What is New York State Income Tax Rate For Capital Gains?

Question

I did my own taxes for the first time this year. Using tax software, I plugged in what my refund would be if I had no stock sales in 2006. BTW, my tax bracket is 15% and I'm in New York.

Without Capital Gains:

Federal Refund : $400 and State Refund : $1460


Capital Gains of only $4416.

Federal : $260 (I owe) and State Refund : $1037

According to an online Capital Gains calculator I used, my Federal tax should be $662 (which explains why my refund went from $400 to minus $260). What I can't understand is why my State refund dropped so drastically.

Answer 1

Unlike the federal government, most states, New York included, do not tax capital gains differently than regular income. Your tax went up by $423 because your income went up by $4416. Like the previous answerer said, this seems right (without knowing anything else on your return).

Answer 2

That appears to be right if you are a New York City or Yonkers resident.