New York Charges the Most for This Tax Rate in the Country

A tax that all Americans have to pay costs a lot more in New York than other states. Can you guess which one?

States with Highest Tax Rate

There are certain taxes all Americans have to pay, such as payroll taxes, state and local sales taxes, excise taxes and more. For those living in New York State, paychecks here lose the most amount of money to this particular tax.

WalletHub conducted a survey of all 50 states to determine which had the highest property tax rate. Surprising hardly any New Yorkers, the Empire State had the sixth highest of all.

For those who think they don't have to fork over money to Uncle Sam for this particular fee are greatly mistaken. Said WalletHub:

We all pay property taxes, whether directly or indirectly, as they impact the rent we pay as well as the finances of state and local governments.

The survey found that New York is among the handful of states that charge an arm and a leg for property taxes.

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For those curious, or seriously considering packing everything up and moving, the states with the lowest property taxes were Hawaii, Alabama, and Colorado. They respectively rounded out the top 3.

Nevada and South Carolina came in fourth and fifth place.

The Bottom of the List

New York's property tax rate came in 46th worst overall, only to be bested by Vermont, New Hampshire, Connecticut, Illinois, and last-place finisher New Jersey.

New York's overall real estate tax rate stands at 1.64%. Additionally, the annual taxes that an average home valued at $281,900 would be $4,626.

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The median home value in New York State is roughly $384,000 and that means the annual taxes for a home around that price sits at $6,372.

Once upon a time, homeowners paid a lot less in property taxes. According to WalletHub, New York only started to see the price tag increase around 2014. Before then, taxes in the Empire State were considered to be somewhat in the middle of the pack.

Amazing to see how much has changed in the past decade or so.

A Small Consolation Prize...

WalletHub also weighed another annoying tax that a majority of the nation has to pay: vehicle property taxes. As a Connecticut native, I know full well how annoying this annual tax burden is because it's actually one of the highest in the nation.

You can have a car that's nearly a decade old and Connecticut will still demand hundreds from you. Then again, the state has yet to reinstate tolls, so lawmakers there really enjoy coming up with new ways to bleed their residents dry.

Conversely, New York lawmakers don't have this particular tax in the books. Maybe because the state does make a significant amount of money on tolls and taxing motorists further would send them over the edge.

New York is one of 25 states that do not charge a vehicle property tax, which you all really should be thankful about because, as I said earlier, this tax is highly annoying.

If you drove a Toyota Camry LE in Connecticut, which is valued at around $26,000, the state would demand you pay $554 to Uncle Sam because... reasons? I still don't understand why Connecticut, or any other state for the matter, charges people to drive cars when they are already paying a boatload on gas taxes.

In New York, the state mandates motorists to pay a fee upon registering a vehicle.

However, things could change. Do you think our lawmakers would dare try to introduce another tax on residents? Let us know in the comments below.

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