New York Tax Rates Exposed: How Do We Compare?

With Tax Day 2026 right around the corner, many of us are thinking about what we might utilize our returns for (if we're getting one), while those who work 'in the business' are in the heart of the busiest season of the year.

Ahead of Tax Day, a recent survey and annual report has just been released that highlights some important tax related information to keep in mind, as well as a ranking of states with the highest and lowest tax rates in the country - do you want to know how New York did?

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What Did The 2026 Taxpayer Survey Include?

The WalletHub survey referenced above indicated that 78% of Americans are more worried about affordability than taxes right now, however, simultaneously, 66% of Americans think that their current tax rate is too high.

Every year, the average U.S. household pays nearly $14,000 in federal income taxes. And while we’re all faced with that same obligation, there is significant difference when it comes to state and local taxes. Taxpayers in the most tax-expensive states, for instance, pay more than twice as much as those in the cheapest states.

95% of Americans think that filing taxes should be free, as the cost of having your taxes prepared for filing is too high. Additionally, more than 4 in 5 Americans believe people need to budget throughout the year to afford tax payments. As New Yorkers, I think we can agree with these sentiments, as we are hit hard when it comes to taxes.

New York's Less Than Ideal Tax Ranking

A comparison between all 50 states and the District of Columbia to see where taxpayers pay the least and most revealed statistics that are unlikely to be surprising, especially to us as New Yorkers, as our wallets and bank accounts obviously feel the impact of our less than ideal tax rates.

Source: WalletHub

New York, coming next to last, as in 50 out of 51 for overall ranking, shows the second highest tax rates in the country. When based on median U.S. household numbers, NY had an 'effective total state and local tax rate' of 14.95% as compared to Alaska's 6.94%. Alaska ranked in the number one position, making it the state with the lowest tax rates in the country. As for annual state and local tax amounts, New York's $12,143 is more than double Alaska's number of $5,634.

When it comes to real estate tax rates, New York sits at 6.36% putting us in the 46th spot out of 51, and with an effective income tax rate of 3.80%, a ranking of 49th for income taxes.

A complete breakdown of the state by state analysis and how the New York numbers compare can be accessed here.