Blog · 16 October 2026

Ulster County Income Tax Surcharge Proposal: Enabling Law, 18.75% Above $250k/$500k and What US CPA Firms Should Track

By Keshav Bansal, CA

The proposed Ulster County income tax surcharge—the Ulster County for Fair Taxes Act—would let one Hudson Valley county add a local layer on top of New York State personal income tax for high earners. It is not law. Ulster County’s official Fair Taxes Act page (updated July 15, 2026 for the amended proposal) describes enabling bills in Albany, a county Home Rule Request, and a later Local Law process. For US CPA firms with New York or multi-state clients, the file lesson is broader than one county: most U.S. counties cannot levy an income tax without state enabling legislation, while property tax (assessed value × millage) remains the default local levy.

Bloomberg Tax (Danielle Muoio Dunn and Raga Justin, October 13, 2026) flagged the Ulster push as another local-revenue story amid property-tax pressure. This article sticks to figures the county itself publishes for the amended proposal and frames every step as pending Albany and Kingston action—not as an enacted surcharge.

What the amended Ulster County income tax proposal would do

Per Ulster County’s Fair Taxes Act page, the surcharge would apply only to New York State income tax paid on taxable income above $250,000 for single filers and $500,000 for joint filers—not to total income and not to the entire state tax bill. Above those thresholds, the surcharge rate would be 18.75% of the state tax attributable to that slice. The county says roughly 1% of households countywide would pay, and that even for those households the surcharge would typically represent less than one percent of total income.

The county’s own illustrative examples (not firm projections): joint filers with $600,000 of taxable income might pay about $1,200–$1,300 of surcharge; single filers with $300,000 of taxable income might pay about $600–$700. Tax situations vary, so treat those ranges as county examples only.

• Thresholds (taxable income): $250,000 single / $500,000 joint
• Rate: 18.75% of NYS tax on income above the threshold
• Scope: ~1% of Ulster households, per the county page
• Bills: A11460A / S10532A (Sen. Michelle Hinchey / Assemb. Sarahana Shrestha)

Process: enabling bill, Home Rule, then a Local Law (2027 at earliest)

Ulster’s page lists four steps. (1) State enabling legislation must be introduced—Hinchey and Shrestha introduced A11460A / S10532A to support a Home Rule Request. (2) The County Legislature must pass a Home Rule Request; the July 15, 2026 Update says the Legislature approved an amended Home Rule Request at its July 14 session. (3) The State Legislature and Governor must pass and sign the bill. The 2026 state legislative session ended June 4, so the earliest state passage is the 2027 legislative session. (4) After state authorization, the County Legislature must draft and pass a Local Law, with one or more public hearings—also 2027 at the earliest.

Do not invent an effective tax year or withholding start date. Until Albany enables the tax and Ulster adopts a Local Law, there is no Ulster county income-tax surcharge to withhold or remit.

Local income tax vs property tax: why CPAs care

Property tax is the workhorse of U.S. county finance: assessed value times millage (or equivalent rate). When home values rise faster than wages, longtime residents see bills climb even when cash income does not. Local income taxes are the exception, not the rule. New York City imposes its own resident income tax; Yonkers already imposes a resident income-tax surcharge on New York State tax (commonly described as 16.75% of net state tax under Article 30-A / Yonkers local law). Some Ohio cities and Pennsylvania earned-income taxes are other familiar patterns. Ulster’s proposal is closer to the Yonkers model—a surcharge on state tax—than to a stand-alone county rate schedule, but it would still need state enabling law that most counties never receive.

That contrast matters for client conversations that also touch state millionaire-tax debates, entity-level SALT workarounds and homestead/property-tax ballot measures. See our notes on state millionaire-tax trends in Rhode Island and Washington, the PTET / SALT cap OBBBA guide, and Florida Amendment 3 homestead / property-tax proposal—each a different lever on the same “who pays for local services” question.

What US CPA firms should check for NY / multi-state clients

• Status board: Track A11460A / S10532A and any 2027 session action; confirm Ulster Local Law only after state enabling law exists.
• Residency and domicile: County surcharge exposure (if enacted) will turn on Ulster residency rules tied to the state personal income tax system—flag second homes, part-year moves and pied-à-terre fact patterns early.
• Modeling: If you stress-test high earners, apply the county’s own structure: 18.75% of state tax on the slice above $250k / $500k taxable income—not 18.75% of gross or of total state tax.
• Compare Yonkers: Clients already filing Yonkers Form IT-201 city lines know surcharge mechanics; Ulster would be a separate jurisdiction if and when authorized.
• Property-tax narrative: The county’s stated purpose is to reduce reliance on property and sales taxes. Keep property-tax appeals, STAR/homestead and assessment challenges on a separate workpaper from any future income-tax surcharge.
• Estates and trusts: The county FAQ notes the state bill mentions estates and trusts to align with NYS income tax; inheritance itself is not NYS taxable income for this surcharge discussion. Do not conflate with estate tax.

Bottom line for partners: brief NY clients that Ulster is proposing a high-income county income tax surcharge that still needs Albany and a Local Law—earliest meaningful state action in the 2027 session. Until then, organizers should not assume Ulster withholding or estimated-tax lines.

Where Tax Brew fits

Multi-state and New York local income-tax tracking multiplies organizer fields, residency memos and estimated-tax calendars. Tax Brew provides bookkeeping, cleanup and tax prep support for US CPA firms, so source documents and workpapers arrive organized; your team keeps the advice and sign-off. See our services, or email info@taxbrewglobal.com.

Sources: Ulster County — Ulster County for Fair Taxes Act (Update July 15, 2026; amended thresholds, 18.75% surcharge mechanics, process steps, examples); Bloomberg Tax (Danielle Muoio Dunn & Raga Justin, Oct. 13, 2026) for news framing; NYS Tax Department materials on the Yonkers resident income-tax surcharge (commonly 16.75% of net state tax) for comparison only. General information, not tax or legal advice. Confirm against the bills, any enacted statute and current NYS / Ulster forms before advising clients.