Personal Finance

Cuomo proposal would raise top tax rate for New York City to 14.7%, highest combined rate in nation

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Key Points
  • Gov. Andrew Cuomo proposed raising taxes for the wealthiest New Yorkers to a top rate of 10.86%, up from 8.82%.
  • New York City residents would pay a top rate of 14.7% in state and local taxes, the highest income tax rate in the nation, Cuomo said Tuesday in an address unveiling his 2022 budget.
  • The tax increase is part of a multi-pronged plan to reduce the state's historic budget deficit due to the Covid pandemic.
New York Gov. Andrew Cuomo
Lev Radin/Pacific Press/LightRocket via Getty Images

New York Gov. Andrew Cuomo proposed raising taxes on the wealthy to a combined level of 14.7%, which would be the highest state-and-local tax rate in the nation.

The tax increase would raise $1.5 billion for the state, Cuomo said Tuesday in an address unveiling his 2022 budget proposal.

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The move would be part of a three-pronged approach — raising revenue, cutting expenses and borrowing — to cover the state's historic budget shortfall due to Covid-19, Cuomo said.

"New York cannot manage a $15 billion deficit," according to Cuomo, who said the state's largest prior deficit was $10 billion. "It's beyond what we can do."

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The state would raise the top tax rate to 10.86%, up from 8.82%, Cuomo said. That would yield a top rate of 14.7% for the wealthiest New York City residents in combined taxes.

"[It] would be the highest income tax in the nation," Cuomo said.

This is a developing story. Please check back for updates.