New York Taxes Again Among Worst in U.S.
The closer we get to Income Tax Deadline Day, the more we think about our money, and the more we weigh our tax situation against our geographic neighbors and compare our situation in New York state with the economies of others.
New York again grades out near the bottom of U.S. states when it comes to taxes. Only three states had higher taxes than New York. There are also some other interesting numbers in WalletHub's 2018 study.
The three states with higher tax rates than New York are Nebraska, Connecticut and Illinois. Taxes in New York are over 27% higher than the national average.
New York also has the the highest cigarette taxes (tied with Connecticut) and the fifth-highest gasoline taxes in the country.
The folks at WalletHub say tax situations from state to state can be misleading:
Washington’s citizens don’t pay income tax, but they still end up spending over 8% of their annual income on sales and excise taxes. Texas residents also don’t pay income tax, but spend 1.86% of their income on real estate taxes, one of the highest rates in the country.
If you'd like to escape Central New York and find the best tax climate, you'll have to travel a bit. Alaska is #1, with taxes coming in 47% lower than the national average. If you're looking to combine lower taxes with warmer weather, Florida and California are both in the top ten, but have other negative issues.
The closest state geographically to New York with a better tax rate is New Hampshire, where the taxes are almost 5% better than the U.S. average.