New York’s shrinking share of the nation’s millionaires cost the state an estimated $10.7 billion in personal income tax revenue in 2022, according to a new analysis from the Citizens Budget Commission.
The study found that New York was home to 12.7% of America’s millionaires in 2010. By 2022, that share had fallen to 8.7%, the largest decline of any state, explained The New York Post.
The findings highlight New York’s dependence on its wealthiest residents, who account for an outsized share of state tax collections.
“In New York, the top 1% of earners pay about 45% of all state income taxes in any given year, so New York’s revenue is very reliant on high earners to stay in New York, and that has been a challenge in recent years,” economist Jared Walczak told the New York Post.
Critics of New York’s tax policies have long warned that repeated increases could encourage wealthy residents and businesses to relocate to lower-tax states. The commission’s analysis suggests that the departure of high earners has already created a substantial hole in the state budget.
The report comes as New York officials continue debating additional taxes on affluent residents.
Gov. Kathy Hochul has resisted some proposals to raise income taxes on the state’s highest earners, but she has expressed openness to a pied-à-terre tax on expensive secondary residences owned by nonresidents.
New York City Mayor Zohran Mamdani has also endorsed the proposal, arguing that wealthy property owners should contribute more, end results be damned.
“The wealthiest can do a little bit more to ensure that everyone can afford to live here,” he told reporters. “And the little bit more—and we’re talking about the pied-à-terre tax—it’s a tax on non-resident New Yorkers’ secondary homes that are worth more than $5 million. I think that that’s common sense, and most New Yorkers feel the same way.”
🚨WATCH: New York City Mayor Zohran Mamdani doubles down on taxing the rich when asked about millionaires fleeing New York, which is eating into the state's tax revenue. pic.twitter.com/BupiFlC8wS
— Off The Press (@OffThePress1) July 13, 2026
“I look forward to continuing to advance the vision of our city.”
Walczak warned that further tax increases could prompt additional departures.
“New York isn’t done raising taxes, and … it won’t be surprising if high-earner taxpayers choose to relocate.”
New York also ranks last in the Tax Foundation’s state tax competitiveness index, which evaluates states based on their income, corporate, sales, property and unemployment insurance taxes.
Tax Foundation analyst Andrey Yushkov said the state risks losing more residents and businesses unless lawmakers change course.
“Without reforming the tax structure, New York won’t be competitive for attracting population and business,” he told the Post. “Wall Street is the golden goose. But for how long?”
Supporters of higher taxes argue that wealthy residents can afford to contribute more toward public services, but in reality the goal is less about paying for more services and more about punishing the wealthy. Opponents contend that the city has reached a point where additional increases could reduce revenue by accelerating the departure of the taxpayers who finance much of the state government.
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