NY State Senate Bill 2025-S8720

Current Bill Status - In Senate Committee Budget And Revenue Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 07, 2026	referred to budget and revenue

2025-S8720 (ACTIVE) - Details

Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §601, rpld §601 sub (a) ¶1 sub¶ (B) cl (ix), sub (b) ¶1 sub¶ (B) cl (ix), sub (c), ¶1 sub¶(B) cl (ix), Tax L

2025-S8720 (ACTIVE) - Summary

Makes certain higher personal income tax rates permanent.

2025-S8720 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8720

SPONSOR: GOUNARDES
 
TITLE OF BILL:

An act to amend the tax law, in relation to making certain higher
personal income tax rates permanent; and to repeal certain provisions of
such law relating thereto

 
PURPOSE OR GENERAL IDEA OF BILL:

To permanently codify the state's highest personal income tax rates on
extremely wealthy filers which have been in effect since 2021

 
SUMMARY OF PROVISIONS:

Section one of this bill amends clause (viii) of subparagraph (B) of
paragraph 1 of subdivision (a) of Section 601 of the Tax Law, which sets
the tax rates for those who are married filing jointly and surviving
spouses. This amendment permanently codifies the top tax rate of 9.65%
for filers in this category making more than $2.1 million, 10.3% for
filers making more than $5 million, and 10.9% for filers making more

than $25 million.

Section two of this bill repeals clause (ix) of subparagraph (B) of
paragraph 1 of subdivision (a) of Section 601, which would have reverted
the tax table back to the top rate of 8.82% for all filers in this cate-
gory making more than $2.1 million in 2033.

Section three of this bill amends clause (viii) of subparagraph (B) of
paragraph 1 of subdivision (b) of Section 601 of the Tax Law, which sets
the tax rates for heads of household. This amendment permanently codi-
fies the top tax rate of 9.65% for filers in this category making more
than $1.6 million, 10.3% for filers making more than $5 million, and
10.9% for filers making more than $25 million.

Section four of this bill repeals clause (ix) of subparagraph (B) of
paragraph 1 of subdivision (b) of Section 601, which would have reverted
the tax table back to the top rate of 8.82% for all filers in this cate-
gory making more than $1.6 million in 2033.

Section five of this bill amends clause (viii) of subparagraph (B) of
paragraph 1 of subdivision (c ) of Section 601 of the Tax Law, which
sets the tax rates for those who are single or married filing separate-
ly. This amendment permanently codifies the top tax rates of 9.65% for
filers in this category making more than $1 million, 10.3% for filers
making more than $5 million, and 10.9% for filers making more than $25
million.

Section six of this bill repeals clause (ix) of subparagraph (B) of
paragraph 1 of subdivision (c ) of Section 601, which would have
reverted the tax table back to the top rate of 8.82% for all filers in
this category making more than $1 million in 2033.

Section seven of this bill sets the effective date.

 
JUSTIFICATION:


In April 2021, New York State first created its current tax rate for its
highest income filers in Part A of Ch. 59, the Revenue budget.  Previ-
ously, taxpayers in the top bracket of more than $1.6 million had been
subject to a top rate of only 8.82%, which was far lower than the top
rate in many other states such as California, Hawaii, Massachusetts,
Minnesota, New Jersey, and Oregon. Understanding that the state would
not be able to fund basic social services such as education, Medicaid,
public transportation, and affordable housing absent billions more in
state spending, the Governor and the legislature agreed to raise taxes
on the wealthiest of filers in the 2021 enacted budget, creating a set
of higher graduated rates ranging from 9.65% for filers making more than
$1 million to 10.9% for filers making more than $25 million. While the
legislature has extended the top set of brackets since then, the fact
that they are slated to sunset in 2033 complicates the state's long-term
fiscal forecast while leaving open the possibility that a future execu-
tive or legislature could respond to shifting political winds by letting
the 10.9% rate lapse, lurching the state billions of dollars into debt.

This bill removes this hypothetical by permanently codifying the top
10.9% personal income tax rate. It maintains the status quo for the most
fortunate amongst us, who just received a massive tax break under the
2025 One Big Beautiful Bill Act, which will send over 1/3 of its net tax
reductions to those making more than $500,000 by calendar year 2027.1 By
asking filers making more than $1 million to continue remitting the same
taxes to the state in the future that they do today, this bill will
remove the possibility of a near-term fiscal cliff while allowing poli-
cymakers and advocates to focus on other revenue problems and solutions
instead.

 
PRIOR LEGISLATIVE HISTORY:

None

 
FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
This act shall take effect immediately.
1 DiNapoli, New York State Comptroller Tom. Tax Provisions under the
Federal Reconciliation Bill. New York State Comptroller, 2025.

2025-S8720 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8720
 
                             I N  S E N A T E
 
                              January 7, 2026
                                ___________
 
 Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN  ACT  to  amend  the  tax  law,  in relation to making certain higher
   personal income tax rates permanent; and to repeal certain  provisions
   of such law relating thereto
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Clause (viii) of subparagraph (B) of paragraph 1 of  subdi-
 vision  (a) of section 601 of the tax law, as added by section 2 of part
 B of chapter 59 of the laws of 2025, is amended to read as follows:
   (viii) For taxable years beginning after two thousand twenty-six  [and
 before two thousand thirty-three] the following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $17,150                      3.80% of the New York taxable
                                       income
 Over $17,150 but not over $23,600     $652 plus 4.30% of excess over
                                       $17,150
 Over $23,600 but not over $27,900     $929 plus 5.05% of excess over
                                       $23,600
 Over $27,900 but not over $161,550    $1,146 plus 5.30% of excess over
                                       $27,900
 Over $161,550 but not over $323,200   $8,229 plus 5.80% of excess
                                       over $161,550
 Over $323,200 but not over            $17,605 plus 6.85% of excess
 $2,155,350                            over $323,200
 Over $2,155,350 but not over          $143,107 plus 9.65% of excess
 $5,000,000                            over $2,155,350
 Over $5,000,000 but not over          $417,616 plus 10.30% of excess
 $25,000,000                           over $5,000,000
 Over $25,000,000                      $2,477,616 plus 10.90% of excess
                                       over $25,000,000
 
   § 2. Clause (ix) of subparagraph (B) of paragraph 1 of subdivision (a)
 of section 601 of the tax law is REPEALED.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD14192-01-5
 S. 8720                             2
 
   §  3.  Clause (viii) of subparagraph (B) of paragraph 1 of subdivision
 (b) of section 601 of the tax law, as added by section 4 of  part  B  of
 chapter 59 of the laws of 2025, is amended to read as follows:
   (viii)  For taxable years beginning after two thousand twenty-six [and
 before two thousand thirty-three] the following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $12,800                      3.80% of the New York taxable
                                       income
 Over $12,800 but not over             $486 plus 4.30% of excess over
 $17,650                               $12,800
 Over $17,650 but not over             $695 plus 5.05% of excess over
 $20,900                               $17,650
 Over $20,900 but not over             $859 plus 5.30% of excess over
 $107,650                              $20,900
 Over $107,650 but not over            $5,457 plus 5.80% of excess
 $269,300                              over $107,650
 Over $269,300 but not over            $14,833 plus 6.85% of excess
 $1,616,450                            over $269,300
 Over $1,616,450 but not over          $107,113 plus 9.65% of excess
 $5,000,000                            over $1,616,450
 Over $5,000,000 but not over          $433,626 plus 10.30% of excess
 $25,000,000                           over $5,000,000
 Over $25,000,000                      $2,493,626 plus 10.90% of excess
                                       over $25,000,000

   § 4. Clause (ix) of subparagraph (B) of paragraph 1 of subdivision (b)
 of section 601 of the tax law is REPEALED.
   § 5. Clause (viii) of subparagraph (B) of paragraph 1  of  subdivision
 (c)  of  section  601 of the tax law, as added by section 6 of part B of
 chapter 59 of the laws of 2025, is amended to read as follows:
   (viii) For taxable years beginning after two thousand twenty-six  [and
 before two thousand thirty-three] the following rates shall apply:
 If the New York taxable income is:    The tax is:
 Not over $8,500                       3.80% of the New York taxable income
 Over $8,500 but not over $11,700      $323 plus 4.30% of excess over
                                       $8,500
 Over $11,700 but not over $13,900     $461 plus 5.05% of excess over
                                       $11,700
 Over $13,900 but not over $80,650     $572 plus 5.30% of excess over
                                       $13,900
 Over $80,650 but not over $215,400    $4,110 plus 5.80% of excess
                                       over $80,650
 Over $215,400 but not over            $11,926 plus 6.85% of excess
 $1,077,550                            over $215,400
 Over $1,077,550 but not over          $70,983 plus 9.65% of excess
 $5,000,000                            over $1,077,550
 Over $5,000,000 but not over          $449,499 plus 10.30% of excess
 $25,000,000                           over $5,000,000
 Over $25,000,000                      $2,509,499 plus 10.90% of excess
                                       over $25,000,000
   § 6. Clause (ix) of subparagraph (B) of paragraph 1 of subdivision (c)
 of section 601 of the tax law is REPEALED.
   § 7. This act shall take effect immediately.

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Senate Bill S8720

Sponsored By

Current Bill Status - In Senate Committee Budget And Revenue Committee

Actions

2025-S8720 (ACTIVE) - Details

2025-S8720 (ACTIVE) - Summary

2025-S8720 (ACTIVE) - Sponsor Memo

2025-S8720 (ACTIVE) - Bill Text download pdf

Comments

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Sponsored By

Andrew Gounardes

Current Bill Status - In Senate Committee Budget And Revenue Committee

Actions

2025-S8720 (ACTIVE) - Details

2025-S8720 (ACTIVE) - Summary

2025-S8720 (ACTIVE) - Sponsor Memo

2025-S8720 (ACTIVE) - Bill Text download pdf

Comments