Beginning January 1st, 38 states saw a change in tax structures from personal income, corporate, and sales taxes. Across the board, the combined changes will result in a net tax reduction for Americans, according to a Tax Foundation study.
In New York State, the new year means an accelerated income tax reduction, thanks to a measure passed in 2016 that impacts middle-income earners. The new rate on incomes between $13,900 and $80,650 (single filers) and incomes between $27,900 and $161,550 (joint filers) will be 5.5%.
For those who are single filers making between $80,650 and $214,400 or joint filers making between $161,500 and $323,200, the new rate will be 6%.
Also in 2023, New York will resume collecting a motor fuel excise tax, state sales tax on fuel, and Metropolitan Commuter Transportation District sales tax on motor fuel and diesel motor fuel on January 1, 2023. The suspension of those fuel taxes provided a price reduction of 16 cents per gallon since June 1, 2022, the report states.
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