Does New York Have the Highest Tax Rates in the Country?
Living in New York, we all know that it's expensive compared to other parts of the country, but where does New York actually rank in regards to tax rates?
With tax day looming over us like a dark cloud and everyone being faced with that same obligation, there is a significant difference when it comes to state and local taxes. Taxpayers in the most tax-expensive states, for instance, pay three times more than those in the cheapest states.
Recently a study was conducted to determine which states had the highest and lowest tax rates.
To complete the study, the starting point was comparing state and local tax rates in the 50 states and the District of Columbia against national medians. Wallethub compared relative income-tax obligations by applying the effective income-tax rates in each state and locality to the average American’s income.
As you guessed, New York was one of the states with the highest tax rates, however, it doesn't have the highest. New York was ranked as having the 3rd highest tax rate in the country.
Here's the breakdown:
Tax Rates in New York:
- 49th – Overall Effective State & Local Tax Rate
- 45th – Income Tax
- 43rd – Real-Estate Tax
- 1st – Vehicle Property Tax
- 35th – Sales & Excise Taxes