“After 114 days of working for government, New Yorkers can finally begin working for themselves. This year, New York State’s ‘Tax Freedom Day’ – the day when individuals have finally earned enough to pay off their annual total tax bill – fell on April 24, some 12 days after national Tax Freedom Day, which was back on April 12. Ask any business owner and they will tell you: New York State’s crushing high taxes hurt the bottom line and cost jobs.
New York is still one of America’s highest-taxed states – unless we take concrete steps to reduce the cumulative burden of our property, individual income, corporate, gasoline and sales taxes, the engine of private sector job creation will remain stuck in neutral. It is not nearly enough to defeat schemes like an extension of the ‘Success Tax,’ or for the State Budget to merely hold the line on further tax hikes. We need to cut taxes and deliver the type of real tax relief that will jumpstart our economy, grow private sector jobs and put folks back to work.”
Facts from the non-partisan, independent Tax Foundation website
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 percent of income (2nd nationally), above the current national average of 9.8 percent. Compared to the 1977 data, New York had a rate of 13.2 percent (1st nationally), decreasing 1.1 percent overall. Currently residents pay $6,157 per capita in state and local taxes.
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 the 13 states that collect no state-level property taxes. Its per capita property tax collections in FY2006 ranked 5th nationally.
NEW YORK'S 2011 BUSINESS TAX CLIMATE RANKS 50th (DEAD LAST)
New York ranks 50th – dead last – in the Tax Foundation’s “State Business Tax Climate Index.” The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. Neighboring states ranked as follows: Pennsylvania (26th), New Jersey (48th), Connecticut (47th), and Vermont (38th).
NEW YORK’S INDIVIDUAL INCOME TAX RATE NATION’S 8th HIGHEST
New York’s personal income tax system consists of seven brackets with a top rate of 8.97 percent, 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.
NEW YORK’S CORPORATE INCOME TAX RATE NATION’S 24th HIGHEST
New York’s corporate tax structure is composed of a flat rate of 7.1 percent 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.
NEW YORK SALES AND EXCISE TAXES SOME OF AMERICA’S HIGHEST
New York levies a 4 percent general sales or use tax on consumers, below the national median of 5.85 percent. 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.
Editor’s Note: All of these New York State-specific tax facts and are available on the Tax Foundation’s official website.