New York ranks near bottom nationally for state and local tax burden, study finds
Taxes remain a top concern for Long Islanders who say the rising cost of living is making it harder to afford staying in the region.
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A WalletHub analysis shows New York residents face some of the highest taxes in the country, with Long Islanders saying affordability is slipping further out of reach.
Taxes remain a top concern for Long Islanders who say the rising cost of living is making it harder to afford staying in the region.
“Everybody I know would like to see taxes lowered,” said Dave Kluepfel of Brightwaters.
Those concerns are backed up by new data. A recent WalletHub study analyzed state and local tax rates across all 50 states and the District of Columbia. New York ranked 50th overall — second to last — for state and local tax rates. Only Illinois ranked worse.
“I think taxes have to be reduced, cost of living has to be reduced,” said Jericho resident Ajay Bhavnani.
WalletHub analyst Chip Lupo said multiple factors are driving New York’s low ranking.
“High real estate taxes, which are near the top nationally, high income taxes at about a 3.8 effective rate, which is among the highest,” Lupo said.
He added that taxes on goods and services also play a role.
“New York has the highest cigarette taxes — 51st — that makes them the most expensive, which is 31 times more than the lowest-taxed state, which is Missouri,” Lupo said.
According to Lupo, neighboring states are not far behind. New Jersey, Pennsylvania, and Connecticut also rank among the most heavily taxed states in the country.
For some Long Islanders, the concern goes beyond day‑to‑day expenses. Kluepfel said the high tax burden could push younger generations away.
“I have friends my age who are thinking about leaving,” Kluepfel said. “They don’t want to stay. They can’t afford to stay.”
He said he worries about what that means for his own family.
“I have three kids, college age. They’re going to be graduating soon,” Kluepfel said. “I’d love to see them be able to afford to live here on Long Island. It’s such a special place, but it’s just too expensive.”
The WalletHub report underscores what many residents say they feel every day: that New York’s tax burden is making affordability increasingly difficult for families across Long Island.
