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I moved from NY to FL last year, 2021. When filing my taxes I noticed that my NY refund decreased significantly when I entered the W2 from my new state, FL. I understand that the federal would change due to increased federal income, but why did my NY refund change. Isn't it based on the money I earned while a resident of NY?
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New York uses a progressive system which means it uses your total income to determine which tax rate is applied to your New York income.
For example (illustrative only), if you made only $10,000 in New York you would not owe tax. However, if you made $50,000 in New York and Florida, your tax rate is 10% so you would owe $1000 on your $10,000 NY income.
Thank you!
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