New York Tax Collection Hits $162 Billion, But Many Residents Eye Leaving

State sees rise in tax revenue, but high tax burden leads 33% to consider moving out

Published on Feb. 27, 2026

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New York state collected a record $162 billion in taxes last year, a $6.7 billion increase from the previous year. The rise was largely due to strong stock market performance. However, a Marist poll found that 33% of New Yorkers are considering leaving the state in the next five years, with 15% citing taxes as a reason.

Why it matters

New York's high tax burden, including the state having the lowest competitive income tax ranking among all 50 states, is driving many residents to consider relocating despite the state's strong tax revenue growth. This raises concerns about the long-term economic and demographic outlook for New York.

The details

Acting Tax Commissioner Amanda Hiller said most New Yorkers and businesses have 'modest income tax burdens,' but the state's highest earners face the 'highest combined tax rates in the country.' State Senator Steven Rhodes challenged Hiller on the inclusion of tax increases in the budget, to which she responded that the governor has not proposed raising taxes, only extending the top marginal tax rate.

  • Last year, the state collected $162 billion in taxes, an increase of $6.7 billion from the previous year.
  • Sales taxes also saw a rise of $1.2 billion.

The players

Amanda Hiller

The acting commissioner of the New York Department of Tax and Finance.

Senator Steven Rhodes

A state senator from Nassau County who challenged Hiller on the inclusion of tax increases in the budget.

Brahvan Ranga

A representative from Invest in Our New York, who said that while the state has gained millionaires and billionaires, working people are leaving due to affordability concerns.

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What they’re saying

“Most New York and businesses have modest income tax burdens but our highest earning individuals and businesses pay the highest combined tax rates in the country.”

— Amanda Hiller, Acting Commissioner, New York Department of Tax and Finance

“The Tax Foundation states competitive income tax rankings for 2025 put New York dead last out of 50 states.”

— Senator Steven Rhodes, State Senator, Nassau County

“Studies have shown that while the state has gained millionaires and billionaires in recent years, working people are leaving the state because they can no longer afford to live here.”

— Brahvan Ranga, Invest in Our New York

The takeaway

New York's success in tax collection has come at the cost of a high tax burden that is driving many residents to consider leaving the state, raising concerns about the long-term economic and demographic outlook. The state will need to balance its revenue needs with the affordability concerns of its working population to retain its residents and businesses.