New York State Has Terrible Tax Rates, But Just How Bad Are They in 2023?
We're fully into Tax Season 2023 in the United States, and once again, New Yorkers are dealing with a tax burden that's among the worst in the country. The latest numbers are in, and we now have a better idea of just how high the Empire State's tax rates are this year, and how our state's burden compares to other states in America.
Report: New York Ranked Among States with Worst Tax Rates...Again
A report from WalletHub broke down the best and worst states for taxpayers to call home in 2023, and the report shed a not-to-flattering light on New York for this upcoming tax season. To complete this study, the folks at WalletHub compared state and local tax rates in the 50 states and the District of Columbia against national medians, and ranked every state by their percentage either above, or below, the national median.
When all of the percentages were calculated, it was determined that New York's tax rate is 32.22% above the national average, ranking the state third-worst in the nation in that category.
Based on the average household income in the Empire State, New Yorkers are paying $12,047 in taxes in 2023, the third-highest quantity in the nation.
Only the residents of New Jersey and Connecticut are shelling out more for state and local income taxes, while Illinois and Connecticut residents are the only people dealing with higher tax rate percentages than New York.
Here are the states that represent the rest of the inauspicious top-ten list:
- Illinois (39.83%)
- Connecticut (37.47%)
- New York (32.22%)
- Pennsylvania (29.30%)
- Kansas (26.06%)
- Iowa (23.60%)
- Ohio (22.66%)
- Nebraska (22.17%)
- New Jersey (20.58%)
- Wisconsin (20.32%)
I wish I came bearing better news for the 2023 tax season, but unfortunately, the reality of the data presented is far more grim. Good luck to all New Yorkers, as we embark on another painful push for April 15th.