New York Taxes Rank Highest in the U.S. as Spending Runs 44% Above Average

New York ranks first in the United States in state and local taxes collected per capita, a distinction that has renewed debate over the cost of living and doing business in the state.

• State and local governments collected 71% more taxes per person than the national average during fiscal year 2024, according to a new report from the Citizens Budget Commission (CBC), as reported by The Center Square.
• The difference is also substantial compared with other high-tax states: New York collected 22% more per capita than California, 26% more than Connecticut, and 36% more than New Jersey.

Why it matters: Taxes are one part of the cost faced by households and businesses, but the broader debate is also about the level and quality of public services taxpayers receive in return.

New York Also Ranks High in Spending

The report places New York second in the nation in state and local spending per capita, behind only Alaska.

• That spending was 44% higher than the U.S. average, 40% higher than New Jersey’s, and 96% higher than Florida’s.

The CBC also made a comparison that puts the difference into perspective: It estimates that New York would have spent $99 billion less in 2024 if its per-capita spending had matched New Jersey’s.

The figure does not mean that $99 billion in waste has been identified. It is a hypothetical comparison showing how much lower New York’s spending would have been at New Jersey’s per-capita level.

Income Tax Also Stands Out

The difference also appears when taxes are measured against residents’ economic resources: New York collected 46% more in state and local taxes per $1,000 of personal income than the national average.

• For personal income taxes specifically, collections per $1,000 of income were 94% higher than the U.S. average, the highest among the states.

This does not mean that every New Yorker pays the same tax rate. New York’s state income tax is progressive, and the rate depends on taxable income and filing status.

For 2026, the highest marginal state income tax rates are 9.65%, 10.3%, and 10.9% for taxpayers in the highest income brackets.

What Do Taxpayers Get for Their Taxes and Higher Cost of Living?

The CBC argues that New York does not need to become a low-tax, low-spending state, but that it should improve the value delivered for each public dollar.

The organization recommends improving the quality of public services, increasing government efficiency, and prioritizing policies that support affordability and quality of life.

• It also argues that raising a tax burden that already ranks highest in the country could increase the cost of living and doing business in New York.

The challenge, therefore, is not only how much New York collects: It is also whether that high fiscal burden translates into public services and outcomes that meet taxpayers’ expectations.