By Hank Russell
It should come as no surprise to any taxpayer in New York that the state has one of the highest tax rates in the nation. A recent report came out to back up this claim.
According to WalletHub, New Yorkers carry the second-highest tax burden, with median U.S. households paying 14.95% of state and local taxes. Illinois had the highest combined tax rate of 16.87%, while Alaska’s was the lowest with 6.94%.
The amount in state and that U.S. median households pay in New York is $12,143 a year, based on WalletHub data. That is second to Illinois, with those from the Prairie State paying a whopping $13,699 annually. (This is based on the assumption that the Median U.S. household has an annual income of $81,211; owns a home valued at $332,700 [the median U.S. home value]; owns a car valued at $29,100 [the highest-selling car of 2025]; and spends annually an amount equal to the spending of a household earning the median U.S. income.)
| Overall Rank (1=Lowest) |
State | Effective Total State & Local Tax Rates on Median U.S. Household* | Annual State & Local Taxes on Median U.S. Household* | % Difference Between State & U.S. Avg.** | Annual State & Local Taxes on Median State Household*** | Adjusted Overall Rank (based on Cost of Living Index) |
| 1 | Alaska | 6.94% | $5,634 | -37.02% | $6,153 | 8 |
| 2 | Delaware | 7.19% | $5,842 | -34.70% | $6,162 | 2 |
| 3 | Wyoming | 7.58% | $6,156 | -31.18% | $5,816 | 3 |
| 4 | Idaho | 7.65% | $6,215 | -30.52% | $6,462 | 1 |
| 5 | Montana | 7.88% | $6,398 | -28.47% | $6,322 | 4 |
| 6 | South Carolina | 8.65% | $7,028 | -21.44% | $5,987 | 5 |
| 7 | Colorado | 8.75% | $7,110 | -20.52% | $9,007 | 12 |
| 8 | Nevada | 8.76% | $7,113 | -20.49% | $7,446 | 13 |
| 9 | Florida | 8.76% | $7,116 | -20.45% | $6,967 | 6 |
| 10 | District of Columbia | 9.23% | $7,497 | -16.19% | $11,904 | 44 |
| 11 | North Dakota | 9.37% | $7,609 | -14.94% | $6,557 | 18 |
| 12 | New Hampshire | 9.43% | $7,654 | -14.43% | $9,168 | 29 |
| 13 | Utah | 9.83% | $7,985 | -10.73% | $9,898 | 20 |
| 14 | California | 9.83% | $7,987 | -10.72% | $12,031 | 37 |
| 15 | Arizona | 9.91% | $8,052 | -9.99% | $8,282 | 19 |
| 16 | South Dakota | 9.93% | $8,068 | -9.81% | $6,938 | 14 |
| 17 | Missouri | 9.95% | $8,081 | -9.66% | $6,649 | 7 |
| 18 | North Carolina | 9.99% | $8,115 | -9.28% | $7,241 | 10 |
| 19 | Tennessee | 10.06% | $8,172 | -8.64% | $7,044 | 9 |
| 20 | Georgia | 10.32% | $8,381 | -6.31% | $7,904 | 11 |
| 21 | West Virginia | 10.52% | $8,547 | -4.45% | $5,989 | 16 |
| 22 | Oregon | 10.68% | $8,675 | -3.02% | $10,018 | 35 |
| 23 | Alabama | 10.71% | $8,696 | -2.79% | $6,752 | 15 |
| 24 | Maine | 10.82% | $8,784 | -1.80% | $8,086 | 34 |
| 25 | Oklahoma | 10.82% | $8,784 | -1.80% | $6,545 | 17 |
| 26 | Minnesota | 10.92% | $8,872 | -0.82% | $9,356 | 26 |
| 27 | Virginia | 11.06% | $8,983 | 0.42% | $10,184 | 28 |
| 28 | New Mexico | 11.11% | $9,022 | 0.86% | $7,062 | 27 |
| 29 | Rhode Island | 11.21% | $9,100 | 1.73% | $10,402 | 42 |
| 30 | Massachusetts | 11.33% | $9,198 | 2.82% | $13,077 | 46 |
| 31 | Vermont | 11.41% | $9,270 | 3.63% | $9,040 | 41 |
| 32 | Indiana | 11.62% | $9,439 | 5.51% | $7,854 | 25 |
| 33 | Maryland | 11.66% | $9,465 | 5.81% | $12,066 | 45 |
| 34 | Arkansas | 11.69% | $9,491 | 6.10% | $6,868 | 21 |
| 35 | Kentucky | 11.80% | $9,584 | 7.14% | $7,237 | 22 |
| 36 | Washington | 12.02% | $9,766 | 9.17% | $13,148 | 40 |
| 37 | Wisconsin | 12.05% | $9,785 | 9.39% | $8,634 | 31 |
| 38 | Michigan | 12.08% | $9,814 | 9.71% | $8,010 | 24 |
| 39 | Mississippi | 12.33% | $10,016 | 11.97% | $6,859 | 23 |
| 40 | Hawaii | 12.36% | $10,039 | 12.22% | $13,590 | 51 |
| 41 | Louisiana | 12.55% | $10,195 | 13.97% | $7,509 | 33 |
| 42 | Texas | 12.59% | $10,222 | 14.27% | $9,351 | 32 |
| 43 | Ohio | 12.90% | $10,480 | 17.15% | $8,215 | 30 |
| 44 | Iowa | 13.37% | $10,854 | 21.34% | $8,697 | 36 |
| 45 | Nebraska | 13.54% | $10,997 | 22.93% | $9,316 | 38 |
| 46 | Kansas | 14.02% | $11,385 | 27.27% | $9,368 | 39 |
| 47 | New Jersey | 14.06% | $11,416 | 27.61% | $15,219 | 49 |
| 48 | Pennsylvania | 14.09% | $11,445 | 27.95% | $10,190 | 43 |
| 49 | Connecticut | 14.58% | $11,838 | 32.33% | $13,428 | 50 |
| 50 | New York | 14.95% | $12,143 | 35.75% | $14,020 | 47 |
| 51 | Illinois | 16.87% | $13,699 | 53.14% | $12,538 | 48 |
| *Assumes “Median U.S. Household” has an annual income of $81,211 (mean third quintile U.S. income); owns a home valued at $332,700 (median U.S. home value); owns a car valued at $29,100 (the highest-selling car of 2025); and spends annually an amount equal to the spending of a household earning the median U.S. income. | ||||||
| **National Average of State and Local Tax Rates = 11.02% | ||||||
| ***Assumes “Median State Household” has an annual income equal to the mean third quintile income of the state; owns a home at a value equal to the median of the state; owns a car valued at $29,100 (the highest-selling car of 2025); and spends annually an amount equal to the spending of a household earning the median state income. | ||||||
Once again, Alaskans pay the lowest taxes — only $5,634 annually, which is 115% lower than what New Yorkers pay. Further, New York’s state and local taxes are 35.75% higher than the national average of 11.02%.
In New York, the annual amount of local and state taxes paid by the median state household was $14,020, according to WalletHub. That is second to New Jersey, which is $15,219 a year. The lowest amount paid was by the residents of Wyoming ($5,816).
New York was also shown to have one of the highest costs of living, just above Illinois, New Jersey, Connecticut and Hawaii, WalletHub said.
WalletHub showed that New York had the sixth-highest real estate tax rate. The Empire State levies a 6.36% tax, which comes out to $5,167 a year. The state also has the third-highest income tax rate of 3.80% — behind Pennsylvania (4.11%) and Oregon (5.34%). — with residents shelling out $3,086 a year.
Despite the significant tax burdens that New Yorkers face, state legislators are looking to raise taxes on the top 1% and major corporations — increases that will hurt the working class they purport to help.
“Supporters [of tax hikes] also ignore the damage that these tax policies are doing to the state’s economy,” said Bill Hammond of The Empire Center, “and the dangers of making its tax code even more of an outlier than it already is.”