One of the questions in many people’s minds is – Will tax rates go up in 2025? Well, there are three answers to that question based on what taxes we are talking about.
- Federal taxes aren’t going up in 2025. The IRS has already announced the tax rates and brackets, and while the brackets have changed from last year, the rates remain the same – from 10% to 37% for the highest earners.
- So far, there is no information on whether or not the tax rates will go up. For now, the highest tax rate in the state is 10.9% for individuals earning $25 million or more.
- The city’s personal income tax rate varies between 3.078% and 3.876% for now. However, the city is considering raising taxes for the top 1% earners of the city – people earning more than $500,000 a year (single).
However, if your question – will tax rates go up in 2025, pertains to property taxes, the answer is a definitive no. The city has announced the tax rates, and they have actually gone down, but only by a tiny margin.
- The property taxes for class-2 properties that most condos and co-ops fall in was 12.502% for the year 2023/2024 and it’s 12.500% for the year 2024/2025.
- The property taxes for class-1 properties, in which most free-standing homes and smaller condo buildings fall, remain steady at 20.085%.
You may need to reach out to a New York City broker to fully understand how property taxes impact and influence your real estate purchases.
Read More: How Are Property Taxes Calculated in NYC
