New York vs California Taxes
Compare the total tax burden between New York (3.9% – 10.9%) and California (1% – 13.3%). Enter your income to see which state saves you more.
| Tax Component | New York | California |
|---|---|---|
| Federal Tax | $13,170 | $13,170 |
| State Tax | $4,860 | $5,055 |
| FICA | $7,650 | $7,650 |
| Total Tax | $25,680 | $25,875 |
| Take-Home | $74,320 | $74,125 |
| Effective Rate | 25.68% | 25.87% |
| Annual Difference | $195 less | $195 more |
The $195 difference is primarily because California has a progressive income tax with rates up to 13.3%, while New York has a progressive income tax with rates up to 10.9%. At your income level, California's marginal rate is 9.3% vs New York's 5.9%.
Why the difference
You'd pay $195/year ($16/month) more in California vs New York.
Tax structure
New York uses progressive brackets up to 10.9%, while California uses progressive brackets up to 13.3%.
Effective rate at your income
At $100,000, New York's effective state rate is 4.9% vs 5.1% in California — a 0.2 percentage point gap.
New York local taxes
New York City residents pay an additional 3.1-3.9% city income tax on top of state tax.
Tip: If you work in NYC, the city income tax significantly increases your burden. Living outside the city (e.g., New Jersey, Connecticut, or Westchester) can save 3-4% on city tax, but commuter taxes and higher property taxes may partially offset the savings.
Tip: California's progressive brackets mean your effective rate is much lower than 13.3% for most earners. At $100,000, the effective state rate is approximately 5.8%. Consider maximizing 401(k) contributions and HSA to reduce California-taxable income.
New York Total Tax
$25,68025.68% effective rate
California Total Tax
$25,87525.87% effective rate
Annual Savings
$195by living in New York
California vs New York: America's two tax heavyweights compared—and they're not as similar as you think
California and New York are the two states most associated with high taxes, and together they've lost more residents to domestic out-migration than any other states in the past decade—each shedding roughly 300,000-400,000 net residents per year. But lumping them together as equally "high-tax" misses important structural differences that matter enormously depending on your income level and lifestyle.
New York's top marginal rate is 10.9% at the state level, but New York City residents face an additional city income tax of up to 3.876%, creating a combined top rate near 14.8%—actually higher than California's 13.3% top rate. Outside NYC, however, New York's effective rates are considerably lower than California's for most income levels because New York's rate structure is more graduated. A non-NYC New Yorker earning $200,000 pays roughly $11,300 in state tax, while a Californian at the same income pays about $14,400. It's essentially a wash at that level.
Property taxes create the biggest divergence. New York's statewide effective rate of 1.55% is more than double California's 0.70%, and some New York suburbs (Westchester, Nassau, Suffolk counties) see effective rates above 2%. California's Proposition 13 keeps long-term homeowners' bills artificially low. Sales tax is roughly comparable: California at 7.25% base versus New York at 4% base, but both reach 8-10% with local additions. Both states have estate taxes, but New York's punitive "cliff" (estates exceeding the exemption by more than 5% get taxed on the full amount) makes it particularly dangerous for estates near the threshold.
Key Differences Beyond Income Tax
| Category | New York | California |
|---|---|---|
| Property Tax | Effective rate ~0.71%; Prop 13 limits increases to 2%/year; reassessment only upon sale | Effective rate ~1.40%; some suburbs above 2.5%; frequent reassessment; STAR program offers modest relief |
| City Income Tax | No city income taxes anywhere in the state | NYC residents pay additional 3.078%-3.876% city income tax; Yonkers levies a surcharge; no other cities have income tax |
| Sales Tax | Base rate 7.25%, combined up to 10.75%; highest base rate in the nation; groceries exempt | Base rate 4%, combined up to 8.875% in NYC; clothing under $110 exempt in NYC; groceries exempt |
| Estate Tax | No state estate tax | Estate tax with $7.16M exemption (2025) and punitive "cliff"—exceed by 5% and entire estate is taxed at rates up to 16% |
| Capital Gains | Capital gains taxed as ordinary income up to 13.3%; no special rate | Capital gains taxed as ordinary income up to 10.9% (+ NYC tax if applicable); no special rate |
Who Benefits from Moving?
NYC residents earning $300K+
A NYC resident earning $300,000 pays roughly $17,700 in state tax plus $10,500 in city tax, totaling $28,200. A Californian at the same income pays about $19,800 in state tax and $0 in city tax. New York City is about $8,400 more expensive. But moving upstate would drop the NY bill to about $17,700—actually cheaper than California.
Homeowners comparing coastal properties
A $1 million home in Westchester County (NY) faces roughly $18,000-$25,000 in annual property taxes. The same value home in Los Angeles County costs about $7,100 in property tax (assuming recent purchase at current rates). New York's property tax burden is the single biggest cost difference between the two states for homeowners.
High-net-worth individuals with estate planning concerns
California has no state estate tax. New York's estate tax with its cliff provision means an estate of $7.5M (just over 5% above the $7.16M 2025 exemption) gets taxed on the full $7.5M—not just the excess. This cliff can cost heirs $500,000+ that wouldn't exist in California. For estate planning alone, California is dramatically better.
Bottom line: At $150,000 income, California charges about $9,710 in state income tax versus New York's $8,290 outside New York City—so California costs roughly $1,400 more on the state line alone, and New York only overtakes it once New York City's own income tax is stacked on top.
Tax at Different Income Levels
| Income | New York Total Tax | California Total Tax | Annual Savings |
|---|---|---|---|
| $75,000 | $16,861 | $16,182 | Save $678 |
| $100,000 | $25,680 | $25,875 | +$195 |
| $150,000 | $44,500 | $45,914 | +$1,414 |
| $200,000 | $62,401 | $65,428 | +$3,027 |
Based on single filer, standard deduction, 2026 tax year. Includes federal income tax, state income tax, and FICA.
Why the difference
You'd pay $195/year ($16/month) more in California vs New York.
Tax structure
New York uses progressive brackets up to 10.9%, while California uses progressive brackets up to 13.3%.
Effective rate at your income
At $100,000, New York's effective state rate is 4.9% vs 5.1% in California — a 0.2 percentage point gap.
New York local taxes
New York City residents pay an additional 3.1-3.9% city income tax on top of state tax.
Tip: If you work in NYC, the city income tax significantly increases your burden. Living outside the city (e.g., New Jersey, Connecticut, or Westchester) can save 3-4% on city tax, but commuter taxes and higher property taxes may partially offset the savings.
Tip: California's progressive brackets mean your effective rate is much lower than 13.3% for most earners. At $100,000, the effective state rate is approximately 5.8%. Consider maximizing 401(k) contributions and HSA to reduce California-taxable income.
Understanding Each State
New York
New York's state income tax has progressive brackets reaching 10.9%. New York City residents pay an additional city income tax of 3.078-3.876%, making the combined state+city marginal rate up to 14.776% — the highest combined rate in the nation. The Yonkers surcharge adds another 16.75% of state tax for Yonkers residents.
Tip: If you work in NYC, the city income tax significantly increases your burden. Living outside the city (e.g., New Jersey, Connecticut, or Westchester) can save 3-4% on city tax, but commuter taxes and higher property taxes may partially offset the savings.
California
California has the highest top marginal state tax rate in the US at 13.3%, with progressive brackets starting at 1%. An additional 1% Mental Health Services Tax applies to incomes over $1 million. Despite high taxes, California's economy — tech, entertainment, agriculture — attracts top talent globally. Under OBBBA, the SALT deduction cap rose to $40,000 for 2025 and $40,400 for 2026 (half that if MFS), but is cut by 30 cents for every dollar of MAGI above $500,000 for 2025 ($505,000 for 2026), down to a $10,000 floor — so the highest-income California itemizers see only partial federal relief.
Tip: California's progressive brackets mean your effective rate is much lower than 13.3% for most earners. At $100,000, the effective state rate is approximately 5.8%. Consider maximizing 401(k) contributions and HSA to reduce California-taxable income.
Key Comparison Points
Income tax structure: New York has a progressive income tax (3.9% – 10.9%), while California has a progressive income tax (1% – 13.3%).
Beyond income tax: State tax comparisons should also consider property tax rates, sales tax, and cost of living. A state with no income tax may have higher property or sales taxes that offset the savings.
SALT deduction cap: Under OBBBA, the 2026 federal SALT cap is $40,400, phasing out above $505,000 MAGI toward a $10,000 floor. This limits the federal tax benefit of living in a high-tax state, so the gross state tax difference remains close to the net difference for most earners — especially high earners inside the phaseout.
Frequently asked questions
Is it cheaper to live in New York or California?
Based on income tax alone, New York has a lower tax burden. At $100K income, you'd save $195 annually in New York compared to California. However, total cost of living also depends on property taxes, sales taxes, and housing costs.
How much would I save moving from California to New York?
A single filer earning $100,000 would save approximately $195 per year in total taxes by living in New York instead of California. At $150,000 income, the savings change to $1,414 per year.
What is the income tax rate in New York?
New York has a progressive income tax with rates of 3.9% – 10.9%.
What is the income tax rate in California?
California has a progressive income tax with rates of 1% – 13.3%.