New York is the worst tax state for the wealthy: report

California has higher tax rates for uber-rich

New York /
Mar.March 23, 2015 04:00 PM

High-income earners pay more of their income in tax in New York than any other state — 12.4 percent, according to a new study from WalletHub. 

Although the findings may not come as a major surprise, the numbers do not line up with California, the state that taxes its wealthiest residents at the highest rate. The study finds Californians in the top 1 percent of wealth pay 8.7 percent of their income in property, sales, income and excise taxes, while in New York, they pay 8.1 percent, Crain’s reported.

However, because of the study’s methodology, which separated out three separate groups — low income ($25,000), middle income ($50,000) and high income ($150,000) — New York came out as the least advantageous state for high income earners because it taxes wealthy residents who fall just below the top 1 percent far more than California does.

For the 19 percent of earners beneath the top 1 percent, New Yorkers paid 10.9 percent of their income in income, property, sales and excise tax, whereas Californians paid just 7.4 percent or 8.7 percent.

Overall, New York ranked 43rd worst for low income earners, at 10.89 percent total taxation, worst in the country for middle income earners, at 12.4 percent, and worst for high income earners, at 12.4 percent. [Crain’s] — Tess Hofmann

 

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