But in the context of the tristate region, the income tax rates are:
NY 6.875%
NJ 6.3/9%
CT 5.0%
So NY cannot be said to have particularly high individual income tax rates for the region. High-income people in NJ may end up paying more.
"Under the 2003 legislation, the state and city each added two income tax rate brackets, retroactive to Jan. 1, 2003. The highest bracket, set at 7.7 percent on the state income tax and 4.45 percent on the city tax, applied to taxable incomes above $500,000 for all filers. The second highest bracket of 7.5 percent on state taxes and 4.25 percent on city taxes applied to incomes above $150,000 for married filers (or $100,000 for singles and $125,000 for heads of households). This produced a combined top rate of 12.15 percent, compared to 10.5 percent under the prior law. The top rates were scheduled to remain in effect for three full years, expiring at the end of 2005; the second-highest rates were to be phased out over the next two years."
"Under currently applicable New York State law, the highest marginal New York State income tax rate imposed on individuals for taxable years beginning in 2006 is 6.85%. This rate applies to a single individual with taxable income in excess of $20,000. Individual taxpayers with New York State adjusted gross income in excess of certain defined amounts must pay a supplemental tax intended to recapture the benefit of graduated tax rates.
"The highest marginal New York City income tax rate imposed on individuals is 3.2% for taxable years beginning in 2006. This rate applies to New York residents who are individuals with taxable income in excess of $50,000."