More Accounting Tomorrow Posts

New Yorkers pay highest state-local tax in US, report finds

Print
Email
Reprints
January 21, 2016

12.7 percent of all income in New York went towards state and local taxes in 2012, according to the annual State-Local Tax Burden Rankings released on Wednesday by the nonpartisan Tax Foundation.

The report highlights the state-local tax burden in each of the country's 50 states, detailing how much residents pay to their state and other states, and illustrates tax burden trends over time and within each state.

New York’s state-local tax burden is painted thusly:

  • State-Local Tax Burden rank: 1st
  • Percent of income in New York that goes to state and local taxes: 12.70%
  • Amount of taxes paid to New York per capita: $5,588
  • Amount of taxes paid to other states per capita: $1,406

“There’s an ongoing debate over how much is enough when it comes to taxes, but it isn’t always informed by accurate data,” said Tax Foundation economist Nicole Kaeding, in a statement “Our study gives taxpayers a comprehensive look at where tax burdens are felt across the states, so that they can have an informed discussion on the size and reach of state and local taxes.”

Other key findings include:

  • During the 2012 fiscal year, state-local tax burdens as a share of state incomes decreased on average across the U.S. Average income increased at a faster rate than tax collections, driving down state-local tax burdens on average.
  • New Yorkers faced the highest burden, with 12.7% of income in the state going to state and local taxes. Connecticut (12.6%) and New Jersey (12.2%) followed closely behind. On the other end of the spectrum, Alaska (6.5%), South Dakota (7.1%) and Wyoming (7.1%) had the lowest burdens.
  • On average, taxpayers pay the most taxes to their own state and local governments. In 2012, 78 percent of taxes collected were paid within the state of residence, up from 73 percent in 2011.
  • State-local tax burdens are very close to one another and slight changes in taxes or income can translate to seemingly dramatic shifts in rank.

For the full report, head to Tax Foundation's site here.

Comments (1)
So I guess we know why there are no rich people in New York and why no rich people are moving here.
Posted by Scottilla | Friday, January 22 2016 at 8:53AM ET
Add Your Comments:
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.

Graphic_Millennials.jpeg