2021 Financial Condition Report

For Fiscal Year Ended March 31, 2021


2021 Financial Condition Report
For Fiscal Year Ended March 31, 2021

State Tax Collections Decreased Slightly in SFY 2020-21 from $82.9 Billion to $82.4 Billion

  • In SFY 2020-21, reported New York State tax collections decreased by 0.6 percent, primarily reflecting the adverse economic impact of the COVID-19 pandemic.
    • Collections for consumption and use taxes, New York State’s second largest tax revenue source, were the lowest since SFY 2016-17 and declined 10.6 percent from the previous year.
    • A 24.4 percent growth in personal income tax collections, buoyed by an estimated 6.8 percent increase in securities industry bonuses, tempered the overall decline in tax receipts.

The State Budget Relies Heavily on the Personal Income Tax

  • Personal income tax collections:
    • Made up two-thirds of New York State’s tax collections in SFY 2020-21.
    • Increased by 16.8 percent over the past five years.
  • Only Oregon has a greater reliance on the personal income tax than New York State, 67.6 percent of total tax collections. Nationwide, over three-quarters of the states rely more heavily on sales and user taxes.
  • Effective January 1, 2021, the State’s top personal income tax rate increased to 10.9 percent which will be in effect until December 31, 2027. Changes in the State’s top tax rate can have significant impacts in the overall level of State tax revenue.


Tax Burden Declines

  • The combined federal, State, and local tax burden in New York State was $327 per $1,000 of personal income in fiscal year 2020, a decline from $342 in 2019.
  • At the local level, property tax revenues are the largest single tax source overall. Over 62 percent of all property taxes in New York are collected by school districts.