New York Municipal Bonds Taxation Schedule

New York Municipal Bonds

New York municipal bonds are generally taxable, and this is true of the municipal bonds from other states as well. Both individual and corporate bond holders pay taxes on these investments but there are some exemptions and special considerations to this fact. When you buy municipal bonds you should research the tax implications in your specific situation before making any purchase. The tax rate paid will depend on several factors, including the amount of income claimed for the year in question, as well as the filing status and specific exemptions claimed. Any taxes owed on New York municipal bonds, as well as other income and personal taxes due to this state, are due April 15 of the year after the tax year being calculated.

It is possible to find some tax free municipal bonds if you search, but even these bonds may incur some type of city taxes in many areas of the state. New York municipal bonds can be taxed at a rate that ranges from 4 %t to 8.97 %, depending on your household income. If it is less than eight thousand dollars you will pay 4%, and if it is more than this but less than eleven thousand dollars you will pay 4.5% tax on income from most New York municipal bonds.

High yield municipal bonds can offer a great return in exchange for higher risks, but if your income from these bonds plus other sources puts your yearly income between twenty thousand and two hundred thousand dollars you will pay a 6.85% tax. Incomes between two hundred thousand and five hundred thousand dollars will pay an additional one percent, for a rate of seven point eight five percent. If you have half a million dollars or more for the year, including any income from New York municipal bonds, you will pay the highest rate of 8.97%.