S.4325 Summary

• Increases the basic STAR exemption base figure from $30,000 to $60,000 for tax year 2021-2022 and thereafter, while adjusting the enhanced STAR exemption calculation to multiply the CPI-W percentage increase by two.

• Eliminates prior year tax savings caps for the STAR exemption program, removing restrictions that limited annual increases to 2% or required savings to not exceed prior year amounts starting in 2019-2020.

• Restructures New York State personal income tax rates for taxable years beginning in 2021, reducing tax rates across multiple income brackets for single filers, married filing jointly, and heads of household with a 2% base rate on lower incomes.

• Removes previously enacted income tax rate schedules for taxable years 2021-2024 and replaces them with new brackets that generally provide lower tax rates for higher income earners while maintaining the 8.82% top rate on income over $2 million.

• Takes effect immediately upon enactment.