New York’s combined state and local sales tax rate is the seventh highest in the nation, according to a new report from the Tax Foundation.

Because different states can have separate local sales tax rates and tax sharing arrangements, the D.C.-based Tax Foundation uses a formula to establish an average rate for each state.  Although the combined rate in New York ranges from 7 to 8.75 percent depending on the county, the Tax Foundation pegs the statewide average at at 8.48 percent.  Based on the foundation’s rankings, here’s how New York’s sales tax stacks up against those of neighboring states:

screen-shot-2012-07-31-at-12950-pm-400x226-1034720

Of course, the sales tax rate alone is not the only indicator of the tax burden. The tax base — how broadly the tax applies to different goods and services, such as groceries and clothing — is also important. According to figures cited in the recent report of the State Budget Crisis Task Force, New York’s sales tax breadth was 26.2 percent of personal income as of 2010, which was narrower than the national norm of 34.5 percent.  New Jersey had an even narrower base, estimated at 25.3 percent of personal income.

About the Author

E.J. McMahon

Edmund J. McMahon is Empire Center's founder and a senior fellow.

Read more by E.J. McMahon

You may also like

Budget Deal Slows Medicaid Growth But Plants Seeds for Future Spending

The growth of New York's Medicaid spending is projected to slow but not stop as Governor Hochul and the Legislature effectively split their differences over health care in the newly enacted state budget. Read More

Albany Lawmakers Push a $4 Billion Tax on Health Insurance

Legislative leaders are proposing an additional $4 billion tax on health insurance plans in the upcoming state budget – but withholding specifics of how it would work. Read More

As migrants flow to NY, so does red ink 

The influx of foreign migrants to New York could cost the state $4.5 billion more than expected next year, Governor Hochul today warned.  Read More

The Bill Arrives: NY Faces $9B Budget Gap Next Year 

New York’s outyear budget gaps, the shortfall between planned state expenses and state tax receipts over the next three years, has exploded to more than $36 billion, just-released documents show.  Read More

NY school spending again led US, hitting all-time high in 2020-21

Public elementary and secondary school spending in New York rose to $26,571 per pupil in 2020-21, according to the latest Census Bureau data Read More

A Tale of Two Levies

New York school districts are getting record levels of state aid. But how many are using it to cut taxes? Read More

Albany’s Belated Budget Binge 

State lawmakers have begun passing the bills necessary to implement the state budget for the fiscal year that began April 1. Read More

Courts set a limit on NY’s tax reach

Just in time for tax season, New York State's tax agency just lost a major legal challenge to its policy of pursuing maximum income tax payments from wealthy vacation homeowners—even when they live elsewhere. Read More