Cuomo, state Democrats near deal to raise taxes on residents earning over $1 million

New York City's wealthiest could be paying the top income taxes rates in the country should Cuomo sign tax increase into law.
New York Stock Exchange
The New York Stock Exchange building in New York City
(Tayfun Coskun/Anadolu Agency via Getty Images)

New York Gov. Andrew Cuomo and state legislators are close to reaching a budget agreement that would raise taxes on residents earning over $1 million.

If approved by the Democratic governor and Democrat-controlled legislature, New York would become the state with the highest personal income tax rate in the country.

The budget measure also includes increasing the state's corporate tax rates and possibly legalizing mobile sports betting.

"We have a conceptual agreement on all issues, Cuomo said Monday, according to The New York Times. "We’re dotting some i's, we're crossing some t’s."

The proposed changes would increase tax rate from 8.82% to 9.65% for individuals making over $1 million or those joint-filing making more than $2 million.

Two new additional tax brackets would also be created –10.3% for those making $5 million to $25 million, and 10.9% for those making over $25 million.

New York City high-income earners could be paying the highest in the country in personal income taxes. By adding New York City's additional top-earner tax rate, those making over $1 million could pay as high as a 14.8 percent tax rate, surpassing California's 13.3 percent tax rate, the highest in the country.

Cuomo has previously staved off raising tax rates for top-earners for fear of driving off New York's wealth and businesses.