Who Really Pays New York’s Bills?

What would happen if New York’s highest earners continued leaving the state?

Supporters of “tax the rich” insist these taxpayers won’t leave. But the data tells us we should take that possibility seriously and have an answer ready. Whether or not you believe high-income earners should pay more, we cannot ignore the fact that New York’s finances are tied to the revenues high earners provide. Without them, Albany will no longer have a fallback to avoid addressing its spending problem.

New York’s tax base is heavily concentrated among a small group of high-income earners. That means decisions made by a relatively small number of taxpayers can have a major impact on the state’s finances. The top 1% of earners account for about 52.8% of all state personal income tax collections. The top 200 taxpayers alone accounted for 7.7% of collections in tax year 2024. It’s concerning, then, that New York’s share of high-income earners is shrinking.

New York’s share of the country’s millionaires dropped from 12.7% in 2010 to just 8.7% in 2022. While our state used to have the second-highest share of U.S. millionaires, we now place fourth behind California, Florida and Texas. In 2024, New York experienced a net loss of 13,662 taxpayers, with approximately 1 in every 100 resident filers earning more than $500,000 leaving the state on a net basis. Over the past decade, we have seen a net loss of 351,447 tax filers.

The calls to “tax the rich” are based on a false premise that high-income earners are not already shouldering a significant share of New York’s tax burden. We have one of the most progressive income tax systems in the country. State income tax rates reach as high as 10.9%, and New York City residents incur additional local income taxes, bringing the combined top rate to nearly 15% for some.

We all benefit from keeping taxpayers in New York. Families, entrepreneurs and employers create jobs, support local businesses, invest in our communities and strengthen the tax base that funds essential services. Chasing them away helps no one. If there were ever an example of shooting ourselves in the foot, this is it.

Taxing the rich is being sold as the cure for New York’s overspending problem. But if higher taxes drive high earners out of the state, those exorbitant bills will still come due with fewer taxpayers left to help pay them. The real solution is to slow the excessive, unsustainable spending. New York already relies heavily on taxes from its highest earners, and New Yorkers can agree our state has become too expensive and overtaxed for all of us. Instead of demanding taxpayers do more, we should be demanding Albany do more with less.

If you have any questions or comments on this or any other state issue, or if you would like to be added to my mailing list or receive my newsletter, please contact my office. My office can be reached by mail at 19 Canalview Mall, Fulton, NY 13069 and by email at [email protected]. You may also find me, Assemblyman Will Barclay, on Facebook or X at @WillABarclay.