Tax season can be a confusing time, especially here in NYC. Between federal, state, and local filings, New Yorkers are navigating more layers than most Americans. And according to a new report from WalletHub, they’re also paying more.
The study ranks New York 50th out of 51 for overall tax burden, estimating that a median-income household pays nearly $12,000 a year in combined state and local taxes — roughly 36% higher than the national average. Only Illinois ranks worse.
For city residents, one major difference is the additional income tax levied by New York City, something most major U.S. cities don’t impose.
On top of state income taxes, that extra percentage can make a noticeable dent in wallets. Homeowners, particularly in the suburbs surrounding the city, also face some of the highest property tax burdens in the country.
Even renters aren’t immune — landlords factor property taxes into rent, and New York’s relatively high sales tax means everyday purchases add up quickly.
Still, the ranking reflects what New Yorkers pay, not necessarily what they receive in return. The ranking doesn’t factor in public services, infrastructure, transit systems, schools, or healthcare access. In a state like New York, those services are expansive.
Residents rely on one of the largest public transit systems in the country through the MTA, a vast public higher education network including SUNY and CUNY, and an extensive range of social and public health programs. Supporters of the state’s tax structure argue it helps fund these extensive services that define life here.
Critics counter that the overall cost of living — taxes included — continues to push some residents to consider lower-tax states like Florida or Texas.
Either way, the takeaway is clear: in New York, tax season isn’t just paperwork, but rather a reminder that living here comes at a premium.
At the end of the day, taxes are only one part of the bigger picture of living in New York. Yes, the price tag can be high — but so is the energy and opportunity that come with it.
Whether you’re here for the career climb, the creativity, the community, or simply because it’s home, there’s a reason so many people choose to stay. In New York, you may pay more — but for many, the tradeoff is more than worth it. ❤️
And for all of the resources NYC is offering this tax day, see here.