New York issues new withholding tables for New York City

New York has issued new withholding tables for New York City due to changes in the income tax rate. The amendments eliminate the personal income tax rate reduction relating to the STAR Program for New York City taxpayers with city taxable income of $500,000 or less, offset by an expansion of the existing New York City school tax credit to provide an additional amount to individuals with New York City taxable income of $500,000 or less. The amendments apply to tax years beginning on or after January 1, 2017.

The supplemental wage rate will be 4.25%. The tables are effective July 1, 2017. The exact calculation and conversion tables are reproduced in this Report Letter on pages 15-23. All of the tables will be reproduced in the Payroll Management Guide beginning at 7548 in an early release. (Chapter 59 (Part C) of the Laws of 2017 amended Tax Law § 606(ggg) and 1304(a) and § 11-1701(a) of the Administrative Code of the City of New York; New York Department of Taxation and Finance, New York City Withholding Tax Tables and Methods, Effective July 1, 2017; New York Department of Taxation and Finance, Important Notice N-17-5, May 2017.)

Visit our News Library to read more news stories.