From city-level taxes NYC can enact to state-level asks requiring Albany. Includes the Invest in Our New York campaign bills.
Earn $1M+? NYC income tax rate goes up 2 percentage points. Bill: S.8577/A.8953.
Finance firms: 9%→10.8%. Others: 8.85%→10.62%. Taxed on NY sales, not office location.
Rate rises 4%→4.4% only for businesses with income over $5M.
LLC/S-corp PTET credit drops from 100% to 75%.
1% extra annual tax on residential properties worth $5M+.
1% on cash-only purchases over $1M.
Tax on residential property sales over $5M. Both houses backed ~1.4-point rate increase on expensive sales.
Remove sales tax exemption on bullion/coins over $1K. Primary targets: banks and institutional investors buying billions in gold as hedges. Bill: S.7875. Split: $300M NYC, $601M state.
Raises taxes on companies with over $2.5M in profits. Bill: S.953/A.1971.
State surcharge on capital gains over $500K/year. Bill: S.1439/A.676.
Creates a three-part system: revised estate tax ($750K exemption), new inheritance tax on recipients ($250K per-heir exemption), and a new gift tax. Key protections: spousal transfers exempt, primary residence exclusion up to $1.75M, retirement accounts excluded, family farms and small businesses can defer. Bill: S.914/A.2049.
Restructures NYS income tax with 11 new brackets above $500K, topping out at 24% on income over $20M. No change for anyone under $323K. Earners from $500K–$1M may actually pay less than under current temporary surcharges. Real increases start at $1M+. Bill: S.1622/A.1281.
Money the state has taken away or forced the city to cover. All originate at the state level.
| Program | Plain English | Source | Cost |
|---|---|---|---|
| MTA — $480M | |||
| Paratransit cost shift | State pushing Access-A-Ride costs onto the city | State | $300M |
| Internet sales tax intercept | State keeping online sales tax that used to go to NYC | State | $180M |
| Health & Human Services — $1.5B | |||
| eFMAP withholding | State withholding enhanced federal Medicaid funds | State federal $ withheld by state | $343M |
| H+H cost shift | Disallowed indigent care claims at public hospitals | State | $57M |
| Foster care tuition | Eliminated reimbursement for foster children's education | State | $44M |
| TANF reimbursement cut | Welfare reimbursement cut from 100% to 85% | State TANF is federal, admin by state | $193M |
| Advantage Program cut | Reduced homeless-to-housing transition funding | State | $65M |
| Adult shelter cap | State capped shelter reimbursement | State | $500M |
| Foster care/adoption | NYC pays max rates with no state help | State | $263M |
| Public Protection — $40M | |||
| Close to Home eliminated | Cut community-based juvenile justice funding | State | $40M |
| Revenue Sharing — $302M | |||
| AIM funding eliminated | NYC is the only eligible municipality that gets zero | State | $302M |
| Total annual cost to NYC | $2.3B | ||
Each proposal has a case for and against. Here they are, side by side.
Only hits income above $1M — doesn't touch anyone earning less (S.8577/A.8953). NYC millionaires already pay ~41% of the city's entire income tax bill. Massachusetts passed a similar 4% surtax and it dramatically beat revenue projections. The bill sponsor estimates ~$4B annually.
Requires Albany to pass enabling legislation, then City Council must enact it — two political hurdles, not one. NYC already has the highest combined city+state income tax in the country. Millionaires are the most mobile taxpayers and can relocate to Florida or Connecticut.
NY uses single-sales-factor apportionment — companies pay based on what they sell to NY customers, not where offices are. Moving HQ to Texas doesn't change the tax bill. 75% of corporate tax comes from ~500 companies with captive NY customer bases.
Even if the tax follows sales, companies can grow headcount elsewhere. JPMorgan already employs more people in Texas than New York. The city collects the business tax but quietly loses the well-paid employees whose income taxes are worth more.
Only affects businesses reporting over $5M in income — your neighborhood accountant or small contractor pays nothing extra. A modest 0.4 percentage point increase on the very highest earners in an already-existing tax.
Wealthy business owners have accountants who can restructure — by incorporating, shifting income, or relocating. Piles onto all other tax increases hitting business owners simultaneously. Actual revenue may fall well short of $250M.
The PTET credit was created to soften the 2017 federal SALT cap. Congress raised that cap to $40K in 2025, so the original justification for a 100% rebate has largely evaporated. Cutting to 75% is a reasonable adjustment.
The $40K SALT cap phases out entirely for earners over $600K — exactly the partners this targets. They get zero federal relief. And the SALT cap reverts to $10K in 2030, meaning a double hit in just a few years.
You can't move a townhouse to Florida. Real property is the hardest asset to shelter from a local tax. Only affects homes worth $5M+ — Park Avenue co-ops and Brooklyn Heights brownstones, not typical homeowners.
Once a property surcharge exists, it's easier to lower the threshold. Today's $5M floor could become tomorrow's $1M floor in the next budget crisis. There's already a separate 9.5% property tax hike sitting in reserve as a fallback.
A record 69% of Manhattan transactions in Q2 2025 were all-cash. Foreign buyers — 47% of whom pay all-cash nationally — doubled in NYC in early 2025. Chinese buyers pay cash 71% of the time. LLC purchases (often used to shield ownership) make up 11% of all NYC sales. A 1% fee on cash purchases over $1M creates transparency and revenue from a market that currently avoids mortgage scrutiny.
Not all cash buyers are suspicious — many are wealthy retirees, downsizers, or investors who simply don't need financing. Stacking transfer taxes can freeze luxury sales. The LA mansion tax raised only 32 cents on the dollar as transactions collapsed. The real transparency fix is beneficial ownership disclosure, not a blanket tax on cash.
NYC created the first mansion tax in 1982 and it's still in effect — 1% on purchases over $1M (never inflation-adjusted). A supplemental tax already applies at higher tiers. This proposal expands rates on $5M+ sales. Graduated transfer taxes are a proven, low-drama revenue source used in 17+ U.S. cities.
Too many transaction taxes can freeze the market that generates them. Real estate deals create ripple effects — construction, broker commissions, renovation spending. Luxury buyers may sit on the sidelines or split properties to avoid thresholds. The $1M mansion tax threshold set in 1982 now catches ordinary apartments — mission creep is real.
The bill sponsor notes that in 2025 alone, two multinational banks purchased ~$4B in gold as a hedge against short positions — tax-free. The $601M state revenue loss comes overwhelmingly from institutional and high-net-worth investors, not retail coin collectors. The bill (S.7875) would still exempt purchases by banks, governments, and the UN — it specifically targets private investment purchases. Gold ETFs and funds buying physical bullion in NY would also pay.
40+ states exempt bullion from sales tax. Retail buyers and small dealers would be caught alongside big banks. Enforcement is difficult — buyers can purchase online from out-of-state dealers. The bill was dropped from the 2025 budget after dealer lobbying, suggesting political headwinds remain strong.
Targets companies with $2.5M+ in profits (S.953/A.1971). Corporations pay less in taxes now than in the 1990s. Keeps NY competitive with northeast neighbors while raising revenue from record profits.
New York already has among the highest state corporate tax rates. Adding more brackets makes the state less competitive with Texas and Florida, which have no corporate income tax. Companies choose where to expand headcount.
Investment profits are taxed at lower rates than wages (S.1439/A.676). A hedge fund manager making $10M in stock sales pays a lower rate than a nurse making $80K. This closes that gap. Washington State's version survived a voter repeal attempt.
Unlike a paycheck, you choose when to sell stocks. Wealthy investors can wait until they've moved to Florida, then sell. The $12B estimate assumes people behave as before — they won't. Washington's revenue fell 45% in year two from market volatility alone.
The bill (S.914) has substantial protections for typical families: spousal transfers fully exempt, primary residences up to $1.75M excluded (covers the median home in every borough), retirement accounts excluded, family farms and small businesses under $5M can defer. A homeowner who's lived in a $1.5M apartment for 10+ years with a 401(k) and limited other assets would owe little or nothing. The per-heir $250K exemption rewards splitting — a $2M estate among four children means $500K each, only $250K taxable at 5%. The real targets are large non-residence wealth: investment portfolios, second homes, business equity over $5M. Currently a single heir can inherit $7.35M and pay nothing.
The $750K estate exemption sounds low, but most NYC homeowners with a single long-term residence worth under $1.75M, limited other assets, and retirement accounts (which are excluded) would be substantially shielded. The real pain falls on people with significant non-residence assets or multiple properties. The new gift tax ($750K lifetime) closes the main pre-death escape route. The three-tax system creates compliance complexity. And notably, Scandinavian countries — the models for progressive taxation — have mostly abolished estate/inheritance taxes: Sweden (2005), Norway (2014), and Denmark exempts direct heirs (children, spouses) entirely — only taxing non-family recipients at 36.25%. They chose high income and consumption taxes over estate-level taxation. NJ repealed its estate tax over flight but still has an inheritance tax — and NJ is next door. Note: this is the Senate version; Assembly version may differ.
The bill (S.1622) doesn't raise taxes on anyone under $323K. Earners from $500K–$1M may actually pay less than the current temporary surcharges (7.5–9% vs 8.82%). The real increases target $2M+ (12%→24% topping at $20M+). Currently a billionaire pays the same 10.90% state rate as someone earning $25M — the bill differentiates them. The $21B revenue is the largest single proposal and would fund statewide services.
The top proposed rate of 24% state income tax, combined with NYC's city income tax (~3.9%), would create a combined state+city marginal rate near 28% — before federal taxes. That's among the highest in the world for a subnational jurisdiction. The steep escalation from 10% at $1M to 24% at $20M creates enormous incentive for the wealthiest (who are the most mobile) to establish residency elsewhere. Florida has zero state income tax. The current temporary surcharges already raised rates significantly — this more than doubles the top rate.
Real-world results from cities and states that tried similar proposals. Success on the left, cautionary tale on the right.
A 4% surtax on incomes over $1M generated ~$2.2B in its first full year and nearly $3B in year two — far above the initial $1.5B forecast. Funded free school lunches, community college, and transit. The number of millionaires in the state grew 39% from 2022 to 2024. Snopes (nonpartisan fact-check) · Boston.com · CPA Practice Advisor
Tufts University (cSPA) analysis estimated behavioral changes would reduce expected revenue by ~35%. Revenue surges in stock booms and crashes in downturns. Some high-profile executives left for Florida citing the surtax. Tufts cSPA (nonpartisan academic)
Proposition 2 raised the gross receipts tax on large businesses by 50%+ while eliminating it for 75% of smaller businesses. Projects $80–90M in new annual revenue. Passed with 68% voter support. Note: WA has no corporate income tax — Seattle's B&O is a gross receipts tax, structurally different from NYC's corporate income tax. Ballotpedia (nonpartisan)
Microsoft removed all Seattle businesses; Amazon relocated employees to Bellevue. However, WA has no state income tax, so the B&O tax is the only business tax — making it more salient than in NYC where corporate income tax is one of many layers. The comparison has limits. King County Elections (opponent statement)
NYC created the first mansion tax in 1982 (1% on purchases over $1M) — it's still active and generates steady revenue. As of 2024, 17 U.S. cities/counties have progressive transfer taxes, collectively raising ~$3B annually. Santa Fe voters approved a 3% mansion tax in 2023 by 73–27%. The proposal expands NYC's existing framework, not a new experiment. Lincoln Institute (nonpartisan research)
LA passed a 4–5.5% transfer tax on properties over $5M, projecting $672M annually. It raised only $215M — about 32 cents on the dollar. Sales of homes over $5M dropped from 138 in the month before to just 2 the following month. CA LAO (nonpartisan state fiscal analyst)
A 7% capital gains tax generated $786M in year one — above projections. Funded 10,000+ childcare slots and 171 school construction projects. Voters rejected a repeal measure in 2024. The tax was expanded in 2025 with a higher tier for gains over $1M. WA Dept of Revenue (government)
After the $786M debut, collections dropped to $433M from a cooler stock market. But WA addressed this by design: the law creates a reserve fund for surplus years to maintain spending in lean years. Massachusetts did the same with its millionaire surtax. Volatility means "budget carefully" — not "don't collect." WA Dept of Revenue (government)
Oregon has the lowest estate tax exemption in the country ($1M) and collected $339M in fiscal year 2024 (~$700M per biennium), up from $102M in 2012. Maryland generated $225M in 2023 with a $5M exemption. Both show lower thresholds can function as durable revenue. OR Legislative Revenue Office (government)
NJ repealed its estate tax (levied on the total estate) in 2018, abandoning ~$550M in projected annual revenue due to wealthy retiree flight to Florida and Delaware. However, NJ still has an inheritance tax (levied on individual recipients based on their relationship to the deceased) — one of only six states that does. The estate tax was the driver of flight because it applied regardless of who inherited. Tax Foundation (center-right think tank)
NYC median home prices (early 2026): Manhattan $1.2M, Brooklyn $1M, Queens $405K–$513K, Bronx $249K–$294K. Citywide median: ~$770K–$875K. PropertyShark · Redfin
Spouses pay nothing. S.914 explicitly excludes spousal transfers from both the inheritance tax and the estate tax. The bill comes when the surviving spouse dies and assets pass to children or others. Bartal Law
Primary residence protection. The bill excludes up to $1.75M of a primary residence from the inheritance tax if the heir or decedent lived there for 10+ consecutive years (or $750K for FHA-mortgaged homes). This currently covers the median home in every borough. However, the threshold is not indexed to inflation — so as property values rise, it will erode over time, eventually leaving more homeowners exposed. The 10-year occupancy requirement also excludes anyone who moved recently. Note: this is the Senate version (S.914); the Assembly version may differ.
Retirement accounts excluded. 401(k)s, IRAs, Roth IRAs, HSAs, and pensions are explicitly excluded from the inheritance income tax. They still count toward the $750K estate tax threshold, but the heir doesn't pay the separate inheritance tax on them.
Per-heir exemption. The $250K inheritance tax exemption is per recipient, not per estate. An estate worth $2M split equally among four children gives each $500K — of which only $250K is taxable at 5%. A single heir inheriting $2M would owe much more. The bill rewards splitting.
Family business and home deferrals. If you inherit mostly a home or family business (50%+ of the estate, total under $5M), you can defer the tax until you sell — so you're not forced to sell grandma's apartment to pay the tax bill.
What still hurts. The $750K estate tax exemption (down from $7.35M) catches nearly every NYC homeowner on the estate side, even though the $1.75M residence exclusion softens the inheritance side. The new gift tax ($750K lifetime) closes the main pre-death escape route. The three-tax structure (estate + inheritance + gift) creates compliance costs that fall hardest on middle-wealth families without lawyers on retainer. And none of the thresholds are indexed to inflation.
The cliff. Under current NY law, estates exceeding 105% of the exemption lose it entirely. It's unclear whether S.914 retains this cliff — the bill only references it for pre-April 2025 deaths. If the cliff is eliminated, the new system would be significantly less punishing at the margins. NY Legacy Lawyers
Massachusetts law requires all Fair Share revenue to fund education and transportation. By FY2026 it spent $2.4B on free school lunches, community college, early literacy, transit, and pre-K. WBUR (public media) · Governing (nonpartisan)
Both cities lost population despite high taxes and services in the 1970s–80s. However, their decline was driven by auto industry collapse, offshoring, and white flight — not by tax-funded services failing. NYC is a financial and cultural hub with agglomeration effects those cities never had. Goldman Sachs can't easily move its talent ecosystem to Dallas the way GM moved factories to Mexico. This comparison has real limits.
Tax jargon translated. Click any term to understand what it means and why it matters.
Every source linked throughout this site, grouped by category. Bias noted where applicable.
12 questions. We estimate whether these proposals cost you or benefit you.
Estimates only. Largest proposals need Albany. Revenue could be 30–60% lower. Scores = direct first-order impact.