As a result of recent law changes, the New York State personal income tax rates and the Yonkers resident personal income surcharge tax rates have changed for certain taxpayers. These employees may see a significant increase in their New York State or Yonkers tax withholding.
Note: High-income individuals, employees with multiple jobs or married couples with higher combined incomes should review their NYS State and Yonkers withholding allowances to ensure sufficient tax withholding for 2009.
The new State personal income tax brackets and rates are retroactive to January 1, 2009 per the Budget enacted April 7, 2009. Please refer to the Laws of 2009, Chapter 57, Part Z-1 for more information.
While the new rates were issued by the Department of Taxation and Finance effective for paychecks issued after May 1, 2009, the increased rates are based on the employee’s calendar year earnings.