Most of the US celebrated Tax Freedom Day in April. We’re just turning the corner in NY. This year’s new barrage of new taxes and higher property taxes may push this important annual milestone even further out of reach.
Tax Freedom Day
Tax Freedom Day marks the day when you’ve worked enough days to pay all your taxes for the year. Texans and Floridians get to celebrate this day at the beginning of April each year. That’s still twice as long as back in 1900, when it only took till February to cover your annual taxes.
NY is only tied with DC for taking the longest to pay taxes each year according to the Tax Foundation. That’s statewide, so those in highly Nassau County could work even longer. That is going to be extended further this year due to new property tax assessments and a range of new taxes in the latest state budget. Many will quite easily be working 6 months of the year, just to pay their taxes.
New Taxes
The new budget brings a lot of extra tax pain for New Yorkers. Congestion taxes are one of them, but with over half of workers now able to work from home, you may be able to avoid this one.
Internet sales taxes may be among some of the worst, instantly adding 8% to the cost of products bought online from sites like Amazon. We’ve already taxed an enormous amount of local brick and mortar businesses out of NYC and the state. Now we seem to be pushing back against anyone trying to sell anything or provide any savings.
If you have any money left to get healthcare at all, a new $100M tax on prescription drugs might ensure you can’t afford the medicine you need. Expect prescription drug costs to soar or for some options to become unavailable.
If you do have any money left for groceries after all this, you’ll also have to start paying for your own paper bags at the supermarket.
If you’ve been thinking of selling up and leaving the state for lower taxes, if may be a little late. In addition to transfer fees the new mansion tax in NYC will levy an extra 4.15% tax on home sellers above a certain threshold. On a $25M home, that’s over $1M just for this one tax.
Get in touch with Property Tax Adjusters, Ltd. today to find out how we can help save you on your property taxes.