New York · 2027 and beyond
New York in 2027 and beyond: what is already law, and what is still open
No statewide measure on the ballot. The five lowest rates fell 0.1 point for 2026 and fall another 0.1 for 2027. What is on the 2026 return, what starts with tax year 2027, and what is scheduled or conditional after that.
By Charles Trautman, EA, editor
Need to Know Tax · written from New York State Department of Taxation and Finance sources and the unofficial November 3 election returns, November 12, 2026 · not yet reviewed by a New York practitioner
No statewide measure on the ballot. The five lowest rates fell 0.1 point for 2026 and fall another 0.1 for 2027. This page keeps apart three things that get mixed together in the news: what is on the 2026 return you file in early 2027, what begins with tax year 2027, and what is scheduled, conditional or still undecided after that. Election figures are the unofficial November 3, 2026 returns and are not final until the state certifies them.
What the voters decided on November 3, 2026
No statewide tax measure was on the November 3, 2026 ballot in New York. Nothing voted on that day changes a New York return.
This return, next year, and later
| When | What applies |
|---|---|
| The 2026 return, filed in early 2027 | The five lowest rates are each 0.1 point lower; the top four did not move. |
| New York subtracts up to $25,000 of tips, to the extent deducted federally, beginning in 2026. | |
| The child care credit is refundable and figured on a new scale. | |
| The Empire State child credit is up to $1,000 for a child under 4 and $500 for ages 4 to 16. | |
| Starting with tax year 2027 | The five lowest rates fall another 0.1 point. |
| The Empire State child credit continues at the 2026 amounts for its last scheduled year. | |
| 2028 and later, or conditional | The three highest rates, 9.65%, 10.3% and 10.9%, now run through 2032 instead of expiring after 2027. |
Items under 2027 and later do not change the 2026 return. They matter for 2027 withholding, estimated payments and planning. The detail behind each line is in the other New York articles.
The 2025 federal law and the New York return
New York’s return starts from federal AGI. The overtime, senior and car-loan deductions do nothing here; the tips deduction counts only because the fiscal 2027 budget wrote a New York subtraction for it. New York decoupled from two federal business provisions.
That is the reason a change on the federal return, such as the deductions for tips, overtime and people 65 and older, may or may not show up on the New York return. The federal side is in The new deductions for tips, overtime and seniors.
What to watch
The fiscal 2028 budget, due April 1, 2027. When something on this page changes, the change is logged on the updates page with its date.
What to bring
- Your 2026 federal and New York returns, once filed, to set 2027 withholding and estimated payments against them
- Your last pay stub of 2026 and the first of 2027, to see whether withholding changed
- Any notice from the state about a 2027 rate, credit or filing change
Questions people ask
Does anything here change the New York return I file in early 2027?
Only what is listed under the 2026 return. Everything listed under 2027 or later affects withholding, estimated payments and planning, not the return for 2026.
How will I know if this page changes?
Every change is logged on the updates page with its date and the article it affects. State legislatures meet in early 2027 and some act before the filing deadline.
New York, after the election
No statewide measure on the ballot. The five lowest rates fell 0.1 point for 2026 and fall another 0.1 for 2027.
Written by Charles Trautman, EA, editor · Need to Know Tax, Lone Tree, Colorado
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Sources and where to check
- Department of Taxation and Finance, Publication NYS-50-T-NYS (1/26): 2026 rate schedules revised under Chapter 59 of the Laws of 2025
- Department of Taxation and Finance: Withholding tax rate changes effective January 1, 2026
- Department of Taxation and Finance: Instructions for Form IT-201 (2025), standard deduction, line 33 threshold, pension exclusion
- Department of Taxation and Finance: Empire State child credit
- Department of Taxation and Finance: Free e-file options and the $89,000 limit
- Governor’s office, May 9, 2025: FY2026 budget tax cuts, child credit and inflation refund checks
- Hodgson Russ: Tax provisions of the enacted 2026–27 New York budget (Parts A, B, C, F, AA, BB, FF)
- The CPA Journal: New York State’s 2026–2027 budget bill overview
- Ballotpedia: New York elections, 2026 (no statewide ballot measures)