New Tax Law Helps NY Less Than Almost Every Other State: Study

NEW YORK, NY — New York officials warned the tax bill Congress passed last year wouldn't help the state — and they were right, according to a WalletHub study published Wednesday. New York ranks 49th among the 50 states and the District of Columbia on the personal finance website's ranking of who benefits most from the changes to the federal tax law that took effect this year.

That means only two states — Connecticut and West Virginia — get a smaller benefit from the changes that Republican lawmakers pushed through last year.

The bill helps well-off New Yorkers least, WalletHub found. Residents making $150,000 a year get the second-smallest benefit among their peers nationwide, the ranking shows. Only rich Arizona taxpayers get a smaller benefit.

Low- and middle-income New Yorkers fare slightly better, but still don't get much help from the new law, the study shows. The state ranks 32nd in gains for residents making $25,000 a year and 43rd in gains for middle-class residents making $50,000 a year, WalletHub found.

The new tax law includes several changes that Republicans said would help businesses and middle-class taxpayers, but that Democrats and others argued would disproportionately benefit the very rich.

One of the provisions expected to hit New York hardest is a $10,000 limit on income tax deductions for state and local taxes. The state's income tax, as well as local property and other taxes, are higher than many other states, meaning New Yorkers will get smaller writeoffs when they file their tax returns next year.

Alaska taxpayers will get the most help from the new tax law, according to WalletHub's study. The benefit for middle-income families is higher there than in any other state, while gains for rich families rank eighth in the nation and benefits for low-income families rank 44th.

Alabama, Tennessee, the District of Columbia and Nevada round out the top five states benefitting the most from the new tax law.

See WalletHub's full ranking below, and check out the study for more details on how the states stacked up.

1. Alaska
2. Alabama
3. Tennessee
4. District of Columbia
5.Nevada
6. Arkansas
7. Ohio
8. Texas
9. Delaware
10. South Dakota
11. New Mexico
12. Oklahoma
13. Wyoming
14. Washington
15. Kansas
16. Nebraska
17. Hawaii
18. Illinois
19. New Hampshire
20. North Dakota
21. Florida
22. Indiana
23. Colorado
24. North Carolina
25. Idaho
26. Utah
27. Louisiana
28. California
29. Montana
30. Vermont
31. Minnesota
32. Rhode Island
33. South Carolina
34. Iowa
35. Michigan
36. Missouri
37. Wisconsin
38. Kentucky
39. Massachusetts
40. Maine
41. Georgia
42. Pennsylvania
43. Oregon
44. Virginia
45. Mississippi
46. Arizona
47. New Jersey
48. Maryland
49. New York
50. Connecticut
51. West Virginia

(Lead image: Photo by James R. Martin/Shutterstock.com)