Both New York and California rank among America's highest-tax states, but they differ at the top. California's maximum 13.3% rate exceeds New York's 10.9%, creating savings for high earners who choose NY. However, NYC residents face an additional 3.876% city tax, potentially making NYC more expensive than California.

By CountryTaxCalc Research Team

Last Updated: March 2026

The Big Picture

🗽 New York

10.9%

Plus NYC Tax

9 brackets from 4% to 10.9%, plus NYC residents pay up to 3.876% additional

🌴 California

13.3%

Highest in Nation

9 progressive brackets from 1% to 13.3%, plus 1% mental health surtax over $1M

Typical Annual Savings

At $100,000 income:

$330

That is $28/month back in your pocket!

Tax Savings by Income Level

IncomeNY TaxCA TaxSavings10-Year
$50,000 $2,391$1,711-$680 (CA cheaper)-$6,800
$75,000 $3,766$3,349-$417 (CA cheaper)-$4,170
$100,000 $5,432$5,762$330 (NY cheaper)$3,300
$150,000 $8,782$10,991$2,209 (NY cheaper)$22,090
$250,000 $15,632$22,471$6,839 (NY cheaper)$68,390
$500,000 $36,857$50,243$13,386 (NY cheaper)$133,860

New York Pros and Cons

✅ Pros

  • Lower top tax rate (10.9% vs 13.3%)
  • Financial capital (Wall Street)
  • World-class arts and culture
  • Public transit in NYC

❌ Cons

  • NYC adds up to 3.876% city tax
  • Very high property taxes (1.4%)
  • Extreme cost of living (NYC)
  • Harsh winters

California Pros and Cons

✅ Pros

  • Perfect weather year-round
  • Tech hub (Silicon Valley)
  • Lower property taxes (0.74%)
  • Beach and mountain access

❌ Cons

  • Highest state income tax (13.3%)
  • Extreme housing costs
  • Traffic congestion
  • 1% mental health surtax over $1M
💡

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Frequently Asked Questions

Q: Which state has higher income tax, New York or California?

California has the higher maximum rate at 13.3% vs New York's 10.9%. However, NYC residents pay an additional city tax of up to 3.876%, which can make NYC total taxes higher than California for some earners.

Q: At what income is New York cheaper than California?

New York becomes cheaper than California around $85,000-$90,000 in annual income (excluding NYC residents). Below this threshold, California's lower rates in middle brackets make it slightly cheaper. Above $100K, NY offers increasing savings.

Q: Does NYC have its own income tax?

Yes, New York City residents pay an additional city income tax of 3.078% to 3.876% on top of state tax. Combined with NY state tax (10.9%), NYC residents can face total rates near 14.8% - higher than California's 13.3%.

Q: How do property taxes compare between NY and CA?

New York averages 1.4% property tax while California averages 0.74%. On a $750K home: NY costs ~$10,500/year vs CA ~$5,550/year. California's Prop 13 limits annual increases to 2%.

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