News Summary

New York is dealing with some of the highest tax rates in the nation, ranking 50th out of 51 states. A WalletHub report highlights a total tax rate of 14.74% for the median household, burdening families with high real estate and income tax rates. This has sparked discussions about potential tax relief in Albany, but solutions are still elusive.

New York’s Tax Rates: Steep and Staggering

Hey there, Gotham! If you think your wallet feels a little lighter these days, you might not be imagining things. A new study has sent ripples through the Empire State, revealing that New York is rocking some of the highest tax rates in the nation. Yes, you heard that right. According to a WalletHub report, our beloved New York comes in at a dismal 50th out of 51 states when it comes to tax rates, putting us in the unenviable position of having the second-highest total state and local tax rate at a staggering 14.74% for the median U.S. household. Yikes!

The Breakdown: State and Local Taxes

So, what does this mean in plain English? Well, for the average family, living in New York can feel almost like being stuck in a tax merry-go-round that just won’t stop. With a real estate tax rate of 6.15%, New York holds the title for the third-highest real estate taxes in the country. Only Vermont and Illinois have a higher bill in this department, making it challenging for homeowners trying to settle down in the community.

And let’s not forget about income tax. New York boasts the dubious honor of having the worst income tax rate at 3.80%. Yowza! With state taxes ranging from 4% to 10.9% depending on what you earn, understanding your tax bracket is vital to managing your finances.

The Tax Burden Explained

A WalletHub analyst laid out the grim reality—taxpayers in less costly states pay less than half of what we New Yorkers are shelling out. That’s a tough pill to swallow for many residents who are already stretching their budgets. As if that weren’t enough, New Yorkers living in the glitzy areas of New York City or Yonkers are usually faced with additional local income taxes, which can leave many scratching their heads.

What’s Happening in Albany?

As if the high taxes weren’t enough, discussions about tax relief remain more of a talking point than a reality in Albany. Upstate United’s executive director pointed out that talks around tax relief seem to linger in policy discussions without any real solutions yet in sight. Meanwhile, the state is deeply involved in negotiations for a potential $250 billion spending plan. That’s a whole lot of zeros!

When is Tax Day?

If you’re scratching your head wondering when you need to take action, mark your calendars—New Yorkers need to have their state tax returns filed by April 15, 2025. But don’t worry; there are options for those feeling the pinch. Taxpayers in New York can file their state taxes for free thanks to the IRS Direct File program. Every bit helps, right?

Who’s Paying More?

For those making over $107,650 in adjusted gross income (AGI), there’s also a supplemental tax to consider. Ouch! Tax brackets, as they stand, reach up to a whopping 10.9% for incomes exceeding $25 million. That’s quite the jump, isn’t it? Even city tax rates for those in the Big Apple vary, with taxes peaking at 3.876% for incomes over $50,000.

Prospective Changes on the Horizon

In an attempt to ease the tax burden, the governor has proposed a tax cut of up to 5%, hoping to provide relief for over 8.3 million taxpayers earning up to $323,200 for joint filers. And there’s more—a new birth allowance for low-income families is on the table, perhaps easing the pressures of parenting amidst rising living costs. Additionally, there are plans to assist law enforcement agencies with staffing shortages.

Final Thoughts

As New Yorkers continue to grapple with high taxes that seem to be an unavoidable reality, it’s clear that every dollar matters. While many are hoping Albany can turn discussions into actual policies, for now, residents are left hoping for relief and searching for ways to make their hard-earned money stretch a little further.

New York’s Tax Rates: Steep and Staggering

News Summary