New York’s Wealthiest Pay Highest Taxes

By Alan Olsen

New York, New York it’s the town so nice they named it twice. However, when it comes to taxes, it can feel like you pay them twice, especially if you’re among the wealthiest individuals living there. New York offers some of the greatest entertainment and tourist attractions in the world and many people who call New York home wouldn’t trade it for anywhere else. However, living in New York comes with high price tag for many, especially if you happen to be very rich. The high tax bill isn’t just for those in New York City, either. According to WalletHub, New York State has the highest tax burden on the wealthy than anywhere else in the country.

Wealthy New Yorkers Hit Hardest

When you take a closer look at the numbers it’s easy to see why. According to a recent report from WalletHub, people in New York who make $150,000 or more each year have a combined tax burden of 12.4 percent, which does not include federal income tax. Those numbers are based on property, sales and income tax. Connecticut was second place with a tax burden of 11.2 percent, while Maryland and New Jersey were third and fourth, with tax burdens of 10.4 percent and 10.3 percent, respectively. Meanwhile, on another note, New Jersey was also the sixth worst location to call home when you retire.

No Break for the Middle Class

Some might argue that there is nothing wrong with the high tax rate because the wealthy should be paying more. However, according to the numbers, the news wasn’t any better for New Yorkers who fall into the middle class. Throughout the state, even those whose average income was $50,000 a year were also paying 12.4 percent of their hard-earned money to taxes. Not surprisingly that is also higher than anywhere else in the country.

West Coast Bias

In contrast, if you’re looking for a place to call home where the tax burden lies on the other end of the spectrum, then you’ll have to heads west, in most cases. That’s because the lowest tax burden for the wealthiest individuals can be found in Alaska, where wealthy residents have a 3.4 percent tax burden. Wyoming, Tennessee and Nevada also can be included among the states with the lowest tax burdens, while the best place to live if you’re among the lower class is in Delaware, Montana and Nevada.

We Can Help No Matter Where You Live

No matter where you live, you might feel that your tax burden is higher than you think is fair. While you can always choose to move, for most people that isn’t an option. However, there are ways to plan for your taxes and manage your wealth that can lead to savings on your tax bill. If you live in New York, or anywhere else that the wealthy are hit hardest, then you should get in touch with us at GROCO. We help clients from all over the country and from all over the world. We can help you too. Please contact us today by clicking here or give us a call at 1-877-CPA-2006.

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