New Yorkers Pay Significantly Higher Taxes Than Neighboring States

New York has the second-highest total state and local tax burden in the country, costing residents thousands more per year compared to nearby states.

Published on Feb. 11, 2026

Got story updates? Submit your updates here. ›

New York consistently ranks among the highest-taxed states in the country, with a total state and local tax burden of 13.56% of personal income - the second-highest in the nation. This is significantly higher than neighboring states like New Jersey (10.30%), Pennsylvania (8.58%), and other popular relocation destinations like Florida (6.49%) and Texas (7.77%). The tax disparity adds up quickly, with New Yorkers earning $200,000 potentially saving over $10,000 annually by living in Pennsylvania instead, and over $14,000 by moving to Florida.

Why it matters

High taxes are a major factor driving the "New York Exodus" as residents and businesses flee the state for lower-tax alternatives, especially in the Hudson Valley region that borders other states. The tax burden difference is a key consideration for families deciding where to live, work, and retire, as well as for business owners weighing expansion plans.

The details

New York's total state and local tax burden of 13.56% of personal income makes it the second-highest taxed state in the country, behind only Connecticut. In comparison, New Jersey's tax burden is 10.30% (6th highest), Pennsylvania's is 8.58% (30th highest), and Florida and Texas are even lower at 6.49% (45th) and 7.77% (40th) respectively. For a New Yorker earning $200,000 per year, the tax savings from moving to Pennsylvania or Florida could exceed $10,000 or $14,000 annually.

  • New York has consistently ranked among the highest-taxed states for years.

The players

New York

The state of New York, which has the second-highest total state and local tax burden in the country at 13.56% of personal income.

New Jersey

A neighboring state to New York, with a total state and local tax burden of 10.30% of personal income, ranking 6th highest nationally.

Pennsylvania

A neighboring state to New York, with a total state and local tax burden of 8.58% of personal income, ranking 30th highest nationally.

Florida

A popular relocation destination for New Yorkers, with a total state and local tax burden of 6.49% of personal income, ranking 45th highest nationally.

Texas

Another popular relocation destination for New Yorkers, with a total state and local tax burden of 7.77% of personal income, ranking 40th highest nationally.

Got photos? Submit your photos here. ›

The takeaway

The significant tax disparity between New York and neighboring states like New Jersey, Pennsylvania, Florida, and Texas is a major driver of the "New York Exodus" as residents and businesses seek to reduce their tax burden by relocating. This difference in tax burden is a crucial factor in personal and business decisions around where to live, work, retire, and expand operations.