ATRA says New York, California, Colorado and Illinois impose highest tort taxes

The American Tort Reform Association (ATRA) has announced on the social media platform X that excessive litigation imposes a significant financial burden on American families. The organization highlighted states with the highest tort taxes and called for increased awareness among policymakers and citizens.

According to ATRA's post, the average American family incurs an annual cost of $5,215 due to excessive litigation, a hidden burden termed as the "tort tax." The association explained that this cost arises from lawsuit abuse, including inflated settlements, excessive damage awards, and systemic inefficiencies. These factors ultimately increase consumer prices and place additional strain on businesses. ATRA emphasized the importance of raising awareness of these figures for policymakers, business leaders, and citizens seeking meaningful reform.

Per ATRA’s 2025 Legislative HeatCheck report, New York leads the nation with tort costs reaching $2,534.85 per person. This is followed by California at $2,458.33, Colorado at $1,982.84, and Illinois at $1,919.28—all ranking among the highest in the country. These states have been labeled by ATRA as "Lawsuit Infernos" (New York, Illinois, Colorado) or under "Heat Watch" (California), indicating litigation environments that significantly increase financial burdens on residents. These statistics provide empirical support for ATRA’s advocacy for legal reform.

The Legislative HeatCheck data corresponds with ATRA’s broader analysis in its annual Judicial Hellholes reports. These reports identify jurisdictions prone to forum shopping, mass tort filings, and litigation-friendly verdicts. ATRA asserts that high tort taxes and litigation climates in these states deter business investment and impede economic growth. The convergence of these insights bolsters the case for state-level reforms aimed at reducing frivolous lawsuits and restoring balance to civil justice systems.

According to its official website, ATRA is a national nonprofit advocacy group focused on reshaping the civil justice system for fairness, accountability, and efficiency. The organization leads efforts to limit lawsuit abuse, cap excessive damages, and enhance transparency while supporting its advocacy with data-driven tools like the Legislative HeatCheck and Judicial Hellholes reports. It collaborates with legislators, legal professionals, and the public to mitigate the economic and social impacts of costly litigation.