Hodgson Russ SALT Dispatch

New York City has turned to its unincorporated business tax regime to raise revenue, this time by cutting the personal income tax credit that offsets UBT liability for the City's highest earners. Int. No. 972-2026 – an amendment to the City’s Administrative Code – became law on August 18 without Mayor Zohran Mamdani's signature, and its cuts to the credit are retroactive to January 1, 2026. Here's what changed, why it matters, and why it's just the latest entry on a growing list of reasons prompting high-net-worth New Yorkers to consider leaving the City altogether.