The Tax Foundation

Tax Data

New York

The Facts on New York’s Tax Climate

Here are some basic facts on New York’s tax system and how it compares to other states:

Tax Freedom Day Arrives on May 5 in New York
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2008, New York taxpayers had to work until May 5, ranking it 3rd highest in the nation, 12 days after the national Tax Freedom Day (April 23). The Tax Freedom Days of neighboring states are; Pennsylvania, April 21st (ranked 18th), New Jersey, May 7th (ranked 2nd), Connecticut, May 8th (ranked 1st) and Vermont, April 19 (ranked 24th).

Tax Freedom Day has been projected using the most up-to-date economic and budget projections from official government agencies. However, Tax Foundation estimates of average state and local tax rates for 2008 will not be released until later this spring as we await more up-to-date data from various government agencies.
Full study of Tax Freedom Day, nationwide and in each state

New York's State/Local Tax Burden Third Highest in Nation in 2007
During the past three decades New York has consistently had one of the nation's highest state/local tax burdens. Estimated at 13.8% of income, New York's state/local tax burden percentage stands as the 3rd highest nationwide, well above the national average of 11.0%. New Yorkers pay $6,522 per-capita in state and local taxes, and state per capita income is $47,176.
New York's State-Local Tax Burden, 1970-Present

New York's 2008 Business Tax Climate Ranks 48th
New York ranks 47th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. Neighboring states ranked as follows: Pennsylvania (27th), New Jersey (49th), Connecticut (38th) and Vermont (44th). 
50-State Comparison of Business Tax Climates (data only)
2008 State Business Tax Climate Index, Fifth Edition (full study)

New York's Individual Income Tax System
New York's personal income tax system consists of five brackets with a top rate of 6.85%, kicking in at an income level of $20,000. Among states levying personal income taxes, this top rate ranks the state 16th highest nationally. New York's 2005 individual income tax collections were $1,804 per person, which ranked the highest in the nation.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita

New York's Corporate Income Tax System
New York's corporate tax structure is composed of a flat rate of 7.1% on all corporate income. Among states levying corporate income taxes, New York's rate ranks 25th highest. In 2006, state-level corporate tax collections (excluding local taxes) were $208.13 per capita and ranked 9th highest nationally.
50-State Table of Corporate Income Tax Rates, 2000-2008
50-State Table of State and Local Corporate Income Tax Collections Per Capita and Per Household, 2005
50-State Table of State Corporate Income Tax Collections Per Capita, 2006

New York Sales Tax Low at the State Level, High Locally; Excise Taxes High
New York levies a 4% general sales or use tax on consumers, below the national median of 5.4%. On the other hand, the state permits its localities to levy much higher sales taxes than other states do. In 2005, state and local governments combined collected $1,452 per capita in general sales taxes, which ranks 12th highest nationally. New York's gasoline tax stands at 41.2 cents per gallon, which is the third-highest gas tax in the nation. New York's cigarette tax stands at $1.50 per pack of twenty, ranking 16th highest nationally. The sales tax was adopted in 1951, the gasoline tax in 1923 and the cigarette tax in 1941.
50-State Table of Sales and Excise Tax Rates
50-State Table of State and Local General Sales and Gross Receipts Tax Collections Per Household and Per Capita, Fiscal Year 2005

New York Property Taxes among Nation's Highest
New York's local governments collected $32,333,564,000 in property taxes during fiscal year 2004, which is the latest year the Census Bureau published state-by-state property tax collections. New York is one of the 13 states that collect no state-level property taxes, meaning its per capita property tax collections equaled $1,677 for all levels of government in FY2004, ranking it 4th nationally.
State property tax collections per capita by state

Federal Tax Burdens and Expenditures: New York is a Donor State
New York taxpayers receive less federal funding per dollar of federal taxes paid than the average state. Per dollar of Federal tax collected in 2005, New York citizens received approximately $0.79 in the way of federal spending. This ranks the state 42nd lowest nationally and represents a decline from 1995, when New York received $0.87 per dollar of taxes in federal spending (ranked 40th nationally). Neighboring states and the amount of federal spending received per dollar of federal taxes collected were: Pennsylvania ($1.07), New Jersey ($0.61), Connecticut ($0.66), and Vermont ($1.08).
Comparing the amount of federal taxes sent to Washington with the amount of federal spending coming back to the state

Tax Data from The Tax Foundation