New York’s latest budget includes not only a large increase on the spending side of the ledger, but a $4.3 billion tax increase as well. The top marginal state income tax rate was raised from 8.82% to 10.9%. Coupled with the top income tax rate in New York City, the total state and local income tax rate on high incomes is over 14.7%, the highest state and local combination in the country. This study examines the impact of the tax increase on New York state’s competitiveness vis-à-vis other states, and the resulting net domestic outmigration.