S T A T E O F N E W Y O R K
________________________________________________________________________
10738
I N A S S E M B L Y
March 27, 2026
___________
Introduced by M. of A. BURKE -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to providing a cost of living
adjustment to income taxes
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
subsection (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 AND DOLLAR AMOUNTS
shall apply, PROVIDED HOWEVER THAT SUCH DOLLAR AMOUNTS SHALL BE ADJUSTED
BY THE COST OF LIVING ADJUSTMENT PRESCRIBED IN SECTION SIX HUNDRED ONE-A
OF THIS PART:
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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14557-01-6
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§ 2. Clause (ix) of subparagraph (B) of paragraph 1 of subsection (a)
of section 601 of the tax law, as added by section 2 of part B of chap-
ter 59 of the laws of 2025, is amended to read as follows:
(ix) For taxable years beginning after two thousand thirty-two the
following rates AND DOLLAR AMOUNTS shall apply, PROVIDED HOWEVER THAT
SUCH DOLLAR AMOUNTS SHALL BE ADJUSTED BY THE COST OF LIVING ADJUSTMENT
PRESCRIBED IN SECTION SIX HUNDRED ONE-A OF THIS PART:
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 $143,107 plus 8.82% of excess
over $2,155,350
§ 3. Clause (viii) of subparagraph (B) of paragraph 1 of subsection
(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 AND DOLLAR AMOUNTS
shall apply, PROVIDED HOWEVER THAT SUCH DOLLAR AMOUNTS SHALL BE ADJUSTED
BY THE COST OF LIVING ADJUSTMENT PRESCRIBED IN SECTION SIX HUNDRED ONE-A
OF THIS PART:
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 subsection (b)
of section 601 of the tax law, as added by section 4 of part B of chap-
ter 59 of the laws of 2025, is amended to read as follows:
(ix) For taxable years beginning after two thousand thirty-two the
following rates AND DOLLAR AMOUNTS shall apply, PROVIDED HOWEVER THAT
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SUCH DOLLAR AMOUNTS SHALL BE ADJUSTED BY THE COST OF LIVING ADJUSTMENT
PRESCRIBED IN SECTION SIX HUNDRED ONE-A OF THIS PART:
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 $107,113 plus 8.82% of excess
over $1,616,450
§ 5. Clause (viii) of subparagraph (B) of paragraph 1 of subsection
(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 AND DOLLAR AMOUNTS
shall apply, PROVIDED HOWEVER THAT SUCH DOLLAR AMOUNTS SHALL BE ADJUSTED
BY THE COST OF LIVING ADJUSTMENT PRESCRIBED IN SECTION SIX HUNDRED ONE-A
OF THIS PART:
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 subsection (c)
of section 601 of the tax law, as added by section 6 of part B of chap-
ter 59 of the laws of 2025, is amended to read as follows:
(ix) For taxable years beginning after two thousand thirty-two the
following rates AND DOLLAR AMOUNTS shall apply, PROVIDED HOWEVER THAT
SUCH DOLLAR AMOUNTS SHALL BE ADJUSTED BY THE COST OF LIVING ADJUSTMENT
PRESCRIBED IN SECTION SIX HUNDRED ONE-A OF THIS PART:
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
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$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 $70,983 plus 8.82% of excess
over $1,077,550
§ 7. Section 601-a of the tax law, as added by section 9 of part A of
chapter 56 of the laws of 2011, subsection (a) as amended by section 10
of part FF of chapter 59 of the laws of 2013, is amended to read as
follows:
§ 601-a. Cost of living adjustment. (a) For tax year two thousand
thirteen, the commissioner, not later than September first, two thousand
twelve, shall multiply the amounts specified in subsection (b) of this
section for tax year two thousand twelve by one plus the cost of living
adjustment described in subsection (c) of this section. For tax year two
thousand fourteen, the commissioner, not later than September first, two
thousand thirteen, shall multiply the amounts specified in subsection
(b) of this section for tax year two thousand thirteen by one plus the
cost of living adjustment. For each succeeding tax year after tax year
two thousand fourteen and before tax year two thousand eighteen, the
commissioner, not later than September first of such tax year, shall
multiply the amounts specified in subsection (b) of this section for
such tax year by one plus the cost of living adjustment described in
subsection (c) of this section for such tax year. FOR TAX YEAR TWO
THOUSAND TWENTY-SEVEN, THE COMMISSIONER, NOT LATER THAN SEPTEMBER FIRST,
TWO THOUSAND TWENTY-SIX, SHALL MULTIPLY THE AMOUNTS SPECIFIED IN
SUBSECTION (B) OF THIS SECTION FOR SUCH TAX YEAR BY ONE PLUS THE COST OF
LIVING ADJUSTMENT DESCRIBED IN SUBSECTION (C) OF THIS SECTION FOR THE
TAX YEAR. FOR EACH TAX YEAR SUCCEEDING TAX YEAR TWO THOUSAND TWENTY-SEV-
EN, THE COMMISSIONER SHALL COMPLETE THE MULTIPLICATION DESCRIBED HEREIN
NO LATER THAN SEPTEMBER FIRST OF THE YEAR PRIOR.
(b) The following amounts shall be indexed by the cost of living
adjustment.
(1) The dollar amounts in the tax tables set forth in paragraph one of
subsection (a), paragraph one of subsection (b) and paragraph one of
subsection (c) of section six hundred one of this part. FOR TAX YEARS
BEGINNING ON OR AFTER TWO THOUSAND TWENTY-SEVEN AND BEFORE TAX YEAR TWO
THOUSAND THIRTY-THREE, THE DOLLAR AMOUNTS IN THE TAX TABLES SET FORTH IN
CLAUSE (VIII) OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (A),
CLAUSE (VIII) OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (B),
AND CLAUSE (VIII) OF PARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (C) OF
SECTION SIX HUNDRED ONE OF THIS PART SHALL BE INDEXED BY THE COST OF
LIVING ADJUSTMENT. FOR TAX YEARS BEGINNING ON OR AFTER TWO THOUSAND
THIRTY-TWO, THE DOLLAR AMOUNTS IN THE TAX TABLES SET FORTH IN CLAUSE
(IX) OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (A), CLAUSE (IX)
OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (B), AND CLAUSE (IX)
OF SUBPARAGRAPH (B) OF PARAGRAPH ONE OF SUBSECTION (C) OF SECTION SIX
HUNDRED ONE OF THIS PART SHALL BE INDEXED BY THE COST OF LIVING ADJUST-
MENT.
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(2) The dollar amount in the numerator of the fractions in subsection
(d) of section six hundred one of this part that is not fifty thousand
dollars. FOR TAX YEARS BEGINNING ON OR AFTER TWO THOUSAND TWENTY-SEVEN
AND BEFORE TAX YEAR TWO THOUSAND THIRTY-THREE, THE DOLLAR AMOUNT IN THE
NUMERATOR OF THE FRACTIONS IN SUBSECTION (D-6) OF SECTION SIX HUNDRED
ONE OF THIS PART THAT IS NOT FIFTY THOUSAND DOLLARS SHALL BE INDEXED BY
THE COST OF LIVING ADJUSTMENT. FOR TAX YEARS BEGINNING ON OR AFTER TWO
THOUSAND THIRTY-THREE, THE DOLLAR AMOUNT IN THE NUMERATOR OF THE FRAC-
TIONS IN SUBSECTION (D-7) OF SECTION SIX HUNDRED ONE OF THIS PART THAT
IS NOT FIFTY THOUSAND DOLLARS SHALL BE INDEXED BY THE COST OF LIVING
ADJUSTMENT.
(3) The New York standard deduction of a resident individual in
section six hundred fourteen of this article.
(c) The cost of living adjustment for a tax year is the percentage if
any, by which the average monthly value of the consumer price index for
the twelve month period ending on June thirtieth of the year immediately
preceding the tax year for which the adjustment is being made (referred
to as the adjustment year) exceeds the average monthly value of the
consumer price index for the twelve month period ending on June thirti-
eth of the year immediately preceding the adjustment year. For purposes
of this section, the consumer price index means the consumer price index
for all urban consumers published by the United States department of
labor.
(d) If the product of the amounts in subsection (b) and subsection (c)
of this section is not a multiple of fifty dollars, such increase shall
be rounded to the next lowest multiple of fifty dollars. PROVIDED,
HOWEVER, THAT FOR TAX YEARS BEGINNING ON OR AFTER TWO THOUSAND TWENTY-
SEVEN, IF THE PRODUCT OF THE AMOUNTS IN SUBSECTIONS (B) AND (C) OF THIS
SECTION IS NOT A MULTIPLE OF FIFTY DOLLARS. SUCH INCREASE SHALL BE
ROUNDED TO THE NEXT HIGHEST MULTIPLE OF FIFTY DOLLARS.
§ 8. Section 614 of the tax law, as amended by chapter 170 of the laws
of 1994, subsection (a) as amended by section 1 of part JJ of chapter 59
of the laws of 2018, subsections (b) and (d) as amended by section 1 of
part C of chapter 62 of the laws of 2006 and subsection (f) as amended
by section 11 of part FF of chapter 59 of the laws of 2013, is amended
to read as follows:
§ 614. New York standard deduction of a resident individual. (a)
Unmarried individual. FOR TAXABLE YEARS BEGINNING ON OR AFTER TWO THOU-
SAND TWENTY-SEVEN, THE NEW YORK STANDARD DEDUCTION OF A RESIDENT INDI-
VIDUAL WHO IS NOT MARRIED NOR THE HEAD OF A HOUSEHOLD NOR A SURVIVING
SPOUSE NOR AN INDIVIDUAL WHO IS CLAIMED AS A DEPENDENT BY ANOTHER NEW
YORK STATE TAXPAYER SHALL BE EIGHT THOUSAND DOLLARS. For taxable years
beginning after nineteen hundred ninety-six, the New York standard
deduction of a resident individual who is not married nor the head of a
household nor a surviving spouse nor an individual who is claimed as a
dependent by another New York state taxpayer shall be seven thousand
five hundred dollars; for taxable years beginning in nineteen hundred
ninety-six, such standard deduction shall be seven thousand four hundred
dollars; for taxable years beginning in nineteen hundred ninety-five,
such standard deduction shall be six thousand six hundred dollars; and
for taxable years beginning after nineteen hundred eighty-nine and
before nineteen hundred ninety-five, such standard deduction shall be
six thousand dollars.
(b) [Husband and wife] SPOUSES filing jointly and surviving spouse.
FOR TAXABLE YEARS BEGINNING ON OR AFTER TWO THOUSAND TWENTY-SEVEN, THE
NEW YORK STANDARD DEDUCTION OF SPOUSES WHOSE NEW YORK TAXABLE INCOME IS
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DETERMINED JOINTLY OR A SURVIVING SPOUSE SHALL BE SIXTEEN THOUSAND FIFTY
DOLLARS. For taxable years beginning after two thousand five, the New
York standard deduction of [a husband and wife] SPOUSES whose New York
taxable income is determined jointly or a surviving spouse shall be
fifteen thousand dollars; for taxable years beginning after two thousand
two and before two thousand six, such standard deduction shall be four-
teen thousand six hundred dollars; for taxable years beginning in two
thousand two, such standard deduction shall be fourteen thousand two
hundred dollars; for taxable years beginning in two thousand one, such
standard deduction shall be thirteen thousand four hundred dollars; for
taxable years beginning after nineteen hundred ninety-six and before two
thousand one, such standard deduction shall be thirteen thousand
dollars; for taxable years beginning in nineteen hundred ninety-six,
such standard deduction shall be twelve thousand three hundred fifty
dollars; for taxable years beginning in nineteen hundred ninety-five,
such standard deduction shall be ten thousand eight hundred dollars; and
for taxable years beginning after nineteen hundred eighty-nine and
before nineteen hundred ninety-five, such standard deduction shall be
nine thousand five hundred dollars.
(c) Head of household. FOR TAXABLE YEARS BEGINNING ON OR AFTER TWO
THOUSAND TWENTY-SEVEN, THE NEW YORK STANDARD DEDUCTION OF AN INDIVIDUAL
WHO IS A HEAD OF HOUSEHOLD SHALL BE ELEVEN THOUSAND TWO HUNDRED DOLLARS.
For taxable years beginning after nineteen hundred ninety-six, the New
York standard deduction of an individual who is a head of household
shall be ten thousand five hundred dollars; for taxable years beginning
in nineteen hundred ninety-six, such standard deduction shall be ten
thousand dollars; for taxable years beginning in nineteen hundred nine-
ty-five, such standard deduction shall be eight thousand one hundred
fifty dollars; and for taxable years beginning after nineteen hundred
eighty-nine and before nineteen hundred ninety-five, such standard
deduction shall be seven thousand dollars.
(d) Married individuals filing separately. FOR TAXABLE YEARS BEGIN-
NING ON OR AFTER TWO THOUSAND TWENTY-SEVEN, THE NEW YORK STANDARD
DEDUCTION OF A MARRIED INDIVIDUAL FILING A SEPARATE RETURN SHALL BE
EIGHT THOUSAND DOLLARS. For taxable years beginning after two thousand
five, the New York standard deduction of a married individual filing a
separate return shall be seven thousand five hundred dollars; for taxa-
ble years beginning after nineteen hundred ninety-six and before two
thousand six, such standard deduction shall be six thousand five hundred
dollars; for taxable years beginning in nineteen hundred ninety-six,
such standard deduction shall be six thousand one hundred seventy-five
dollars; for taxable years beginning in nineteen hundred ninety-five,
such standard deduction shall be five thousand four hundred dollars; and
for taxable years beginning after nineteen hundred eighty-nine and
before nineteen hundred ninety-five, such standard deduction shall be
four thousand seven hundred fifty dollars.
(e) Standard deduction of a dependent individual. FOR TAXABLE YEARS
BEGINNING ON OR AFTER TWO THOUSAND TWENTY-SEVEN, THE NEW YORK STANDARD
DEDUCTION OF A RESIDENT INDIVIDUAL WHOSE FEDERAL EXEMPTION AMOUNT IS
ZERO SHALL BE THREE THOUSAND ONE HUNDRED DOLLARS. For taxable years
beginning after nineteen hundred ninety-six, the New York standard
deduction of a resident individual whose federal exemption amount is
zero shall be three thousand dollars; for taxable years beginning in
nineteen hundred ninety-six, such standard deduction shall be two thou-
sand nine hundred dollars; and for taxable years beginning after nine-
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teen hundred eighty-nine and before nineteen hundred ninety-six, such
standard deduction shall be two thousand eight hundred dollars.
(f) Adjusted standard deduction. For taxable years beginning after two
thousand seventeen, the standard deductions set forth in this section
shall be the amounts set forth in this section adjusted by the cost of
living adjustment prescribed in section six hundred one-a of this [part]
ARTICLE for tax years two thousand thirteen through two thousand seven-
teen. FOR TAXABLE YEARS BEGINNING ON OR AFTER TWO THOUSAND TWENTY-SEV-
EN, THE STANDARD DEDUCTIONS SET FORTH IN THIS SECTION SHALL BE THE
AMOUNTS SET FORTH IN THIS SECTION ADJUSTED BY THE COST OF LIVING ADJUST-
MENT PRESCRIBED IN SECTION SIX HUNDRED ONE-A OF THIS ARTICLE.
§ 9. This act shall take effect on the sixtieth day after it shall
have become a law. Effective immediately, the addition, amendment and/or
repeal of any rule or regulation necessary for the implementation of
this act on its effective date are authorized to be made and completed
on or before such date.