For the 12th consecutive year, New York has landed at the very bottom of the American Legislative Exchange Council’s (ALEC) “Rich States, Poor States” economic outlook rankings. The report, released Tuesday, ranks all 50 states based on 15 factors related to taxation, regulation, labor costs, and economic policy.
New York placed 50th in economic outlook and 31st in economic performance. The Empire State received the lowest possible ranking for both top marginal personal income tax and corporate income tax rates. ALEC’s report points to these burdens, along with the state’s high property taxes, costly labor mandates, and extensive regulation, as the primary reasons residents and businesses are fleeing the state.
The state’s property tax ranking stood at 47th, and its sales tax ranking came in at 28th. New York’s $15 minimum wage—among the highest in the nation—contributed to a 47th-place finish for minimum wage costs. The state also ranked 47th in average workers’ compensation costs, currently at $2.15 per $100 of payroll.
Additionally, New York continues to penalize business and personal wealth with its estate tax, and lacks right-to-work protections that are standard in more business-friendly states. The report notes the state maintains a bloated public workforce with 602 public employees per 100,000 residents—ranking 44th nationally.
This year’s findings again raise alarms about New York’s long-term economic viability. The authors warn that New York City’s role as the nation’s business capital is eroding, citing Texas as a rising financial hub. Major firms and financial institutions have begun relocating to states with lower taxes and friendlier business environments.
The ALEC report’s broader message is clear: Americans are leaving states like New York, New Jersey, and California in search of lower taxes and greater economic freedom.
