1. New York
And the winner for the worst state for taxes is … the Empire State. It’s the worst state in the country when it comes to individual income taxes, likely due to its high top marginal tax rate of 8.82 percent. It ranks 45th for both unemployment insurance taxes and property taxes, and 38th for sales taxes. (It also has the highest tobacco taxes in the country – $4.35 per pack of cigarettes.) Its best score was 23rd for corporate tax rates. New York was also among the top five outbound states in the United Van Lines migration study.