Plan Would Double Income Taxes for N.Y.’s Wealthiest

This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.

The New York Sun

Days before a state commission unveils its recommendations for imposing a cap on local property tax increases, Assembly Democrats are lining up behind another plan that would distribute money from the state’s wealthiest residents to middle-class homeowners in the form of a property tax cut.

Under a plan advanced by the labor-backed Working Families Party, the wealthiest New Yorkers would see their state personal income taxes more than double.

Marginal income between $500,000 and $1 million would be taxed at a rate of 9.35%. Between $1 million and $5 million, the rate would go up to 10.35%. From $5 million to $10 million, the rate would be 11.85%. Income above $10 million would be taxed at $13.85%, which is more than double the current rate of 6.85%.

Party officials said the tax hike would generate $6.5 billion a year for the state and would apply to just fewer than 100,000 filers.

The money would be used to pay for a property tax break for households with up to $250,000 in gross adjusted income. The plan would give rebates to homeowners when their taxes consume a certain percentage of their income. The rebate would cover 70% of the taxes owed above the percentage cap, which would range between 5% and 9% of income.

The speaker of the Assembly, Sheldon Silver, who supports a tax increase on the state’s wealthiest residents, has not taken a position on the Working Families Party plan. Several Assembly Democrats have indicated their support for the labor party’s proposal.

Senate Republicans have said they would oppose increasing the personal income tax.

A special state commission led by the Nassau County executive, Thomas Suozzi, is expected this week to recommend a property tax cap that would prevent school districts from raising taxes by more than 3% to 4% a year.


The New York Sun

© 2025 The New York Sun Company, LLC. All rights reserved.

Use of this site constitutes acceptance of our Terms of Use and Privacy Policy. The material on this site is protected by copyright law and may not be reproduced, distributed, transmitted, cached or otherwise used.

The New York Sun

Sign in or  create a free account

or
By continuing you agree to our Privacy Policy and Terms of Use