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These Are America's Most And Least "Taxing" States (And Everything Inbetween)
One of the most consistent debates emanating out of Washington in the past 6 years has been that dealing with income tax. Whether high, low, "fair" or "unfair", said discussions, however, focus solely on tax paid at the Federal level, and largely ignore that "other" key tax: state. Which is surprising, considering some states such as California demand a total contribution amounting to a third of the highest marginal Federal tax bracket, which could make some wonder if those bracing sea breezes are really worth it. But what about the other states? Here is the full breakdown of the states with the top income tax rates, those with the lowest, and all the states inbetween.
As Bloomberg reports citing Tax Foundation data, as of Jan. 1, nine states don't levy income tax on wages, and eight have a flat tax. Brackets in which taxes kick in differ by state, as do exemptions.
Here are the highest "taxing" states in the US:
- California 13.3%
- Hawaii 11%
- Oregon 9.9% (a, b)
- Minnesota 9.85%
- Iowa 8.98% (b)
- New Jersey 8.97% (a)
- Vermont 8.95% (tie)
- Washington, D.C. 8.95% (tie)
- New York 8.82% (a, c)
- Maine 7.95%
a) Local income taxes are excluded.
b) Allows "some or all federal income tax paid to be deducted from state taxable income," according to the Tax Foundation.
c) The Tax Foundation notes that New York has "'tax benefit recapture, by which many high-income taxpayers pay their top tax rate on all income, not just on amounts above the bracket threshold.”
And the lowest:
- Pennsylvania 3.07%* (a)
- North Dakota 3.22%
- Indiana 3.4%* (a)
- Michigan 4.25%* (a)
- Arizona 4.54%
- Colorado 4.63%* ** (d)
- Kansas 4.8% (a)
- New Mexico 4.9%
- Alabama 5% (a, b): tied with Illinois*, Mississippi, New Hampshire* (c) and Utah
*flat rate
**of federal adjusted gross income with modifications
a) Local income taxes are excluded.
b) Allows "some or all federal income tax paid to be deducted from state taxable income," according to the Tax Foundation.
c) Tax applies to interest and dividend income only.
(d) of federal taxable income
And all the other ones, sorted alpabetically:
Alabama has the lowest state and local property tax collections per person, though it's one of seven states that don’t provide a sales tax break for groceries. It doesn't give beer drinkers a break, either, imposing the nation’s third-highest beer excise tax, at $1.05 per gallon. Taxes get complicated for same-sex couples in Alabama. Because the state doesn't recognize their unions, couples must each file single state income tax returns and apportion their joint income according to a ratio.
At least one obsolete tax law remains on the books here -- a tax for Confederate veterans of the Civil War. The tax now supports the Confederate Memorial Park, which includes a museum.
Alaska gets significant income from corporate taxes, mostly from the oil-and-gas industry. The state collects high revenue per person -- $19,686 in 2012, according to the Tax Foundation -- without collecting income, state sales tax or inheritance tax. Alaska's average local sales tax rate is 1.69 percent.
Property taxes, however, at $2,076 per person, are relatively high. And while a full day on a fishing boat or oil rig will likely put many of the state’s residents in the mood for a cold one, Alaska’s beer excise tax is the second-highest in the nation, at $1.07 per gallon.
With a comparatively low income tax, Arizona relies heavily on other levies. It gets a little more than 70 percent of its state and local tax collections from property tax and general sales taxes. Still, its tax revenue is lower than other states' -- it collects $4,812 per capita (as of 2011), ranking 49th out of 50.
Arizona doesn't recognize the marriage of same-sex couples. The state instructs those who file joint federal returns to file state income tax returns as single filers and then requires an additional form to determine how to allocate joint income from the federal return.
Arkansas has the sixth-lowest state and local revenue per capita, according to the Tax Foundation. More than 60 percent of state and local tax collections come from general sales tax, individual income tax and corporate income tax. Arkansas does not recognize same-sex marriage and requires single returns from both members of same-sex couples.
Living in a place that's home to Hollywood, the Golden Gate Bridge, beaches and mountain ranges comes at a price, and this includes higher taxes. California’s top income tax rate is 12.3 percent for up to $1 million in income, and then jumps to 13.3 percent, the highest in the nation. The state’s sales tax rate (not including local sales taxes) is also the highest in the nation, as is the state gas tax rate, at 52.5 cents per gallon.
Tax season is a little easier here for same-sex married couples than in many other states. Since California recognizes same-sex marriage, couples don't have to use different or additional forms to determine how much state tax is due.
*There is an additional 1 percent tax on income over $1 million, bringing the top rate to 13.3 percent.
Of the 44 states that levy an individual income tax, Colorado's is sixth lowest, according to the Tax Foundation. Colorado made history in 2012 as one of the first two states to legalize recreational adult marijuana use, and now the state is raking in cash from taxing pot. It imposes a 15 percent excise tax on recreational marijuana and marijuana-related products and a general 2.9 percent sales tax. And that might not be all, depending on where the stuff is purchased -- localities may enact their own special taxes. Recreational marijuana sales brought in $2 million in taxes in January, and state officials expect steady revenue patterns to develop by April.
*Flat rate
Connecticut has the third-highest state gasoline tax in the country, behind California and New York, at 49.3 cents per gallon. It’s generally a high-tax jurisdiction, which is evident from its “tax freedom day,” representing how long a person would have to work into the year to have earned enough to pay all federal, state and local taxes. Connecticut has the latest such day of all states -- May 13, according to the Tax Foundation. Those high taxes also come with the highest income per capita -- $60,847 in 2013, according to preliminary numbers from the Bureau of Economic Analysis. Connecticut is one of 13 states that tax Social Security income.
*Exemption is $2 million.
Delaware’s top individual income tax rate was scheduled to decrease in 2014, but state officials decided to keep the rate at 6.6 percent to plug a budget shortfall. For 2012, the state had the seventh-highest individual income tax collections per person, at $1,307. It also ranks as one of the highest per capita collectors of corporate income tax, placing fifth at $288 per person.
*Exemption is $5.34 million.
Retirees and millionaires have good reason to flock to Florida, since it has no personal income tax, inheritance tax or estate tax. Still, the state is projected to have more money to play with this year after state economists forecast a $1.2 billion budget surplus, thanks in part to increased sales tax revenue. Governor Rick Scott has proposed using some of the surplus to cut $500 million in taxes and fees.
It’s cheaper to buy cigarettes in Georgia than in most of the rest of the U.S., because Georgia’s cigarette taxes rank 47th out of 50, at $0.37 per 20-pack. But not all sin taxes are equal here. It’s a little more expensive, in tax terms, to drink beer and wine than in other states. Georgia’s wine excise tax is $1.51 per gallon (eighth in the nation), while its beer excise tax is $1.01 per gallon (fourth nationwide). Want to drink and still pay lower taxes here? Choose spirits, which are taxed at $3.79 and rank 34th-highest in the country.
Hawaii has the second-highest top income tax rate in the country, after California. It's one of the few states that tax net capital gains at below the top income tax rate -- they’re taxed at 7.25 percent. It's one of seven that impose the full sales tax rate on groceries. Hawaii’s combined state and local sales tax rate of 4.35 percent places it near the bottom of the pack.
*Exemption is $5.34 million.
The Idaho State Tax Commission is among the states reminding consumers this year that all of those Internet purchases on which they didn't pay sales tax weren't tax-free -- consumers owe a 6 percent use tax to the state when the goods are used in Idaho. Consumers must include this in their income tax returns, but since these taxes are notoriously difficult to track and collect, whether they pay up is another story. Idaho is one of seven states that don't offer a sales tax break for groceries.
Illinois’s income tax rate is slated to drop to 3.75 percent in January, but Governor Pat Quinn has proposed making a 2011 income tax hike permanent that would keep the current 5 percent rate. The debate could spill over into the governor’s reelection season.
*Flat rate ; **Exemption is $4 million.
Amazon began collecting Indiana’s 7 percent sales tax on Hoosiers’ purchases on its site this January. Indiana was originally supposed to phase out its inheritance tax over 10 years beginning in 2013, but instead the state repealed the tax for people dying after Dec. 31, 2012. In coming years businesses could pay less in taxes, too. Governor Mike Pence signed legislation in March that includes a provision that will gradually reduce corporate income taxes in Indiana to 4.9 percent in 2023. Indiana’s current corporate income tax rate is 7.5 percent, but that is scheduled to decrease on July 1 to 7 percent.
*Flat rate
The top bracket of Iowa’s state income tax reaches 8.98 percent at $68,175 in 2014. The state phased out its tax on Social Security income in 2014. If you want to raise a toast in celebration, it’ll cost you: Iowa has some of the highest excise tax rates on table wine and spirits, according to the Tax Foundation and the Distilled Spirits Council of the United States.
A potential gas tax increase, intended to pay for transportation infrastructure, has been percolating in the Iowa Legislature this session, but nothing had passed as of mid-April.
Note: Spouse, lineal-ascendant and lineal-descendant transfer is tax-free; sibling or child-in-law transfer is taxed at 5 percent to 10 percent; all other transfers are taxed at 10 percent to 15 percent.
A few years ago Kansas enacted sweeping tax cuts. Recently, the Center on Budget and Policy Priorities, a Washington-based group that supports programs that assist the poor, released a study citing Kansas' experience as a cautionary tale for other states. "As other states recover from the recent recession and turn toward the future, Kansas's huge tax cuts have left that state's schools and other public services stuck in the recession, and declining further," the report said.
The Sunflower State is one of 13 that tax Social Security Income; an exemption applies to Social Security income received by taxpayers with annual federal adjusted gross income of $75,000 or less. Kansas does not recognize same-sex marriage, so for income tax purposes that means same-sex couples who file a federal joint return must allocate their income on two separate single returns using a state-provided schedule.
The Bluegrass State may cater more to jockeys than car drivers. Kentucky ranks 16th among the states on gas tax, making drivers pay 30.8 cents per gallon. The gas tax has been largely debated this legislative season, with some legislators proposing to raise it to pay for transportation projects. ??
Note: Spouse, parent, lineal-descendant and sibling transfer is tax-free; aunts, nieces, nephews, and child in-law transfer is taxed at 4 percent to 16 percent with a $1,000 exemption; all other transfers are taxed at 6 percent to 16 percent with a $500 exemption.
The home of “Duck Dynasty” has long been a destination for sportsmen and partiers. Visitors should be prepared to be taxed heavily on their fun. Louisiana’s state and local sales tax rate of 8.89 percent is third-highest of the states. That doesn’t mean the state is rolling in dough: Its general sales tax collections per person in 2012 were $614, putting Louisiana in 37th place. Its income tax can be burdensome for same-sex married couples. It requires them to each fill out pro forma single federal returns and then use that information on their single state returns.
Maine recognizes same-sex marriage, so any married couple there can file a joint state tax return. The state’s cigarette excise tax is $2 per 20-pack, making it the 11th-highest cigarette excise tax in the country. Maine imposes a 5.5 percent state sales tax on medical marijuana, but the 7 percent tax rate on prepared food applies if the herb is baked into brownies.
*Exemption is $2 million.
Maryland and New Jersey are the only states with both an estate tax and an inheritance tax. This year Maryland is expected to enact significant changes to its estate tax that will increase the exemption amount. The current $1 million exemption would be gradually increased over five years to match the federal government’s exemption amount, which is now $5.34 million, and is indexed for inflation.
The General Assembly had a recent brush with Hollywood when "House of Cards" star Kevin Spacey visited Annapolis to persuade lawmakers to increase the Netflix show’s subsidy for its third season. The show is set in the District of Columbia, but much of it is filmed in Maryland.
Note: Spouse, lineal-descendant, spouse of lineal-descendant, and sibling transfer is tax-free; all other transfers are taxed at 10 percent.;*Exemption is $1 million.
Massachusetts’ individual income tax rate decreased at the beginning of December, because state revenues had grown enough to trigger a rate cut from 5.25 percent to 5.2 percent. Last year, the Massachusetts legislature enacted a sales tax on computer software services in 2013, only to repeal it a few months later when it proved unpopular with businesses.
The state has one of the highest cigarette taxes -- at $3.51 per 20-pack, it's second only to New York. Gamblers here might notice that they're taking less in winnings home since last year, when the state started withholding income tax from winnings of more than $600, regardless of the original wager amount.
*Flat rate; **Exemption is $1 million.
The Great Lakes State has a gas tax of 39.1 cents per gallon, the sixth-highest in the country. Michigan, like many other states, gets more in property tax revenue, in percentage terms, than from any other state and local tax. Property tax makes up 37.6 percent of state and local tax collections, followed by general sales tax (26.3 percent), individual income tax (18.8 percent) and corporate income tax (2 percent).
*Flat rate
Tax cuts are coming in after this legislative session. Last year Minnesota became the only state besides Connecticut to impose a gift tax, but this year legislators repealed it. Those who already had paid the tax should look for a check -- the state will refund any payments. Lawmakers also increased estate tax exemption amounts and repealed several “business-to-business” sales taxes -- warehousing or storage services for tangible personal property, repairing and maintaining electronic precision equipment and repairing and maintaining commercial and industrial machinery and equipment.
*Exemption is $1.2 million.
Missouri has the country’s lowest cigarette taxes, at 17 cents per pack. There had been talk of raising that tax, but voters narrowly defeated a tobacco tax initiative in 2012. Low taxes on beer, too: Missouri ranks 49th with a beer excise tax of 6 cents per gallon.
Montana is among the 13 states that tax Social Security income. However, it's also one of five states that don't impose a state-level sales tax. It gets 39 percent of its state and local revenue from property tax.
Nebraska enacted several tax cuts in early April, which include indexing tax brackets for inflation, exempting more Social Security income from taxes, a sales tax exemption for farm machinery, an increase to the state's property tax credit program and the expansion of a property tax homestead exemption.
Note: Transfer to a spouse or charitable organization is tax-free; transfer to descendants and siblings is taxed at 1 percent with a $40,000 exemption; transfers to aunts, uncles, nieces and nephews are taxed at 13 percent with a $15,000 exemption. All other transfers are taxed at 18 percent with a $10,000 exemption.
Nevada’s lack of an income tax makes sales and property taxes crucial revenue generators. And since January, Nevada residents have been paying sales tax on their Amazon.com purchases.
For visitors who make it to Las Vegas for a little fun, Nevada imposes an additional tax of 5 percent to 10 percent on admission, food, refreshments and merchandise. Visitors can gamble from their hotel rooms now, since Nevada was the first state to legalize online gambling last year.
The “Live Free or Die” state doesn’t tax most types of income, other than a 5 percent tax on interest and dividend income. New Hampshire relies heavily on property taxes, getting more than 60 percent of its state and local tax collections from them, according to Tax Foundation data.
New Hampshire may have a tough time following the lead of other states to capitalize on sales of recreational marijuana. In late March the state’s House of Representatives killed a bill that would have legalized small amounts of recreational marijuana for those 21 and up.
*On interest and dividend income, not wages
Same-sex married couples in New Jersey can use a joint tax return for both federal and state income tax filings. And gamblers can choose whether they place their bets by computer or in person, since New Jersey recently started allowing online gambling. In February, online gambling brought $10.3 million in revenue to the state.
*Exemption is $675,000.
Note: Transfer to a spouse, domestic partner, lineal descendant or charitable organization is tax-free; transfer to children-in-law is taxed at 11 percent to 16 percent with a $25,000 exemption; all other transfers are taxed at 15 percent to 16 percent with a $500 exemption.
The fictional home of “Breaking Bad” may not be the ideal place for service providers. New Mexico is one of a handful of states in which services are presumed to be subject to sales tax. It depends more on general sales tax than on other levies for its state and local tax revenue, and collects some of the lowest property taxes in the country, ranking 47th. It doesn't have an inheritance tax, and its gas tax is relatively low at 18.88 cents per gallon. Same-sex couples can file a joint state income tax return, because New Mexico recognizes same-sex marriage.
New York collects more individual income tax per person than any other state: $2,289 as of 2011. And its gas tax of 49.6 cents per gallon is the second-highest in the U.S. But under its recently enacted budget, some New York residents may pay less in property taxes.
A plan was announced earlier this year to allow 20 hospitals to distribute medical marijuana via executive order, but it’s unclear whether the trial program will lead to a larger plan to tax and regulate the herb.
Note: For people who die on or after April 1, 2014, and before April 1, 2015, the exclusion amount is $2,062,500 and the rate range is 3.06 percent to 16 percent. New York is increasing the estate tax exclusion amount over three years. By April 1, 2017, it will be $5,250,000.
North Carolina residents have had to wave goodbye to their tax-free online shopping days. In February, Amazon started collecting sales tax on purchases delivered here, ending a long disagreement with the state. And last year’s first-time-in-a-century Republican control of the state’s executive and legislative branches helped usher in a new era of a flat income tax rate of 5.8 percent, replacing the state’s graduated rate structure.
Like some other states, North Carolina has grappled with how to make up lost gas tax revenue due in part to more fuel-efficient vehicles on the road. Electric car owners now pay a new $100 registration fee.
These are boom times for North Dakota. According to the most recent annual U.S. Census information, the state's severance taxes -- a tax on natural resources taken out of the ground -- accounted for 56.7 percent of its total tax collections in 2012. At the same time, its top income rate of 3.22 percent applies only after the taxpayer’s income reaches $405,100. Retirees are taxed on Social Security income.
There are downsides for some taxpayers in the Roughrider State. It doesn't recognize same-sex marriage, so the couples must allocate income to two single returns using a schedule provided by the state.
Ohio Governor John Kasich has again proposed cutting the income tax, but this time he wants to make up the revenue with a new tax on oil drillers, a hike in the Commercial Activity Tax and a tax increase on cigarettes, tobacco products and electronic cigarettes. The state doesn't recognize same-sex marriages, so couples must allocate their income between two single state returns and use an additional state-provided schedule to determine their state income tax liability.
Oklahoma has a pretty low income tax rate but is one of seven states that tax groceries at the full sales tax rate. Its combined state and local sales tax rate of 8.72 percent ranks fifth-highest among the states. Drivers of gas-guzzlers get a break here -- the state’s 17-cents-per-gallon gas tax ranks 47th in the nation.
Oregonians have no sales tax but pay one of the highest state income tax rates in the country, at 9.9 percent for top filers. That's right behind California and Hawaii. When same-sex married couples in Oregon file their taxes this year, they'll be able to use their federal adjusted gross income on their joint return.
*Exemption is $1 million
Pennsylvania's 3.07 percent flat income tax rate is the lowest top rate of states that impose individual income tax, according to the Tax Foundation, and its property tax collections per capita of $1,305 are 25th lowest nationally. Taxpayers here work until April 17 to earn enough to pay the year's total tax bill.
Pennsylvania has one of the highest corporate income tax rates of the states, at 9.9 percent. Only two jurisdictions -- Iowa (12 percent) and the District of Columbia (9.975 percent) -- have higher rates. Not all of the state’s taxes are high; a recent report found that Pennsylvania has among the lowest taxes on gas drilling in the country.
Rhode Island’s largest source of state and local tax collections is property tax, which makes up 44.7 percent of the collections. Rhode Island allows medical marijuana, but whether it will legalize and then tax adult recreational marijuana is unclear. Governor Lincoln Chaffee indicated in a Bloomberg News interview that he may consider “whether to ‘regulate it and tax it in these tough times.’ ”
*Exemption is $921,655.
For those taking driving vacations this summer, South Carolina would be a good choice for gas tax savings -- its tax of 16.75 cents per gallon is the 48th-lowest in the nation. And if you're a South Carolina taxpayer, the state may owe you money. The IRS recently estimated that South Carolina owes taxpayers $10 million from unclaimed 2010 refunds. Better hurry -- the return filing deadline is April 15.
Since South Carolina doesn't recognize same-sex marriage, couples must make pro forma federal single returns and use that information on their state single returns.
South Dakota's tax-friendly trust laws are among the reasons it is becoming a legal tax shelter for nonresidents, as wealthy families from outside the state finding ways to stash their assets here.
With no income tax, investors in South Dakota are happy to hold on to their capital gains. But shoppers have to shell out a little more in tax than in many other states, because it's one of seven states that don't offer a sales tax break on groceries.
Tourists have long been entertained by the state's thriving music scene. High sales taxes will likely leave them singing the blues. Tennessee has the highest combined state and local sales tax rate, at 9.45 percent, according to the Tax Foundation. It doesn't tax income apart from a 6 percent levy on interest and dividends, and capital gains are exempt. Tennessee has an inheritance tax now (see the note below), but it will be phased out in 2016.
*On interest and dividend income; none on wages
**Plus a 2.75 % tax on certain sales worth $1,600.01 and up to $3,200
***Tennessee calls this an "inheritance tax," but it functions as an estate tax. The exemption is $2 million.
Texans don't pay state income tax, but some of their income tax savings gets spent on state and local sales tax, ranked 11th in the nation, at 8.15 percent. Property taxes are higher here than in a lot of other states, too, with $1,557 in per-person collections coming in at 15th in the nation. Will that always be the case? One candidate for the state’s comptroller of public accounts recently spoke about getting rid of property taxes. The state is in the middle of a drilling boom that contributed to its 2012-2013 budget surplus.
The state makes solid revenue on so-called sin taxes, including those on alcohol. Utah imposes the eighth-highest state spirits excise tax, at $12.19 per gallon, and the 13th-highest state beer excise tax, at 41 cents per gallon. It also imposes a 10 percent tax on all businesses that feature nude performance. Utah is among the growing number of states that permit same-sex couples to file joint returns for state income tax purposes.
*Flat rate
Vermont is one of 13 states that tax Social Security income and has the highest state and local excise collections per person in the country.
A controversy surrounding the tax treatment of electronic cigarettes is raging in the Green Mountain State. A budget bill that recently preliminarily passed the state House of Representatives includes a 92 percent tax on the wholesale cost of electronic cigarettes.
*Exemption is $2.75 million
Virginia recently enacted special fees on environmentally friendly vehicles, but has kept tax rates low on tobacco. In this tobacco-rich state, the cigarette excise tax rate of 30 cents per pack ranks 49th lowest out of 50.
Last year the Virginia General Assembly passed a sweeping deal to overhaul how the state pays for transportation. This year, the legislature repealed a small part of that act -- a $64 annual fee on electric car owners, meant to ensure that all car owners contribute equally to repairing the state’s roads.
*4.3% state, 1% local; the Tax Foundation includes a “mandatory, statewide, local add-on sales tax” in the state rate.
Washington will start selling recreational marijuana for adults this year, and users should be ready to pay up. The state plans to impose a 25 percent excise tax at each stage of growing, processing and selling cannabis products. The Washington State Economic and Revenue Forecast predicted that cannabis-related sales will generate $51 million in taxes and fees for the 2015-2017 budget period. Smoking cigarettes is expensive here, too. Washington imposes the sixth-highest cigarette excise tax in the country, at $3.025 per 20-pack.
*Exemption is $2.01 million
The District of Columbia’s sales tax is the lowest in its local region for the first time in 45 years, according to the Tax Foundation. The D.C. Council (the District’s local governing body) voted last year to cut the previous 6 percent sales tax rate by a quarter of a percentage point to roll back a 2009 increase that was used to cover a budget shortfall. The rate reduction and the fact that there are no other local sales tax rates give Washington, D.C., one of the lowest combined sales tax rates in the country.
Residents may feel the pinch more in property ownership than in retail shopping. Property tax collections are some of the highest in the country, at $2,871 per person.
*Exemption is $1 million.
West Virginia taxes Social Security income, but shoppers are no longer paying sales tax on groceries after the state eliminated that tax last year. Those who didn't file a tax return for 2010 but think they might have a refund coming their way have a short time to get caught up. The IRS recently announced it has $3 million in unclaimed federal tax refunds for West Virginians. The filing deadline to get those refunds is April 15.
The Wisconsin Assembly and Governor Scott Walker recently put through a budget bill that cuts income and property taxes by more than $500 million annually. The lowest individual income tax bracket will be lowered from 4.4 percent to 4 percent. Recent data show that Wisconsin’s property tax per person ranks 12th in the country, at $1,724, according to the Tax Foundation
With no tax on income, capital gains or net corporate income, Wyoming makes up the difference in property taxes. The state has the sixth-highest property tax per person in the country, according to the Tax Foundation.
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every state that a company has a distribution center in is charging sales tax on local sales.
It's nice to be reminded, as a resident of the people's republic of Minnesota, that we are being raped and pillaged by the tax man. What I don't understand though is why is North Dakota ranked as a better tax environment than South Dakota? Based on the data, it would seem that South Dakota is about one of the best states to live in from a total tax situation, and really seems like one of the more fairly designed tax systems -- taxing not production but consumption, and keeping property taxes low.
Just shush up and pay for the new football stadium here that no one will be able to afford to go to. You know, like Target field. Sarc on.
States Sales Tax in GA is 7% not 4%
This data is outdated or I missed the disclaimer...
Sorry but it is 4% at the state level. The rest is what your particular county adds on for things like SPLOST.
This is a stupid, worthless analysis. Unlike at the federal level, you can't just look at imcome taxes. States tax you in so many different ways: income tax, property tax, sales tax, gas tax, utility taxes, car registration fees. CA has very high income tax, but due to Prop 13, it has low property tax (especially if you've owned a home for a long time). If you are retired living on social security and own a home, you're much better off in CA than, for example, TX, which has no income tax but a very high property tax. On the other hand, if you are a heavy hitter in global banking, CA's high marginal income tax rate is indeed a killer.
A "Killer".??
A "heavy hitter in global banking " cares as much about his/her state taxes as Nancy Pelosi cares about you.
To them, it falls into the petty cash category.
Good post but the largest impact overall is the income tax - every other tax stems from lifestyle.
As a resident of Maine, New Hampshire, Massachussettes, Texas and Singapore I found New Hampshire to be the most tax friendly state, ME & MA to be the least friendly and Singapore to be very business & income tax friendly but the sales tax was horrible.
NM has low taxes, but they shoot you for an illegal U-turn... Fuck New MessyKo
Well, cross that state off my list of retirement havens.
Here is another interesting analysis.
http://freedominthe50states.org/overall
I live in California. I love the geography, hate the government which is so corrupt and Socialist, not tomention business unfriendly = SUICIDAL. I have a good CPA (haven't had to pay state or fed taxes). My new business and my wife's new business are starting to take off now and the income is going to minimally double or triple. We'll be moving to Florida in about a year. Switching our CA corps to Nevada corps. California isn't going to get any of our money.
Taxation without representation will be the cause of the second revolution.
Many people are aware of how serious oof a problem this is
And all you fuckers out there: you better vote. everyone of you. At the least you can do is to vote anyone in office out of office.
It hardley takes any effort. And, if the system is broken at least you tried to do something.
Can't do it. Any vote is a vote for the system.
You might want to add in traffic fines. In CA -$400 for failure to come to a complete stop before making a right turn. Most traffic tickets are $300-400. Get a parking ticket in San Francisco - $72. These are very easy to pick up. You just need to be in the wrong place at the wrong time.
Yeah. another fine use of the hundreds of 'spy' cameras popping up all over.
The government systems, on the state and federal level, are collapsing. Corruption and non-survival policies have taken their toll. They are desperate and will become more desperate as the downward spiral continues. They will be on the hunt for money and taxes will go up higher than you ever imagined possible. Just a desperate and illogical action attempted by a dying entity. They will do a lot of harm in their attempts to maintain power and keep the status quo going. They will fail. But there will be a lot of collateral damage. Protect yourselves. Be prepared.
That's right.
We paid all of our final "bills" (taxes), sold everything, and moved out of the country.
We realized that we would continue to pay the government, even if retired, via higher prices. Even here, we are paying the criminal Oligarchy via inflation -- that is now worldwide and we cannot escape it.
For example, our cell phone plan was ~$50 per phone in NV. Here in Thailand, the most expensive plan is ~$23. I don't use my phone much, and use WiFi for data, so I get by on about $7-10/month.
I feel you can do a better analysis when you check out cost of living figures. When I did about 10 years ago, Nevada was about 60% of California.
I have been reading about highest ever prices for beef, pork, shrimp, there (and do you think these prices will come down later?! Good luck with that!!).
As I have told my family still in USA: "it is going to get damn expensive to live there."
Live within the system, change the system (good luck throwing TPTB out/off), or exit the system.
I miss the income, but am so glad to be off the hamster wheel.
Washington state sales tax is far closer to 10% than the 6.5% indicated.
Either way the amount of taxes paid by the people is absurd.
sschu
Why aren't the no-income tax states listed as the lowest ??
Isolating a single tax of any kind is highly misleading, smacks of propagandizing.
No list of taxes owed by the citizens of any state should be permissible in any serious discussion of 'affordability' of that entity.
The total tax burden of even a city within the state needs to be spelled out. ALL the taxes need to be spelled out including those ones that lurk in your utilitybills, phone, cell phone, and and other necessities of life.
As some correctly point out here, you may have a lower state income tax, but an unconscionable Real Estate Tax which drives a stake in the heart of Home Ownership. In many counties and school districts especially those without a ghost of Prop !3 in Californica, the notion of home owneship is myth, and all you are really doing, really, is leasing for the entire time you spend in the home, from the 4 entities that actually own your home: the county, the school district, the city and the state, (soon the FEDERAL government will find a way to tax your property too, before you sell it).
Doesnt count gross receipts tax in New Mexico and Hawaii. In my city (varies by municipality), it is 8.25%. Puts these states right up top.
..."If you are retired living on social security and own a home, you're much better off in CA than, for example, TX, which has no income tax but a very high property tax."
Ummm, have you checked the cost of a house in Texas as compared to California? You can live in a mansion for what you pay for a bungalow in Moonbeam land. Sorta offsets, I think.
In Ohio where education unions rule, 81% of my property taxes go to the schools, I mean the "children".
PENNSYLVANIA - I have a MAJOR CAUTION in the interpretation of this data as it is presented. The PA State Income Tax Rate is indeed a flat 3.07%; however there are NO NO NO NO NO deductions. So this rate does not compare directly with other states. In fact, I found that when I lived in neighboring Maryland, my state income tax was less than it was when I moved to Pennsylvania.
hotlinking images straight from bloomberg? lolz tylers
The 3% will give their lives and treasure to fix this mess, just like they did last time.
In Connecticut the aveage retiree move South when he retires. They even have a company to help them relocate. When the company itself threated to relocate the State paid them to stay.
http://courantblogs.com/dan-haar/state-offers-6-5m-to-corporate-relocati...
Here in Oregon, the property taxes on homes can amount to as much as renting.
Every couple of years the elite try to impose a sales tax, but, so far, we have fought it off. The absence of a sales tax is the only financial incentive for staying here.
The brightest buy homes across the Columbia River in Washington State where property taxes remain much less, and they shop in Oregon.
However, the zombies (which is 'youth' spelled backwards), who have no awareness of social justice, passively work for low wages, sleep in their parents' basement, and smoke medical weed.
So what happens if you live in an RV and just keep moving every 90 days across a border to a different RV park near a cheap golf course and trade online or something? Can one be without a state? Or rather, can one keep from being owned by a particular state?
Sort of I suppose. I would think you couldn't pay any real estate taxes, or income taxes, but would still be subject to the sales taxes.
Boat would be better. (Do I need to say sailboat?)
My oldest boy bought a 1965, 27 ft Bristol for $1,000 on ebay and lives on it in the Florida Keys with his GF. I am jealous.
None of this matters too much. In the USSA, you are subject to federal taxes and have to pay up. State to state differences can be significant for some people, but are largely marginal.
Washington State has no tax on food.
I call BS on this. Illinois is the 10th lowest state? You gotta be fucking kidding me. Real estate taxes in Crook and the collar counties average around 3- 4% of the value of a home, so on a 250K home you can figger on 8-10k/yr in real estate taxes. Also, Chicago has an additional sales tax as does Crook county.
What about fucking tolls to use the shitty expressways in Chicago? To go from Wisconsin border to Indiana is gonna cost you damn near $15. What about the fucking gas taxes. If you live near Indiana or Wisconsin border you NEVER buy gas in Illinois. It's 25-40 cents a gallon more literally 500 feet down the road in Illinois, sometimes more for some unknown reason. Then theres the fines for not stopping at red lights and shit that they capture on the hundereds of fucking 'spy' cams all over the fucking state.
I know for a fact from people that live in Indiana and Wisconsin but work in Illinois, that they pay nowhere near what Illinois residents pay.
I guess if you average in places like East St. Louis vs northern areas it would lower averages some, but most of the states population live in those northern counties.
Also, they show Minnesota in 10 worst. They do have some hight taxes, but they have NO sales tax on clothing for example, so I question how they are calculating these.
But, at least I'm not bitter...........
Cheat them and live in a Washington town close to the Oregon border - buy your shit in Oregon (no sales tax) and live in Washington (no income tax).
They still got you for Property tax but if you die with less than $2.1mil, no estate tax.
And if you keep anything more than $2.1mil in au/ag, who's gonna know?
Damn, you gotta work at this hard to keep your own fucking money.
Sales Tax in Texas is 8.25%, not 6.25%
All I can say is: Yankees never met a tax they didn't love to pay. It's that mentality that thinks big gubmint is the answer to everything. Big gubmint comes at a big price. And where there are high taxes, there is also high corruption among the politicians.
And while I'm at it, a few observations about my state of Florida: All of the northeasterners moving down here are bringing their "old ways" with them. They can't help it, it's how they were raised. That would be bad enough, but the SOBs just have to get into politics, and their northern bretheren vote for them, because; "THAT IS THE WAY WE DID IT BACK HOME". So, in the years ahead, Florida is screwed, due to all of the New Jersey, New Yorkers and New Englanders who are moving here in record numbers. Interesting note: Mid-westerners {Ohio, Indiana, Pennslyvania, Illinois, Michigan, Wisconsin and Missouri} don't involve themselves in state and local politics to anywhere near the extent that the "yankees" do. They are much less progressive, much more likely to be conservative and more respectful in general. Too bad we don't have more of them, and less of the northeasterners. I see higher taxes in general in Florida's future, and would not be surprised to see an income tax inacted. The camel's nose under the tent would be a 2 or 3% inital income tax, that would "progressively" move higher over time. And as for Florida politics; I don't see how it could get much worse. Ten years ago, the CONgressman representing my district was canned because he couldn't keep his homo-pedophile hands off of teenaged boys. We just lost another {Trey Radel} because he couldn't stop putting white powder up his nose. Now we have the biggest crook the state has ever seen, passing himself off as a republican govenor, running against the last republican govenor {who is now a democrat}, that was thrown out for being "outted" as a liberal all along. Confused yet? Don't be, it all makes perfect sense down here, because it is the norm.
I moved from Florida to Arizona.....I used to pay in Florida $6,300 in property tax on my house, I now pay $2800.....I used to pay $4700 for insuring the house in Florida, I now pay $420 for insurance....and Arizona does not tax SS,,,,,
Washington state has no income tax, but has every other conceivable tax you could imagine, including a Business & Occupation tax that is imposed on top-line revenue. Oh, and there's a "personal property tax" in which you are required to report every tangible item in your business (literally down to the amount of paperclips you own); Then the county tax assessor places a value on those assests and you pay an annual tax, like, forever, until the property is sold or otherwise taken out of service.
The Washington state entry is wrong -- sales tax in Seattle is a hair under 10%, while it's around 9% in other counties. It's a very regressive tax that should be replaced by a more fair state income tax, but voters apparently don't understand that. As it is now, there are over 60,000 millionaires in the Puget Sound area, and yet Seattle streets are full of potholes, and the freeways are crumbling as well... something wrong with this picture.
Texans don't pay state income tax, but some of their income tax savings gets spent on state and local sales tax, ranked 11th in the nation, at 8.15 percent. Property taxes are higher here than in a lot of other states, too, with $1,557 in per-person collections coming in at 15th in the nation. Will that always be the case? One candidate for the state’s comptroller of public accounts recently spoke about getting rid of property taxes. The state is in the middle of a drilling boom that contributed to its 2012-2013 budget surplus
This would be HUGE,in that no property taxes means YOU OWN your property.Also,we have a Budget surplus every year,we have a rainy day fund that typically has 13-16 billion in it.(before the oil boom)ONE of the best reasons for this is we only ALLOW the legistature to meet every TWO years.(less time to screw stuff up). Also,we MUST have a balanced budet every year.
This must be some sort of joke. Michigan is listed as having lower taxes than Tennessee? I have lived both places and I this makes no sense to me.