Just in time for Spring, New Yorkers are getting a much-needed tax break. As of April 1st, we’ll no longer have to pay the four percent state portion of the sales tax on clothing and footwear purchases up to $110 per item. This will save consumers an estimated $210 million over the year.
It’s the latest tax break for New Yorkers, and consistent with Governor Cuomo’s efforts to restore fairness to our state’s tax code. Just last December, the Governor and legislators reformed the tax code to lower income taxes for 4.4 million New Yorkers and boost our state’s economy.
Governor Cuomo’s plan, which took effect January 1st, included a new personal income tax rate that will save middle class New Yorkers over $690 million annually. Under the new rate structure, middle class New Yorkers are now paying the lowest tax rates in 58 years. This means that the average New Yorker will save between $300 and $400 in income taxes for 2012.
The Governor and the Legislature’s plan also eliminated the MTA payroll tax for over 700,000 taxpayers who own small businesses or make less than $50,000 a year in self-employed income. This will save New Yorkers an additional $250 million a year.
Combined, the Governor’s tax cuts will save middle class New Yorkers and small businesses $900 million this year.
