New Yorkers face the second-highest overall state and local tax rates in the country, according to a new national analysis released ahead of tax season.
A WalletHub study ranked New York 50th overall for effective state and local tax rates, placing it near the top for total tax burden compared to other states.
The report compared all 50 states based on income, property, and sales and excise taxes.
New York ranked 49th for income taxes and 46th for real estate taxes, both among the highest in the nation. The state ranked closer to the middle for sales and excise taxes at 23rd.
WalletHub analyst Chip Lupo said differences between states can have a major impact on residents’ finances.
“Every year during tax season, Americans are reminded of just how much of their hard-earned income isn’t theirs to keep,” Lupo said. “Living in the right state can ease the stress of tax time, though, as taxpayers in the least expensive states pay less than half as much as those in the most expensive states.”
The study was released alongside WalletHub’s 2026 Taxpayer Survey, which found affordability concerns outweigh tax worries for many Americans.
According to the survey, 78% of Americans say they are more worried about affordability than taxes right now, while 66% believe their current tax rate is too high.
Nearly all respondents — 95% — said filing taxes should be free, and more than four in five said people should budget throughout the year to prepare for tax payments.
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