New York City Taxpayers Continue to Contribute More to State Revenues than They Receive Back in Services, CUNY and New School Study Finds
A joint study analyzing taxes and expenditures by the CUNY Institute for State & Local Governance and the Center for New York City Affairs at The New School also found that NYC’s share of the state GDP has grown by nearly 10% since 2010.
December 17, 2025
Media Contact
CUNY ISLG: Carla Sinclair, Senior Communications Associate, carla.sinclair@islg.cuny.edu
CNYCA: George Sweeting, Senior Fellow Fiscal Policy, sweeting@newschool.edu
New York, New York – This week, a new joint study between the Institute for State & Local Governance at the City University of New York (CUNY ISLG) and the Center for New York City Affairs at The New School (CNYCA) found that New York City taxpayers contribute more than half of the state’s revenue, income taxes and gross domestic product (GDP).
Understanding the relationship between New York State revenues and expenditures as they pertain to New York City can aid policymakers as they consider the historical and policy roots of this relationship, as well as grapple with the many factors that account for budget decisions. The last report assessing these contributions was released in 2010.
See the executive summary and full report here.
This report estimates the “fiscal flow” between the city and state using data from the New York State Fiscal Year 2021-2022 and Census data to estimate taxpayers’ “place of work” as well as “place of residence;” this better reflects economic activity for commuters in suburbs and exurbs.
The study finds that:
New York City contributed 54.5%, or $68.8 billion, of state revenues whereas the rest of the state contributed 45%, or $57.5 billion. When place of residence is used, New York City contributed 46.7% of total revenue
New York City contributes 58.7% of New York State’s $70.7 billion income taxes.
New York City received 40.5%, or $47.6 billion, of State Operating Expenditures, whereas the rest of the state received $69.7 billion, or 59.5%
New York City’s portion of the state gross domestic product (GDP) has grown by nearly 10% since 2010, the last time an assessment of this kind was done. It now sits at 60%, compared to 54.3%
“Following a decade of economic growth in New York City and the enactment of high-earner income tax increases in 2021, this report provides an updated and comprehensive picture of the fiscal flow between New York City and New York State.”
“Following a decade of economic growth in New York City and the enactment of high-earner income tax increases in 2021, this report provides an updated and comprehensive picture of the fiscal flow between New York City and New York State,” said Taylor Swabb, Policy Project Director at CUNY ISLG. “By examining both where income is earned and where taxpayers reside, the analysis accurately reflects the state’s economy, including the role of commuters. With the last assessment conducted in 2010, these findings offer timely context for policymakers seeking to understand how economic activity, revenues, and state expenditures are distributed today as they make future budget decisions.”
“It is essential that New Yorkers have a good sense of where the state resources currently come from and how they are distributed.”
“At a time when New York is threatened with fiscal attacks from Washington that will likely require new revenue at the state and local level to avoid cuts to critical human service and education programs, it is essential that New Yorkers have a good sense of where the state resources currently come from and how they are distributed,” said George Sweeting, a Senior Fellow at the Center for New York City Affairs. “This report provides that analysis for the fiscal flow between New York City and the rest of the state.”
“These findings offer timely context for policymakers seeking to understand how economic activity, revenues, and state expenditures are distributed today as they make future budget decisions.”
“For those who have worked in both state and city budgeting, they know that having a clear, shared understanding of how dollars flow between New York City and New York State is essential,” said Marc Shaw, Senior Advisor at CUNY ISLG. “This study updates the fiscal framework using current data and methodologies that reflect today’s economy. By revisiting these questions for the first time in more than a decade, the report establishes a baseline that can inform budget conversations and intergovernmental decisions going forward.”
This research addresses how much New York City contributes to New York State revenues based on economic activity. On New York State spending, we have estimated the allocations to New York City, but we have not assessed the policy reasons or evaluated the need for the redistribution of the revenues to different regions and communities across the State. That analysis is a subject of future research.