Overview
- Governor Kathy Hochul has not made a decision on changing New York’s corporate tax rate, with her office signaling any budget choices will firm up closer to January.
- NYC Mayor-elect Zohran Mamdani is advocating to raise the top corporate rate to 11.5% from 7.25% for firms earning over $5 million, a change that would require state approval.
- An 11.5% top rate would tie New York with New Jersey for the highest state corporate tax rate, according to Tax Foundation figures.
- Long Island Republicans and business leaders, including Nassau County Executive Bruce Blakeman and the Long Island Association, warn the hike would raise consumer costs and drive jobs and companies out of the state.
- Progressive lawmakers and Democratic Socialists are pressing Hochul to back the tax increases to fund universal childcare and free buses, even as the governor previously resisted broad tax hikes and endorsed Mamdani.