New York Leads Nation in Tax Burden and Per-Capita Spending, Report Shows

According to a Citizens Budget Commission report released Wednesday, New York extracts the greatest amount of tax revenue per resident in the United States, exceeding the national average by 71% and surpassing California by 22%. The state also ranks second among all states in per-capita spending, trailing only oil-rich Alaska, and outlays more than Massachusetts, New Jersey, Texas and Florida. New York leads in personal income tax collected per $1,000, corporate tax per $1,000 of GDP, and ranks among the highest for property, sales and other taxes.

The study attributes the steep tax burden to a broad tax structure, high income rates, and substantial property taxes, including a 6% commercial rent tax in Manhattan. It cautions that the combination of high taxes and costly public services may weaken New York's appeal to residents and businesses, a point highlighted as the state heads into a governor's race between Democrat Kathy Hochul and Republican Bruce Blakeman.