Which States Have the Highest and Lowest Taxes?
April 8, 2014 Leave a comment
Taxes are something that everyone complains about, regardless of what party you join. It’s something you have to pay, yet you don’t really have a say as to what they go towards. Taxes vary depending on what state you live in, and some tax rates are even higher or lower in different cities.
During the 2011 tax season, Americans paid 9.8% of their income in state and local taxes — on top of taxes collected by the federal government. This number, according to a report by the Tax Foundation, was up from 9.3% in 2000.
For the most part, taxes are higher on the East Coast, and lower for residents in Midwestern and Southern states. Residents in New Jersey and New York paid more than 12% of their income in state and local taxes, while Wyoming residents paid less than 7%.
To identify the states with the highest and lowest tax burdens, 24/7 Wall St. reviewed state and local tax burden as a share of state residents’ income, as provided by the Tax Foundation.
The states with the highest include Wisconsin, California, Connecticut, New Jersey, and New York. New York had the highest state and local tax rate in fiscal 2011. On average, 12.6% of residents’ income went to either state or local taxes. The state charges residents with an individual income tax rate of 6.85% if they earned more than $205,850 a year, and a rate of 8.82% if they earned more than $1,029,250 a year.
The states with the lowest tax rates include Louisiana, Texas, South Dakota, Alaska, and Wyoming. In fiscal 2012, Wyoming only collected $2.6 billion in taxes, which is the lowest in the United States. Like several other states with low tax burdens, Wyoming has no individual income tax.
Do you live in a state with a really low or really high tax rate?