Study: New York has worst tax code in U.S.
Study: NY ranks last in tax competitiveness index because of high rates and a burdensome non-neutral residents.
A new study finds the state of New York has the worst tax code in the country.
The Tax Foundation recently released its 2025 State Tax Competitiveness Index. This evaluates how well states structure their tax systems according to the principles of sound tax policy – simplicity, transparency, neutrality, and stability.
New York state ranks 50th, out of the 50 states featured in the index.
The Tax Foundation pointed to several issues, including high rates and a burdensome, non-neutral tax structure.
It says the draw of New York City has been enough to attract and retain state residents, but taxes matter more than ever when it comes to migration.
The top states in the index were Wyoming, South Dakota, and Alaska.