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What you should know about state tax collections

On Behalf of | Mar 9, 2023 | Federal And State Tax Collections |

New York residents have to pay state income taxes of four to 10.9%. These taxes are in addition to federal taxes, and some communities, such as New York City, also charge income taxes.

For those who choose not to pay their taxes, the State of New York can pursue collections. Once the state gets a court judgment, it can collect individuals’ back taxes in several ways.

Wage garnishments

If taxpayers do not arrange payments, the State of New York can sue for wage garnishment or income executions. The government can then take up to 10% of the taxpayer’s gross income from their employment checks.


The State of New York can levy property, preventing these individuals from selling it without paying their taxes first. They can also levy bank accounts and any money that a person, business or government agency owes the taxpayer. For example, if the IRS owes these individuals money for the overpayment of their federal taxes, the state can take this money.


The State of New York can also seize property, such as vehicles, businesses and the contents of taxpayers’ cash registers if they own retail companies. These assets are then auctioned, and the state takes the proceeds of the auction up to the amount owed.


The state government cannot take money from Social Security Income, public assistance, disability, worker’s compensation, unemployment and any child or spousal support. Pensions, whether they are private or public are also exempt.

The State can also suspend driver’s licenses and work with private debt collectors to retrieve back taxes.