With Tax Day approaching, new research shows that while taxes remain a major concern, most Americans are currently more focused on the broader cost of living. According to WalletHub’s 2026 Taxpayer Survey, 78% of Americans say they are more worried about affordability than taxes right now.
At the same time, WalletHub’s annual report on the States with the Highest and Lowest Tax Rates reveals that New York residents face the heaviest overall state and local tax burden in the nation.
New York Ranks 50th for Overall Tax Burden
In WalletHub’s 2026 rankings, New York ranked 50th overall, indicating the highest effective state and local tax rate in the country.
New York’s rankings include:
- 50th for Overall Effective State and Local Tax Rate
- 49th for Income Tax
- 46th for Real Estate Tax
- 23rd for Sales and Excise Taxes
The data underscores the significant tax burden New Yorkers face compared to residents in other states. According to WalletHub Analyst Chip Lupo, living in the right state can ease the stress of tax time, as taxpayers in the least expensive states pay less than half as much as those in the most expensive states.
Americans Feel the Strain
WalletHub’s 2026 Taxpayer Survey highlights growing frustration with the tax system:
- 66% of Americans believe their current tax rate is too high.
- 95% think filing taxes should be free.
- More than four in five Americans believe people should budget throughout the year to afford tax payments.
The findings reflect dissatisfaction with tax burdens and a desire for reform in how Americans file and pay taxes.
Should Taxes Influence Where You Live
Experts say tax burdens are often overlooked when people decide where to live, but they should be considered.
Dr. Ron Cook, Professor Emeritus at Rider University, explains that while many people consider state-level income and sales taxes, they frequently underestimate the impact of local taxes such as property taxes, school levies, municipal income taxes, and other localized assessments.
These taxes can add up, especially for homeowners. Since the median tenure for homeowners is about 12 years, roughly three times longer than the median tenure at a current job, local tax structures can have long-term financial implications.
However, taxes are only one factor. Commute times, school quality, job opportunities, and lifestyle preferences often influence relocation decisions.
Navigating Tax Season in 2026
To help taxpayers manage the stress of tax season, WalletHub has released several resources, including:
- What to Do if You Can’t Pay
- Pros and Cons of Paying with Credit
- Tax Scams and Tips for Avoiding Them
- Last Minute Tax Tips
- Property Taxes by State
These tools aim to help Americans better understand their obligations and avoid common mistakes.
Affordability Remains the Bigger Picture
While New York’s tax burden stands out nationally, the broader theme of WalletHub’s survey is affordability. Rising housing costs, food prices, healthcare expenses, and general inflation continue to weigh heavily on households.
As Tax Day approaches, the data suggests that Americans are not just questioning how much they pay in taxes. They are questioning how much of their income they can keep overall.
For residents in high-tax states like New York, those concerns may feel especially significant.
