By Hank Russell
It may come as no surprise to New Yorkers, but middle-class families who live in this state pay the most taxes, according to a recent study.
Based on an income of $117,504 (after taxes), middle-class families pay an average of $24,277 in taxes a year — the highest in the nation, according to a report from Upgraded Points. Hawaii has the second-highest taxes at $23,651, followed by Massachusetts ($23,603), California ($23,403) and Connecticut ($23,047). Tennessee has the lowest taxes at $8,597.
New York has the second highest tax rate at 17.1%, just below Hawaii with a 17.5% tax rate, according to Upgraded Points. To get an idea of how high the tax rate in New York, middle-class families’ income in New York before taxes averaged $114,781 before it went down to $117,504 a year. Connecticut is third with a 17.0% tax rate and Massachusetts and Oregon are tied at 16.7%.
Not surprisingly, New York’s tax bill and tax rate exceed the national average. Nationwide, the average tax bill is $15,522 — which is 56.4% lower than New York’s — and the average tax rate is 13.6%, which is less than that of 16 states.
Data for this study came from the 2025 Economic Policy Institute Family Budget Calculator and the U.S. Census Bureau. The report defined middle-class households as having two adults and two children.
“As national discussions about tax fairness and middle-class economic stability continue, the geographic disparities in tax burdens remain striking,” said the study’s author, Keri Stooksbury. “While federal rates apply uniformly, differences in state income taxes and local living costs mean that middle-class families in some parts of the country face far higher effective tax rates than others.”