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New York
Tax Burden Comparison (Your Current State vs. New State)
Moving from Illinois to New York would RAISE your total state and local tax burden from 12.9% of income to 15.9% of income — an increase of +3.0 pts. On a $100K household budget, that is roughly $3000 more per year in combined state and local taxes.
Income Tax Changes (Top Rate & Structure)
New York top marginal income tax rate is 10.9%, versus 4.95% in Illinois. Compare across your expected income bracket — top rates kick in at different thresholds in each state.
Sales Tax Changes (State & Local Combined)
New York state sales tax is 4.00%. With average local add-ons, the combined rate is 8.53%. This applies to most retail purchases but rules on groceries, prescriptions, and services vary.
Property Tax Changes (Median Effective Rate)
New York median effective property tax rate is 1.64% of home value. On a $400,000 home, that is roughly $6,560/year. Property tax typically funds schools, municipalities, and county services — rates vary sharply within a state by school district.
Estate & Inheritance Tax (planning for heirs)
New York imposes a state estate tax with a threshold of $7.16M (2025). Estates above this threshold pay state-level tax in addition to federal. No state inheritance tax applies.
Retirement Income Treatment (Social Security, Pensions, 401k)
In New York: Social Security is not taxed. Pensions and 401(k)/IRA withdrawals are partially taxed.
Capital Gains Treatment
New York capital gains treatment: Taxed as regular income up to 10.9% state + NYC 3.876% for residents. Compare to federal long-term capital gains rates (0%, 15%, or 20%) — some states offer preferential treatment for long-term holdings, while others tax capital gains as ordinary income.
Gas Tax Changes
New York gas tax is 41.0¢/gal — 6.0¢/gal lower than Illinois's 47.0¢/gal. For a 15,000 mile/year driver getting 25 mpg, each 1¢/gal of gas tax = about $6/year.
Local Income Tax (cities/counties)
New York allows local income, occupational, or earnings taxes. NYC imposes 3.078%-3.876% on residents (top combined 14.776%). Yonkers imposes 1.61% resident surcharge. Metropolitan Commuter Mobility Tax on employers. These are often overlooked but can add 1–3% to your effective rate.
Establishing Residency & Domicile Rules
New York residency rules: Strict 183-day rule + permanent abode = statutory resident. Most aggressive residency audits in the country for domicile changes. To establish residency for tax purposes, typical steps include: update driver's license and vehicle registration, register to vote, file a homestead declaration, close home-state bank accounts where possible, and spend clearly more than 183 days in your new state. If your former state is aggressive (e.g., CA, NY, NJ, OR), keep documentation of every day spent in each state.
Recent Tax Law Changes
New York recent tax law changes: Estate tax 'cliff' remains (estates over 105% of threshold taxed on full amount, no credit). Top rates extended through 2027.
Official State Tax Source
For the most current tax information in New York, visit the official source at https://www.tax.ny.gov/. Tax laws change annually; verify rates and rules before making a permanent move. Consult a CPA for advice specific to your situation.
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This guide compares total state and local tax burdens for a typical household and is general guidance only — not tax, legal, or financial advice. Individual tax liability depends on income level, filing status, property value, retirement status, and more. Before making a permanent move, consult a CPA or tax attorney. Tax burden figures draw on Tax Foundation, WalletHub, Kiplinger, and official state revenue sources using 2024–2025 data where available.