By Hank Russell
In what should come as no surprise to New Yorkers, the state has one of the highest tax burdens in the country, according to a new study.
According to WalletHub, New York has the second-highest tax burden, next to Hawaii. New York’s tax burden is 12.29%, while Hawaii’s is 13.30%. Alaska has the lowest tax burden at 4.92%, which is nearly one-third of New York’s.
WalletHub also found that New York is in the top five when it comes to having the property tax burden. The state has the fourth-highest property tax burden at 4.22% behind Vermont (4.89%), New Jersey (4.38%) and New Hampshire (4.33%). Alabama had the lowest property tax burden at 1.40%.
When asked why property taxes on Long Island are so high, Patrick O’Connor, president of the national tax consulting firm O’Connor, said the region’s proximity to New York City plays a role. Additionally, he attributed the high property tax burden to “strong zoning laws, which often restrict areas to single-family housing. This puts up a barrier for apartments and more affordable housing. While this does keep neighborhoods together, the rising costs lead to traditional families being unable to afford their homes.”
Income taxes have become an election issue in New York as New York City Mayor Zohran Mamdani and some members of the state legislature are seeking to raise personal income taxes on those earning six figures a year; however, Mamdani seems to be backing away from keeping that pledge.
Next to Oregon, whose rate is at 4.76%, New York has the second-highest personal income tax burden at 4.65%, based on WalletHub data. Seven states — Texas, Wyoming, Alaska, Florida, South Dakota, Nevada and Tennessee — do not have personal income taxes.
But when it comes to total sales and excise taxes, New York is in the middle of the pack. WalletHub showed that the state is 23rd with a rate of 3.53%. The highest burden belongs to Hawaii (7.48%), while the lowest goes to New Hampshire (0.91%).
In addition, New York was found to have the fourth-highest property tax as a percentage of personal income, and the second-highest individual income tax as a percentage of personal income, according to WalletHub.
“It’s easy to be dismayed at tax time when you see just how much of your income you lose,” said WalletHub analyst Chip Lupo. “Living in a state with a low tax burden can alleviate some of that stress. Some states charge no income tax or no sales tax, although all states have some form of property taxes and excise taxes.”