New York has second highest tax burden in nation; here’s the worst — and the best
The Empire State has the second highest tax burden in the country – after Hawaii, according to a new report released by WalletHub ahead of Tax Day on April 15.
New York also taxes its residents more aggressively than any other state when it comes to income tax, well ahead of second-place California, according to the research firm.
In all, the analysis found New York had a 13.6% tax burden – meaning 13.6 cents of every dollar goes to taxes.
“People lose sight of how much of their income is actually going to taxes because it’s taken automatically from our paychecks,” said WalletHub analyst Chip Lupo.
“If they were forced to write a check at the end of the year instead, I think that would raise some red flags and would probably be a call to action for some serious tax reform in this country.”
New York City’s tax burden is even higher than the survey implies, because it adds its own 4.875% sales levy to state’s 4% sales tax at the cash register.
The financial research firm compared tax burdens for all 50 states, looking at income tax, property tax and sales tax.
The state with the lowest tax burden was Alaska, with an overall rate of 4.93%.
The analysis didn’t factor in federal taxes, since it’s the same across all states, so the real overall tax burden is even higher.
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