The Citizens Budget Commission (CBC) released a report on the 23rd, showing that the per capita tax burden of residents in New York State and local governments ranks highest in the United States, while per capita government spending ranks second, only behind Alaska.
According to analysis based on data from the 2024 fiscal year, New York State and local governments collect approximately 71% more in taxes per resident compared to the national average, and 22% more than California, which ranks behind New York in terms of per capita government spending. New York ranks second only to Alaska, which has higher spending due to its oil resources and unique financial structure, making it the highest in per capita spending among all the states in the contiguous United States, exceeding the national average by 44%.
When observing the types of taxes, New York’s personal income tax burden stands out, with the state and local governments collecting around $41 in personal income tax per $1,000 of personal income, 94% higher than the national average. The ratio of corporate tax to gross state product is also the highest in the country. Additionally, New York ranks third in property taxes, sixth in sales taxes, and 13th in other categories of tax revenue.
The CBC pointed out that New York’s high taxation is related to various institutional factors, including the relatively high progressiveness of state income tax and the additional local income tax levied by New York City, which places a heavier tax burden on high-income residents. Moreover, the generally higher property values in New York lead to substantial property tax revenue for local governments. The city of New York also imposes congestion fees on drivers south of 60th Street in Manhattan, with the revenue used to support the Metropolitan Transportation Authority’s (MTA) capital budget expenditures.
Education and healthcare are among the primary expenditure items in New York. The annual expenditure per student from public kindergarten to 12th grade in New York is approximately $34,000, ranking at the top nationwide. The per capita expenditure for the Medicaid program is around $4,940, also higher than the national average. The CBC believes that policy discussions should not only focus on tax rates and expenditure size but also further examine their effectiveness.
As New York State enters the final stages of the 2026 gubernatorial election, Democratic incumbent Governor Kathy Hochul and Republican Nassau County Executive Bruce Blakeman will face off in the general election in November.
The two candidates have differing views on tax policies. Blakeman advocates for cutting income taxes and has made New York’s high tax burden one of his campaign issues. On the other hand, Hochul has stated that the state government has reduced income tax rates for middle-class families and lowered the burden on families through measures such as inflation rebates, energy assistance, and child tax credit offsets.