NEW YORK — With tax day almost a month away, a recent study found that taxes in New York State are some of the highest in the country.
The study States with the Highest & Lowest Tax Rates, conducted by WalletHub, found that taxpayers in the most expensive states sometimes pay up to three times more than those in the cheapest states. However according to WalletHub, low income taxes do not always result in low taxes as a whole.
The study compared state and local tax rates in the 50 states and the District of Columbia against national medians, determining that tax rates in New York State are the third highest in the nation. Also, Alaska was determined to have the lowest tax rates and Illinois had the overall highest.
WalletHub relative income-tax obligations by applying the effective income-tax rates in each state and locality to the average American’s income.
Additional specific findings for New York are included below:
- Overall lowest vehicle property tax: 0%
- 3rd highest overall effective state and local tax rate: 14.08%
- 6th highest income tax: $2,107
- 7th highest real-estate tax: 5.93%
- 17th highest sales and excise taxes
In light of the tax-filing deadline of April 15, WalletHub also lead a 2021 taxpayer survey. The survey concluded the following;
- 74% of people say the government has not handled their tax dollars wisely during the COVID-19 pandemic
- Biggest Tax Day fear:
- Making a math mistake: 30%
- Not having enough money: 29%
- Identity theft: 21%
- What people would do for a tax-free future
- Move to a different country: 8%
- Get an IRS tattoo: 27%
- Stop talking for six months: 19%
- 2% of people think charities would make the best use of their tax dollars
- 222 million Americans think the government does not spend taxes wisely
For the full study, visit the WalletHub website.