New York proposes a tax on businesses using technology to displace workers, based on state and local taxes on displaced employees' wages.

New York's "robot tax act" imposes a tax surcharge on businesses using technology to displace workers. This tax applies to corporations deriving receipts from activity in the state, with thresholds based on customer and location counts. The surcharge is calculated using state and local taxes or fees on displaced employees' wages, including state income tax, unemployment insurance, and local occupational taxes. The act defines technology broadly, including machinery, artificial intelligence algorithms, and computer applications. The tax takes effect starting January 1, 2026.

New York proposes a tax on businesses using technology to displace workers, based on state and local taxes on displaced employees' wages.

New York's "robot tax act" imposes a tax surcharge on businesses using technology to displace workers. This tax applies to corporations deriving receipts from activity in the state, with thresholds based on customer and location counts. The surcharge is calculated using state and local taxes or fees on displaced employees' wages, including state income tax, unemployment insurance, and local occupational taxes. The act defines technology broadly, including machinery, artificial intelligence algorithms, and computer applications. The tax takes effect starting January 1, 2026.