By: William Bricker & Maria Pigna
Governor Cuomo signed the 2022 Budget Bill into law on Monday April 19, 2021. The effect of the new law is to raise New York State tax rates for corporations and individuals. The new tax rates are effective immediately, applying to taxable years beginning on and after January 1, 2021.
The New York State press releases state that individuals will pay less tax if the Federal tax limitation on the deductibility of state and local taxes (“SALT”) is repealed. However, the repeal of the SALT deduction limitation is far from clear. If the SALT limitation is not repealed, the tax rates for many New Yorkers will increase.