A total of 12.6 percent of New York residents’ income went to state and local taxes in 2011, the highest rate in the nation, according to a report Wednesday from a conservative think tank.
The Washington-based Tax Foundation’s annual report placed New York at the top of the list for at least the second straight year, though the total burden dropped from 13.1 percent in 2010.
The report, which relies on Census figures, is based on the most-recent available data, according to the think tank. The national average for 2011 was 9.8 percent, according to the report.
“Though the annual burdens report won’t reflect the effects of recent changes for several years because of a lag in the availability of data, New York’s 2011 state-local tax burden—the highest in the nation— shows just how necessary tax reform is in New York,” Tax Foundation economist Liz Malm said.
New York was followed by New Jersey at 12.3 percent and Connecticut at 11.9 percent, while the report ranked Wyoming last at 6.9 percent.
The report counts taxes paid to local governments, school districts and the state, as well as taxes paid to other states by New York residents working elsewhere.
On a per-capita basis, New Yorkers paid $6,622 in state and local taxes in 2011, according to the Tax Foundation.
In late 2011, Gov. Andrew Cuomo and the state Legislature did make changes to the state’s income-tax rates, with married filers earning more than $2 million in annual income paying a higher rate than what was to take effect in 2012.
For those earning between $300,000 to $2 million, the rate reverted back to 6.85 percent in 2012, as had been previously scheduled. Those with incomes of less than $300,000 saw a modest decrease to as low as 6.45 percent as part of the deal, which has generated about $2 billion annually in additional tax revenue for the state.
(Chart via the Tax Foundation)