New York City residents have always been hit hard by the high personal income tax rates, which can go as high as a combined State and City rate of almost 12.7%. The pain moderated to some degree by the federal itemized deduction for state and local taxes no longer provides any relief since the deductions cap under federal tax reform.
Clients have been looking for a way out. Some are willing to go as far as leaving their formerly beloved NYC for good. When I heard some grumbling about the New York City tax rate dropping, I was excited for taxpayers, but surprised that this was the first I heard of it.