a)(3)(A)) for an additional three years (for taxable years beginning before 2030) and delays the implementation of lower personal income tax rates (the rates set forth in Tax Law section 1304(b)) for three years (until taxable years beginning after 2030). Section 6 of the bill makes a conforming change to the opening paragraph of Administrative Code section 11-1701, which relates to the tax on the personal income of residents of the City. The amendment extends the existing personal income tax rates (the rates set forth in section 11-1701(a)) for an additional three years (for taxable years beginning before 2030) and delays the implementation of lower personal income tax rates (the rates set forth in section 11-1701(b)) for three years (until taxable years beginning after 2030). Sections 3 and 7 of the bill amend Tax Law section 1304(b) and Adminis- trative Code section 11-1701(b), relating to the tax on the personal income of residents of the City. They make conforming changes to the lower personal income tax rates, delaying their implementation for three years (until taxable years beginning after 2029). Sections 4 and 8 of the bill amend Tax Law section 1304-B(a) and Admin- istrative Code section 11-1704.1(a)(1), relating to the additional tax on City taxable income. The Tax Law amendment authorizes the City to impose the additional tax for an additional three years at the rate of 14 percent (for taxable years beginning before 2030) and extends the authority of the City to reduce the additional tax for taxable years beginning before 2030. The Administrative Code amendment imposes the additional tax for an additional three years at the rate of 14 percent (for taxable years beginning before 2030). Sections 5, 12 and 13 of the bill amend section 11-604(1)(E) of the Administrative Code, Chapter 884 of the Laws of 1975 and Chapter 882 of the Laws of 1977, relating to the City general corporation tax. The current tax rate is the greater of 8.85 percent on income, 1.5 mills on business and investment capital, 8.85 percent of 15 percent of income plus the amount of salaries and other compensation paid to any person who at any time during the taxable year owned more than 5 percent of the taxpayer's capital stock or a minimum tax based on the amount of New York city receipts. There is also a 0.75 mill tax on subsidiary capital. (On January 1, 2027, the rates are scheduled to drop to 6.7 percent, 1 mill, 6.7 percent on 30 percent of income plus salaries and other compensation paid to any person who owned more than 5 percent of the taxpayer's capital stock, and $25, respectively, and .5 mil on subsid- iary capital.) The amendments will continue the current rates until December 31, 2029. Section 9 of the bill amends Administrative Code section 11-2002(a), relating to the 4.5 percent sales tax on beauty and barbering services and other services. The amendment imposes the tax for an additional three years (until November 30, 2029). (Tax Law section 1212-A(a)(2) authorizes the City to impose a sales tax on beauty and barbering services.) Section 11 of the bill amends Chapter 877 of the laws of 1975,

Filed with the bill. Read it on nysenate.gov (opens in a new tab)

Where it stands

Passed one of the two chambers; it still needs the other.

Investigations And Government Operations · New York State Senate

Also referred to Ways and Means · New York State Assembly.

Recorded votes

• Vote: Committee vote · Rules

  Senate RulesJun 2, 2026Result: passed

  Voted yes (16)Voted no (4)Voted present (0)Absent (1)

  See member positions for the vote on Jun 2, 2026 (Committee vote · Rules)

• Vote: Floor vote

  NY SenateJun 2, 2026Result: passed

  Voted yes (41)Voted no (20)Voted present (0)Absent (2)

  See member positions for the vote on Jun 2, 2026 (Floor vote)

Full history

1. Jun 2, 2026

   In committee

   COMMITTEE DISCHARGED AND COMMITTED TO RULES

   NY Senate

2. Jun 2, 2026

   Sent to the executive

   DELIVERED TO ASSEMBLY

   NY Senate

3. Jun 2, 2026

   Ordered to Third Reading CAL.1603

   ORDERED TO THIRD READING CAL.1603

   NY Senate

4. Jun 2, 2026

   Passed a chamber

   PASSED SENATE

   NY Senate

5. Jun 1, 2026

   Referred to committee

   REFERRED TO WAYS AND MEANS

   NY Assembly