New York Among Top 10 Worst States for Low-Income Earners

New York is officially among the worst places in America for impoverished people to work and live because of this very obvious reason.

Worst State to Be Poor

A new report from WalletHub determined the best and worst states to be rich or poor. The study compared all 50 states and Washington D.C. based off state-specific tax burdens on residents at three income levels.

The survey determined the tax friendliness on individuals who make $25,000 a year, $50,000 a year, and $150,000 a year per state. Ths study drew its data from the from the Institute on Taxation & Economic Policy's 2024 report.

The point of the research was to determine the states where people will save them the most money on taxes. The report was inspired by data suggesting low- and middle-income families expected to pay higher effective tax rates than the wealthy.

In the end, New York scored poorly across the board no matter the tax bracket.

Worst State to be Rich, Poor, and Middle Class

New York's taxes make the Empire State extremely unfriendly to all residents, no matter their financial standing.

The state was ranked 9th worst among states for low-income earners, second-worst for those earning a medium income, and worst for those with a high income. Breaking down the tax burden per class, low-income earners lose about 11.5% of their income to taxes alone, while middle-income residents lose 12.58 percent. and high income earners shed 13.36 percent.

On the last finding, it was found Alaska's tax burden on the wealthy is three-times better than that of New York's. That said, Alaska was determined to be the best state for individuals of all incomes, with the lowest overall tax burden.

Why This Is Not Great for New York

New York is among the most populous states in America, but it is also losing a lot of residents. Since 2020, the Census Bureau said the Empire State lost roughly 884,000 residents to other states.

Per the Empire Center:

As a percentage of its 2022 population, New York’s net domestic migration loss of 1.1 percent last year was larger than any state’s; in absolute terms, it was exceeded only by California’s net outflow of 338,371 people.

Between 2022 and 2023, New York shed 101,984 residents, making it the state that suffered the greatest loss in population.

Those fleeing New York cite the state's unfriendly taxes and high cost of living among the leading cause for the move.

With New York's taxes continuing to rise alongside the cost of living, residents are finding themselves losing more and more of their disposable income. A recent study from CardRates.com determined 3 out of 4 New York residents are maxed out on stress due to their financial situations.

Read More: Massive Amount of New Yorkers Reaching "Stress Tipping Point"

It seems that until New York reigns in its taxes and reduces the financial burden upon its residents, the state will continue to experience severe population declines in the years to come.

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