Special Report

How Much New York Taxes Its Residents Compared to Other States

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As the sayings go, taxes are one of the few certainties in life, and the annual ritual of filling them with the IRS is not one that many people look forward to. The average American paid $10,845 in federal income taxes alone in 2020. But, while everyone is subject to the same federal tax laws, states also have the authority to set their own tax policy, and exactly how much you end up paying depends largely on where you live.

To raise revenue, state governments levy a broad range of taxes. These typically include taxes on property, income, and sales, and they vary considerably by state. In fact, in some parts of the country, residents are exempt from paying one or more of these tax categories altogether.

According to the Tax Foundation, an independent, nonprofit, tax policy research organization, state tax collections in 2021 totaled $4,714 per capita in New York, the ninth highest among states.

The overall tax burden in New York, which is a measure of taxes paid as a share of annual income, was 6.1% of the state’s income per capita of $76,837. For comparison, the per capita state income tax burden nationwide stands at 6.0%.

All data in this story is from the Tax Foundation report Facts & Figures 2023: How Does Your State Compare from the Tax Foundation, an independent, nonprofit, tax policy research organization. Figures do not include taxes levied at the local or federal level.

 

Rank State State tax collections per capita in fiscal 2021 ($) Avg. annual earnings in 2022 ($) State tax burden (%)
1 Vermont 6,356 61,882 10.3
2 California 6,325 76,614 8.3
3 Connecticut 6,120 83,294 7.3
4 Hawaii 5,582 60,947 9.2
5 Minnesota 5,571 66,280 8.4
6 Delaware 5,378 59,931 9.0
7 Massachusetts 5,202 83,653 6.2
8 North Dakota 5,044 64,524 7.8
9 New York 4,714 76,837 6.1
10 New Jersey 4,714 77,016 6.1
11 Illinois 4,382 67,244 6.5
12 Washington 4,214 73,775 5.7
13 Oregon 4,192 61,596 6.8
14 Maryland 4,091 69,817 5.9
15 Maine 3,973 58,484 6.8
16 Rhode Island 3,965 64,376 6.2
17 Kansas 3,958 58,924 6.7
18 Indiana 3,915 56,497 6.9
19 Arkansas 3,875 50,625 7.7
20 Pennsylvania 3,824 64,279 5.9
21 Utah 3,784 56,019 6.8
22 Wisconsin 3,782 59,626 6.3
23 Virginia 3,741 66,305 5.6
24 Iowa 3,701 57,163 6.5
25 Nebraska 3,545 61,205 5.8
26 New Mexico 3,531 50,311 7.0
27 Montana 3,514 56,949 6.2
28 Michigan 3,426 56,494 6.1
29 Idaho 3,405 52,369 6.5
30 West Virginia 3,391 48,488 7.0
31 Nevada 3,313 60,213 5.5
32 North Carolina 3,290 56,173 5.9
33 Kentucky 3,242 51,266 6.3
34 Wyoming 3,239 69,666 4.6
35 Colorado 3,238 70,706 4.6
36 Mississippi 3,171 45,881 6.9
37 Ohio 2,963 56,879 5.2
38 Tennessee 2,864 56,560 5.1
39 Arizona 2,861 55,487 5.2
40 Oklahoma 2,834 53,870 5.3
41 Alabama 2,828 49,769 5.7
42 Louisiana 2,651 54,217 4.9
43 Georgia 2,579 55,786 4.6
44 South Carolina 2,560 52,467 4.9
45 Missouri 2,447 55,325 4.4
46 South Dakota 2,401 64,462 3.7
47 New Hampshire 2,313 73,200 3.2
48 Florida 2,264 62,270 3.6
49 Texas 2,214 59,865 3.7
50 Alaska 1,438 65,813 2.2

 

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