The state of New York has made the following tax law changes for tax year 2025:
Inflation Refund Checks
The state will be issuing its first-ever inflation refund checks. The checks are being issued with the purpose of providing relief to New Yorkers who have paid increased sales tax due to inflation. The amounts of the checks will be calculated based on income and filing status for tax year 2023. If eligible, taxpayers do not need to do anything. The state will begin issuing the checks in September 2025.
Empire State Child Credit
For 2025, the credit offers up to $1000 for each child ages 3 or younger. For children aged 4 through 16, the credit varies between $330 and $500.
Amended Return Review During Appeals
For tax years starting January 1, 2024, the Department of Taxation and Finance may address amended returns for the same year that a taxpayer has filed an appeal related to a deficiency or refund denial.
Servicemembers Civil Relief Act Filing Options
Married servicemembers and their spouses can elect to file state taxes using the servicemember’s or spouse’s residence, or the servicemember’s duty station, regardless of the marriage date. This started in 2023 and continues for 2025.
Itemized Deduction Limitation Extended
The limitation on itemized deductions for taxpayers with incomes over $10 million is extended through 2029.
Tax Shelter Reporting Extended
Reporting requirements for tax shelter disclosures and related penalties are extended through July 1, 2029.
Metropolitan commuter transportation mobility tax (MCTMT) rates for self-employed individuals:
The Metropolitan Commuter Transportation District (MCTD) is divided into two zones for purposes of calculating the MCTMT for self-employed individuals.
- Zone 1 includes the counties of New York (Manhattan), Bronx, Kings (Brooklyn), Queens, and Richmond (Staten Island).
- Zone 2 includes the counties of Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester.
For tax years beginning on or after January 1, 2024, the MCTMT rates for self-employed individuals engaging in business within the MCTD are:
- .60 % (.0060) of the net earnings from self-employment that are attributable to the MCTD within Zone 1, if such earnings exceed $50,000 for the tax year, and
- .34% (.0034) of the net earnings from self-employment that are attributable to the MCTD within Zone 2, if such earnings exceed $50,000 for the tax year.
Note: The $50,000 thresholds are computed on an individual basis for each zone, even if you file a joint income tax return.