For FY 2024, New York City’s revenue consists of three main sources: tax revenue, state contributions, and federal contributions. Let me break it down for you:
1. Total Revenue for FY 2024:
- Total City Revenue: Approximately $101.1 billion (from all sources combined).
2. Revenue Breakdown:
Tax Revenue (Major Category) – $74.2 billion
This is the largest portion of New York City's total revenue. Here’s how it breaks down:
|
Tax Category |
Amount (Billions) |
% of Total Revenue |
|
Property Tax |
$32.99 billion |
32.6% |
|
Personal Income Tax |
$15.67 billion |
15.5% |
|
Sales Tax |
$9.91 billion |
9.8% |
|
Business Taxes (e.g., BCT, UBT) |
$5.2 billion |
5.1% |
|
Other Taxes (including real estate transfer, utility tax, etc.) |
$10.4 billion |
10.3% |
State Contributions – $18.3 billion
New York State provides various funds to the city, including:
- Aid to Education: Major funding for the public school system.
- Health and Social Services: Contributions toward Medicaid, housing assistance, etc.
- Other Aid: General operating support and designated grants for infrastructure and programs.
Federal Contributions – $8.6 billion
The federal government contributes in the form of:
- Grants: For specific projects such as infrastructure, transportation, and disaster relief (e.g., Hurricane Sandy recovery).
- Health and Social Services: Support for programs like Medicaid and social safety nets (e.g., TANF, food assistance).
3. Breakdown of Major Tax Categories:
1. Property Tax (Largest Source of Revenue)
- Amount: $32.99 billion
- Description: New York City's property tax system is primarily based on the value of real estate. It’s a significant revenue source because NYC is home to a large number of high-value properties.
- Subcategories:
- Residential (including co-ops and condos)
- Commercial
- Industrial & Other Property
- Special Assessments & Charges (e.g., for city infrastructure improvements)
-
2. Personal Income Tax
- Amount: $15.67 billion
- Description: This tax is levied on the income of individuals who live or work in New York City. The rate is progressive, with higher earners paying a higher percentage.
- Subcategories:
- Resident Income Tax (for those living in the city)
- Nonresident Earnings (tax on earnings of people who work in NYC but live elsewhere)
- Commuter Tax (tax on income from those commuting into the city, previously eliminated but still a point of policy discussion)
-
3. Sales Tax
- Amount: $9.91 billion
- Description: NYC charges a 4.5% local sales tax on retail transactions, added to the state’s sales tax. This includes both goods and certain services.
- Subcategories:
- Retail Sales of Goods (e.g., clothing, electronics)
- Services (e.g., transportation, entertainment, dining)
- Real Property Transactions (taxes on sales of real estate or transfers)
-
4. Business Taxes
- Amount: $5.2 billion (combined from the BCT and UBT)
- Business Corporation Tax: $4 billion (on corporations doing business in NYC)
- Unincorporated Business Tax: $1.2 billion (on LLCs, partnerships, sole proprietorships)
-
5. Other Taxes
- Amount: $10.4 billion
- Real Estate Transfer Tax: Taxes on the sale of property (commercial or residential).
- Hotel Occupancy Tax: Collected from hotels and short-term rentals.
- Utility Taxes: Levied on utility companies providing electricity, gas, and telecommunications services.
- Excise Taxes: For specific goods like tobacco and alcohol
- Summary of Major Revenue Sources in FY 2024:
- Taxes: $74.2 billion (Property, Sales, Income, Business, and Other taxes)
- State Contributions: $18.3 billion
- Federal Contributions: $8.6 billion
