News & Press

New York State’s Tax Increase: What High Earners Need to Know

The new tax rates start Jan. 1, 2021, and apply to the tax year already in progress.

Even though 2021 tax returns aren’t due until next year, high earners whose employers withhold income taxes will likely see changes in their paychecks, said Alan Goldenberg, principal and leader of the state and local tax practice at accounting and advisory firm Anchin, Block & Anchin LLP.

“There probably will be a makeup,” he said. “You adjust tax rates to be slightly higher than the recorded rate here to make up for the first three months that have passed, to make sure people’s withholdings are properly withheld.”

New Yorkers with high incomes have long fled the state for low-tax states. Advisers to top earners say this could push more to consider moving, especially now that working remotely is more common.

Read the full article in The Wall Street Journal