Adjusted Gross Income Grows by $6.6B in Capital Region, $1.8B in Downtown Saratoga
Between 2020 and 2021, the adjusted gross income (AGI) income of Capital Region taxpayers increased by $6.6 billion – with nearly a third of that gain being concentrated in the Saratoga Springs 12866 ZIP code. While higher wages and salaries and capital gains drove up the region’s AGI, the number of tax returns filed and individuals covered under them declined, according to a Center for Economic Growth (CEG) analysis of new IRS individual income tax data.
Regional Performance
In 2021, 554,250 income tax returns covering 952,640 individuals were filed in the eight-county Capital Region. Compared to the previous year, that marked a 2.6 percent decline in returns and a 2.3 percent decline in covered individuals. Despite these declines, the AGI reported in the 2021 returns was $52.7 billion, up $6.6 billion (14.2 percent) from 2020. AGI is total income minus deduction and adjustments.
Among New York’s 10 economic development regions, the Capital Region had the second slowest annual decline rate for returns filed, trailing the Long Island Region (-1.8 percent). The Capital Region also had the state’s fourth fastest-growing AGI, trailing Long Island (19.6 percent), the Hudson Valley (22.2 percent) and New York City (28.2 percent).
The biggest factor behind the Capital Region’s 2021 increase in AGI was capital gains, which were up by $3.7 billion (88.6 percent), compared to the previous year. During the same period, salaries and wages increased by $1.4 billion (4.6 percent). While the amount of state and local income taxes paid by Capital Region taxpayers increased by $364.6 million (43.5 percent) over the year, there were declines in real estate taxes (-1.9 percent), property taxes (-2.1 percent) and limited state and local taxes (-3 percent).
County Performance
Among New York’s 62 counties, Saratoga County had the state’s third fastest-growing AGI, which increased by $2.8 billion (23.3 percent). It trailed only Westchester (28.4 percent) and New York (44.9 percent) counties. Columbia County ranked fifth for annual total income growth, which increased by $2.4 billion (21.2 percent).
Saratoga County’s AGI growth was concentrated in the 12866 ZIP code that covers downtown Saratoga Springs. Between 2020 and 2021, that ZIP code’s AGI increased by $1.8 billion (52 percent) to $5.5 billion. Other Capital Region ZIP codes that made sizeable AGI gains between 2020 and 2021 were Niskayuna (12309: +$233.7 million), Cohoes (12047, +$186.6 million), and Queensbury (12804, +$165.7 million).
CEG INITIATIVES
In April 2021, CEG launched a talent attraction campaign using the CapNY brand, along with a website – GoCapNY.com – and its associated social media channels. To help attract even more young professionals to the Capital Region, CEG launched a CapNY Connectors initiative. The Connectors are local residents who love living in the Capital Region and who have volunteered to share that love to help connect prospective new residents to our community. They work in diverse industries, pursue unique interests, and come from all walks of life. The CapNY Connectors are available to answer questions and discuss first-hand experience of what it’s like to work and live in CapNY.
Young professionals can find a connector who shares their interests and ambitions by checking out the profiles on the GoCapNY website. Website visitors who are unsure of whom they should connect with, can fill out the form to provide some additional details, and the CapNY networking team will make a connection for them.
Visit CapNY Connectors at https://gocapny.com/capny-connectors.
Don’t miss these insights into the trends that are shaping the Capital Region’s economy.
Sign up for CEG’s e-news and follow us on:
