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New York has highest tax burden in U.S., report finds

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  • Staff Report 

With the deadline for taxes looming on April 15, a striking 72% of Americans have voiced their belief that their current tax rates are excessively burdensome. This sentiment comes in the wake of a revealing study published by the personal-finance website WalletHub, which released its 2024 Tax Burden by State report. The analysis undertook a comprehensive comparison across the 50 states, evaluating the weight of property, individual income, and sales and excise taxes against total personal income to identify the states that impose the highest fiscal demands on their residents.

Finger Lakes Partners (Billboard)

New York has emerged as the state with the most substantial overall tax burden, marking a significant impact on its residents’ finances. With an overall tax load of 12.02%, the state leads the rankings, further detailed by its position as 5th in property tax burden at 4.36%, 2nd in individual income tax burden at 4.63%, and 31st in sales and excise tax burden with 3.03%. WalletHub’s analysis aims to shed light on the disparities in tax burdens across states, highlighting the varied financial landscapes faced by Americans based on their residency.

Source: WalletHub

Experts contributing to the report advocate for the fairness of progressive income taxes, which levy higher rates on those with greater incomes, while pointing out the regressive nature of sales taxes on lower-income populations. Despite differing opinions on tax fairness and efficiency, the consensus underlines the importance of a balanced tax system, incorporating income, sales/use, and property taxes, to ensure equitable contributions from all economic sectors. As the debate on tax fairness and efficiency continues, the insights from WalletHub’s report offer a critical lens on the ongoing dialogue regarding tax policies in the United States.

Categories: New York StateNews