New york city cap

You're referring to the New York City cap!

The New York City cap, also known as the NYC cap, is a slang term used to describe the maximum amount of money that can be earned in a year before state and local taxes are applied. In New York City, the cap is set at $250,000 for single filers and $500,000 for joint filers.

Here's a breakdown of the NYC cap:

• Single filers: $250,000
• Joint filers: $500,000
• Heads of household: $250,000

The NYC cap is used to calculate the amount of taxes owed on income earned in the city. Any income above the cap is subject to a higher tax rate, which can range from 8.33% to 12.7% depending on the taxpayer's income level.

It's worth noting that the NYC cap only applies to income earned within the city limits, and does not affect income earned outside of the city. Additionally, the cap does not apply to self-employment income, which is subject to a different tax rate.

Overall, the NYC cap is an important consideration for individuals and businesses earning income in the city, as it can impact their tax liability and financial planning.