Things to Know About Paying Taxes in New York
While New York City is one of the most popular cities in the world, the Big Apple also has some of the highest taxes in the United States. Whether it’s the state’s income tax, cigarette tax, property taxes, or others, there’s no doubt taxes play a big part for residents living in New York City. If you’re living in the Big Apple and need to know more about the variety of taxes that you’ll be paying, here are some factors to consider.
Since New York has some of the most expensive properties in the world, it’s only natural that property taxes are among the highest in the United States. Whether residential or commercial properties, bills are sent out each June and can be paid either in full with one payment, two payments, or even four payments. And for those who may need help paying their bills, New York offers a variety of exemptions. Senior citizens, disabled individuals, and veterans are eligible for numerous exemptions, making the process of paying their taxes much easier.
Since income tax rates can vary from year to year, this tax can be one of the most complicated for residents to pay. Based on income levels and filing status, the amount of tax paid is determined from a person’s state taxable income. However, just as there are exemptions for property taxes, residents also have options when it comes to their income tax. In some cases, tax credits can offset a person’s income tax, giving them much-needed relief.
Along with property and income taxes, New York also has numerous other taxes that affect residents. On most items bought, sales tax is charged. However, food items, prescription drugs, and non-prescription drugs are exempt from this tax. Along with this, those staying in hotel rooms can also expect to be charged state and local taxes. In some areas of the state, such as Orange, Westchester, and Nassau counties, a taxi cab ride tax is imposed. Generally passed on to customers, most passengers never realize they are paying this tax.
While it’s virtually impossible to escape paying taxes on most items, most New York residents realize these taxes come with the territory. Whether it’s paying property taxes on a beautiful house or paying sales tax on a new television or other item, there’s no doubt New York residents pay their fair share of taxes.
William Doonan is a tax law and legal expert in New York.