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Stock Tax Question

Francisco2019 — Wed, 16 Dec 2020 16:29:02 GMT

Hi Everyone, I have a question about stock tax. Do I have to pay state taxes on stocks? (I know you’ll have to pay short or long term capital gains for stocks but after paying the capital gain do i also have to pay state tax by the way I live in New York queens)

Re: Stock Tax Question

Opus 17 — Wed, 16 Dec 2020 16:47:48 GMT

New York State taxes all your income at the same rate. Your capital gains will be added to your other income and taxed according to your tax bracket, NY does not have a reduced rate for long term capital gains.

Re: Stock Tax Question

Francisco2019 — Wed, 16 Dec 2020 18:41:09 GMT

Can you give an example:

(If I make $50,000 in a long term Stock Gain Then I’ll pay 15% For Long Term Capital Gain. Is that all I have to pay for taxes or I’ll also need to pay New York State tax? If so How can I find the tax rate for New York State tax?)

thank you

Re: Stock Tax Question

NCperson — Wed, 16 Dec 2020 18:56:59 GMT

you would also have to pay NY state tax

review this link to determine the tax rates in NY state which are dependent on you filing status and income... looks like it could be in the 6% range, give or take.

https://www.tax.ny.gov/pit/file/tax_tables.htm

Re: Stock Tax Question

Opus 17 — Wed, 16 Dec 2020 19:32:14 GMT

@Francisco2019 wrote:

Can you give an example:

(If I make $50,000 in a long term Stock Gain Then I’ll pay 15% For Long Term Capital Gain. Is that all I have to pay for taxes or I’ll also need to pay New York State tax? If so How can I find the tax rate for New York State tax?)

thank you

All your income is added together and taxed at the same rate in New York State.

It's hard to give an example without knowing your regular income. If that stock gain is your only income, then you won't pay any federal capital gains tax because the rate is 0% if your income is less than $50,000. And you would pay 6.09% at New York because NY does not give a break to capital gains, it's all taxed together.

Instead supposing your salary is $300,000. The IRS will tax the first $9500 of your income (after deductions) at 10%, the next $30,000 at 12%, the next $40,000 at 22%, and the rest at 24% (if you are single). The capital gains will be taxed separately at 15%. New York will add all your income together and assess the same income tax rates on $350,000 of income, which will be 6.09% up to $161,000 and 6.49% over that.

Re: Stock Tax Question

Opus 17 — Wed, 16 Dec 2020 19:33:57 GMT

Plus 3.8% New York City tax as well.