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Today, the Tax Foundation (an independent tax policy think tank) released its 2022 State Business Tax Climate Index. The report compares all fifty states on various tax policies, then ranks their overall business tax climate. New York ranked below every state except New Jersey.

NY's rank in the State Business Tax Climate Index

The poor ranking comes as no surprise. New York has oscillated between 48-50 for over ten years.  After enacting new tax increases this year, New York dropped from 48^th to 49^th.

The index assesses each state’s Corporate Tax, Individual Income Tax, Sales Tax, Property Tax, and Unemployment Insurance Tax. Notably, New York ranked 50^th – dead last – in Individual Income Tax.

It is also notable that New York ranked 36^th for Unemployment Insurance taxes. Because NYS incurred billions in federal debt to keep solvent its UI fund during the pandemic, New York employers are about to face significant UI rate increases, meaning this ranking will likely worsen. The BNP has repeatedly urged Governor Hochul to take action to prevent these increases.

The full report is available here.

The BNP continues to advocate for tax policy that improves our region’s business climate. To learn how, register for our 2022 Advocacy Agenda Rollout on January 13. Tickets are available here.