News Summary

New York ranks last in a WalletHub study regarding tax rates, with high state and local taxes burdening residents. Governor Hochul’s proposed tax cuts may offer some relief, but public sentiment about her leadership remains uncertain as residents brace for a taxing future.

New York’s Tax Woes: The Empire State Ranks Dead Last in WalletHub Study

New York City – It’s that time of year again when many residents are digging into their wallets and preparing their tax returns. And for those living in the Empire State, the results are not exactly what anyone would hope for. A recent study has revealed that New York ranks 50th out of 51 states when it comes to tax rates, which means the Big Apple is feeling the pinch harder than most!

Highest Tax Rates All Around

The study from WalletHub dives deep into state and local tax rates across all 50 states and our nation’s capital, Washington, D.C. What makes these findings especially concerning for New Yorkers is that the state has the second-highest total state and local tax rate for a median U.S. household, sitting pretty at 14.74%. Only Illinois, known for its own taxing troubles, ranks higher.

Adding to the list of New York’s financial woes, the state boasts the third-highest real estate tax rate in the U.S. at 6.15%, sandwiched between Vermont and Illinois. And if you’re feeling burdened by income tax, you’re not alone: New York’s income tax rate stands at a staggering 3.80%, the worst in the country.

Policymakers, What Are You Doing?

$250 billion, worries about New York losing its residents and businesses to states with more competitive tax rates are only growing.

This WalletHub study’s findings highlight four areas of taxation: real estate tax, vehicle property tax, income tax, and sales and excise tax. The data was carefully compiled using various authoritative sources and is reflective as of February 3, 2025.

Some Hope on the Horizon?

Even amidst troubling news, there is a glimmer of hope on the horizon. Governor Kathy Hochul doesn’t seem to be sitting idly while the state faces these financial hardships. She has proposed a 5% tax cut aimed at middle-class New Yorkers, which could usher in the lowest income tax rates seen in decades. This tax cut is set to directly affect over 8.3 million taxpayers earning up to $323,200 for joint filers, bringing about an estimated $1 billion in tax relief.

On top of that, Hochul’s affordability agenda also includes expanding the child tax credit and introducing a new birth allowance aimed at helping low-income New Yorkers find financial stability. The focus appears to shift not just on taxes, but also on public safety and reducing crime in the state, creating a multi-faceted approach to improving life for citizens.

A Public Divided on Leadership

Despite these proposed tax breaks and an ambitious agenda, the governor may be facing challenges at home as well. A recent Siena College poll indicates that only 33% of voters are enthusiastic about her re-election. It seems that while there are efforts to entice voters with tax cuts, the public’s response can be as unpredictable as the city traffic itself!

Final Thoughts

So, as Tax Day approaches, New Yorkers are left to contemplate their financial future amid high tax rates and uncertain policy decisions. With ongoing discussions in Albany and proposals aimed at tax relief, it’s a nail-biting time to be living in the Empire State.

Stay informed, stay engaged, and remember—tax season is just a part of life in New York, but how it impacts your wallet is what really matters!

New York’s Tax Woes: A Study Reveals the Empire State’s Challenges