Here are some basic facts on New York’s tax system and how it compares to other states:
Tax Freedom Day Arrives on April 24 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 2011, New York taxpayers work until April 24, ranking it 3rd highest in the nation, 12 days after the national Tax Freedom Day (April 12). The Tax Freedom Days of neighboring states are; Pennsylvania, April 14 (ranked 13th), New Jersey, April 29 (ranked 2nd), Connecticut, May 2 (ranked 1st) and Vermont, April 10 (ranked 18th).
Full study of Tax Freedom Day, nationwide and in each state
New York’s State and Local Tax Burden Second-Highest in Nation
During the past three decades, New York’s state and local tax burden percentage has ranked among the nation’s highest, currently estimated at 12.1% of income (2nd nationally), above the current national average of 9.8%. Compared to the 1977 data, New York had a rate of 13.2% (1st nationally), decreasing 1.1% overall. Currently residents pay $6,157 per capita in state and local taxes.
New York’s State-Local Tax Burden, 1977-Present
Other States’ State/Local Tax Burdens
Map of U.S. Showing all State’s Burdens and Ranks
Historical Chart Comparing All States’ State/Local Tax Burdens from 1977 to 2009
New York‘s 2012 Business Tax Climate
The ninth edition of the State Business Tax Climate Index will be released on January 25. Please check back then or sign up to receive an email notification when it’s published.
New York’s Individual Income Tax System
New York’s personal income tax system consists of seven brackets with a top rate of 8.97%, kicking in at an income level of $500,000. Among states levying personal income taxes, this top rate ranks the state 8th highest nationally. New York’s 2008 state-level individual income tax collections were $1,880 per person, which ranked 3rd 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 24th highest. In 2008, state-level corporate tax collections (excluding local taxes) were $259 per capita and ranked 8th highest nationally.
50-State Table of Corporate Income Tax Rates, 2000-2009
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 and Excise Taxes
New York levies a 4% general sales or use tax on consumers, below the national median of 5.85%. However, the state permits its localities to levy much higher sales taxes than other states do. In 2007 combined state and local general and selective sales tax collections were $1,677 per person, which ranks 11th highest nationally. New York’s gasoline tax stands at 44.6 cents per gallon-the highest gas tax in the nation. New York’s cigarette tax stands at $2.75 per pack of twenty-the 4th 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, cigarette, gas, beer, wine, and spirits tax rates.
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
New York Property Taxes among Nation’s Highest
New York’s local governments collected $1,890.70 per capita in property taxes during fiscal year 2006, which is the latest year the Census Bureau published state-by-state property tax collections. New York is one of the13 states that collect no state-level property taxes. Its per capita property tax collections in FY2006 rank 5th 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