NY Is 2022's State With The Highest Tax Burden: Study

NEW YORK — It isn't a surprise to New Yorkers that the taxes we pay where we live and work can at times be painful.

But, with tax day fast approaching, New Yorkers might be surprised to find out that, according to a recent study, the tax burden in the state is the highest in the country.

According to a WalletHub study, the average U.S. household pays $10,000 in federal income tax each year; however, where they live and the rate at which they are taxed at the state and local levels play a significant role in how much they pay in total taxes every year.

SEE ALSO: New York's Not The Worst When It Comes To Property Taxes

In order to determine which states tax their residents most aggressively, WalletHub compared the 50 states based on the three components of the state tax burden — property taxes, individual income taxes, and sales and excise taxes — as a share of total personal income.

Tax Burden in New York (1=Highest, 25=Avg.):

• 1st – Overall Tax Burden (12.75 %)
• 6th – Property Tax Burden (4.43%)
• 1st – Individual Income Tax Burden (4.90%)
• 25th – Total Sales & Excise Tax Burden (3.42%)

New York's highest tax burden (12.75%) in the country is followed by Hawaii (12.70%), Maine (11.42%), Vermont (11.13%) and Minnesota (10.2%). The states with the lowest tax burdens in the country are Alaska (5.06%), Tennessee (5.75%), Delaware (6.22%), Wyoming (6.32%) and New Hampshire (6.41%).

"The jury is out on this one — the ability of state taxes to contribute to economic growth depends critically on the use of those funds," Associate Director, Boyd Center for Business & Economic Research Donald Bruce said of the Wallet Hub survey. "Some states raise more revenue in taxes, but use that revenue to provide a menu of public services that can contribute in meaningful ways to economic growth. Examples are infrastructure projects and investments in human capital via public schools and universities and job-training programs. The right balance comes in raising the amount of revenue to provide the desired public services without having a tax burden that is high enough to cause some taxpayers to leave the area."

No matter how you feel about the tax policy here in New York, ready or not, this year's tax filing deadline is April 18.