Subject: Re: Out and out winner
Boy, the American voters really screwed up.

Umm, I think you mean to say New York State voters are really screwed up.

AlphaWolf spends his time searching the world wide web for dirt on President Trump, MAGA and the Republican Party.

All he has to do is look in the mirror, look at the town he lives in and in whole,
New York State to see the screwed up New York voters.

They are liberals, socialist and democrats.
Look what they have done to their State....


The Worst State For Taxes In America Is Not A Surprise. The Details Still Are.
May 13, 2026
Chris Landqvist
Case Study, State Taxation


New York
Every countdown has a moment where the reveal feels inevitable. You already know where this is going. New York. Number one on my personal list of worst states for taxation. The only state in this series that earned its own article.

Before we get into it, a quick recap of where we have been. Article 1 covered Hawaii and Connecticut, two states that cost far more than most people expect before they arrive: The States That Tax You With a Smile. Article 2 covered California and New Jersey, two states whose reputations are accurate and whose full picture is still worse than advertised: The States Everyone Warns You About. If you want the full picture before diving into number one, both are worth your time.

New York is different from every other state in this series. Not because it is simply more expensive, though it is. It is different because it has built a tax system so layered, so deliberately complex, and so aggressive in its reach that it functions almost like a toll booth at every stage of economic life. You pay to earn. You pay to own. You pay to sell. You pay to leave. And if you try to leave without doing it exactly right, New York will argue you never left at all.

That is not hyperbole. That is the system.

The Numbers That Put New York at the Top

Start with the total tax burden. New York carries a total state and local tax burden of 15.9% of personal income in 2026. That is the highest of any state in the country. That is not a rounding difference when compared to other areas of the United States. It is a structural choice about how much of your economic output your state believes it is entitled to.

The top individual income tax rate in New York State sits at 10.9%. That rate alone would be enough to make this list. New York City then adds its own progressive income tax on top of that, with a top rate of 3.876%. For a business owner or high earner living and working in the city, the combined state and local income tax rate reaches nearly 15%. No other major city in the country stacks these layers the way New York does.

The Recapture Provision Almost Nobody Knows About

Here is something that does not get nearly enough attention. New York is one of only two states in the country with a tax benefit recapture provision. What that means in practice is that as your income rises, the benefit of the lower brackets gets phased out. By the time you reach a certain income level, your top rate applies not just to income above that threshold but to all of your income. Every dollar. The progressive structure essentially disappears and becomes a flat high rate applied to everything you earned.

Most people do not find out about this until their return is being prepared. By then, the planning window has already closed.

What New York Costs Businesses Specifically

The combined corporate tax rate for business activity in New York City reaches 17.44%. That is the highest combined corporate tax rate in the country. It layers the state corporate franchise tax, the New York City business corporation tax, and an MTA surcharge on top of each other simultaneously. Three layers of corporate taxation before you even factor in property taxes, sales taxes, and the payroll mobility tax.

That payroll mobility tax deserves its own moment. It is a tax that businesses pay simply for having employees who work in the MTA region. Not tied to profit. Not tied to revenue. It applies because your employees take the subway. Collections on this tax more than doubled between 2022 and 2026, going from $1.8 billion to $4.7 billion. That growth did not come from new businesses moving in. It came from the rate going up on the ones already there.

Beyond the Tax Bill

The tax bill is only part of what New York charges you to operate there. Small business operating costs in New York rank among the nine most expensive in the country. Insurance premiums run 15% above the national average. Commercial electricity costs run 47% above the national average. Litigation and claim costs per household sit 67% above the national average.

In my experience working with clients across many states, New York is the only place where the non-tax costs of doing business are themselves a meaningful reason to reconsider the location. The tax environment amplifies a cost structure that is already heavy before you file a single return.

The Complexity Nobody Talks About

New York’s tax system is not just expensive. It is deliberately difficult to navigate in ways that cost money beyond the taxes themselves.

Market-based sourcing rules determine how much of your business income gets allocated to New York. If your customers are in New York, the state wants a piece of the revenue regardless of where you are physically located. For businesses selling services or software nationally, this creates a tax obligation to New York even without a physical presence there. Many business owners discover this exposure years after the fact, when the state comes looking for what it believes it is owed.

New York also decouples from certain federal tax provisions in ways that require entirely separate state-level calculations. Businesses that assume their federal return translates cleanly to the state side regularly find that assumption expensive. The system is structured in a way that rewards people who know exactly what they are doing and penalizes everyone else.

The Exit Problem

Leaving New York is a process, not an event. The state applies a rigorous standard when evaluating whether someone has truly changed their domicile. It looks at where you keep your most personal belongings, where your primary business relationships exist, where you spend the majority of your time, where your social and family connections are centered, and where you conduct your most significant activities. Miss on any of those factors and New York will assert that you are still a resident, still subject to full state income tax, regardless of where you moved.“

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