Study Finds New Yorkers Pay Highest State And Local Taxes

by Leroy Baker, Tax-News.com, New York

13 September 2004

Residents of New York pay the highest state and local taxes in America, according to a new study examining the tax burden and competitiveness of each US state.

The study, undertaken by the Massachusetts Taxpayers Foundation, found that New York taxed its citizens most heavily, with taxpayers contributing $132 for every $1,000 in income in 2002.

This compares to the $84 tax for every $1,000 income in the least taxed state of Tennessee.

The study also found New York’s income tax system to be the most progressive in the nation with residents paying out $44 in personal income tax per $1,000 income, up $2.50 since 1992.

Meanwhile, Hawaiians pay the most in sales and excise taxes which account for $64 of every $1,000 earned. The citizens of Oregon paid the least amount of these taxes, at just under $9 per $1,000.

Property taxes were found to be highest in the North Eastern States of Maine, New Hampshire and New Jersey at $55, $51 and $48 per $1,000 income respectively. Alabama and Delaware had the lowest real estate taxes at $13 and $16 respectively.

The study suggested that state and local tax burdens have been falling on average over the last ten years. Compared to a decade ago, the average US taxpayer is shelling out $6 less when all taxes and fees were analysed, at $152 per $1,000 income.

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