Health and Fitness

These states have the biggest tax burdens



DENVER (KDVR) — It’s virtually April and meaning Tax Day is true round the nook.

Pockets Hub did a examine lately on the biggest tax burdens for every state primarily based on property taxes, particular person revenue taxes, and complete gross sales and excise tax.

Not like the tax fee, which might be affected by quite a few particular person circumstances, the tax burden measures “the proportion of total personal income that residents pay toward state and local taxes,” the report’s writer defined.

New York topped the listing for the state with the biggest tax burden. Alaska got here in as the state with the lowest tax burden, in keeping with the examine.

Right here’s a have a look at Pockets Hub’s tax burden rating for every state:

Total Rank*  State Complete Tax Burden
(%)
 
Property Tax Burden
(%)
 
Particular person Revenue Tax Burden
(%)
 
Complete Gross sales & Excise Tax Burden
(%)
 
1 New York 12.75% 4.43%
(6)
4.90%
(1)
3.42%
(25)
2 Hawaii 12.70% 2.55%
(34)
3.18%
(8)
6.97%
(1)
3 Maine 11.42% 5.48%
(1)
2.51%
(21)
3.43%
(24)
4 Vermont 11.13% 5.31%
(2)
2.49%
(22)
3.33%
(27)
5 Minnesota 10.20% 2.93%
(22)
3.74%
(5)
3.53%
(22)
6 New Jersey 10.11% 4.98%
(4)
2.54%
(20)
2.59%
(43)
7 Connecticut 10.06% 4.16%
(7)
3.07%
(11)
2.83%
(41)
8 Rhode Island 9.91% 4.48%
(5)
2.31%
(28)
3.12%
(34)
9 California 9.72% 2.76%
(30)
3.80%
(4)
3.16%
(32)
10 Illinois 9.70% 3.98%
(8)
2.22%
(30)
3.50%
(23)
11 Maryland 9.47% 2.61%
(33)
4.07%
(3)
2.79%
(42)
12 New Mexico 9.37% 2.04%
(42)
1.75%
(37)
5.58%
(4)
13 Iowa 9.34% 3.42%
(14)
2.57%
(18)
3.35%
(26)
14 Kansas 9.34% 3.11%
(18)
2.43%
(23)
3.80%
(18)
15 Utah 9.19% 2.36%
(37)
3.17%
(9)
3.66%
(19)
16 Mississippi 9.16% 2.84%
(23)
1.70%
(39)
4.62%
(7)
17 West Virginia 9.08% 2.28%
(40)
2.76%
(14)
4.04%
(12)
18 Nebraska 9.01% 3.69%
(10)
2.41%
(24)
2.91%
(39)
19 Ohio 8.99% 2.78%
(27)
2.60%
(17)
3.61%
(21)
20 Wisconsin 8.92% 3.17%
(16)
2.83%
(13)
2.92%
(38)
21 Massachusetts 8.80% 3.49%
(12)
3.35%
(6)
1.96%
(45)
22 Arkansas 8.77% 1.77%
(46)
2.24%
(29)
4.76%
(6)
22 Kentucky 8.77% 1.99%
(44)
3.16%
(10)
3.62%
(20)
24 Louisiana 8.75% 1.95%
(45)
1.74%
(38)
5.06%
(5)
25 Oregon 8.65% 3.14%
(17)
4.39%
(2)
1.12%
(50)
26 Pennsylvania 8.57% 2.81%
(25)
2.57%
(18)
3.19%
(30)
27 Colorado 8.52% 2.97%
(20)
2.32%
(27)
3.23%
(29)
28 Indiana 8.42% 2.34%
(38)
2.17%
(32)
3.91%
(15)
29 Arizona 8.39% 2.50%
(35)
1.60%
(40)
4.29%
(8)
30 Washington 8.37% 2.63%
(32)
0.00%
(44)
5.74%
(3)
31 Michigan 8.25% 3.09%
(19)
2.19%
(31)
2.97%
(36)
32 Texas 8.22% 3.97%
(9)
0.00%
(44)
4.25%
(11)
33 Nevada 8.19% 2.03%
(43)
0.00%
(44)
6.16%
(2)
34 Virginia 8.18% 2.97%
(20)
2.92%
(12)
2.29%
(44)
35 North Carolina 8.16% 2.19%
(41)
2.65%
(16)
3.32%
(28)
36 Georgia 8.01% 2.68%
(31)
2.38%
(25)
2.95%
(37)
37 North Dakota 8.00% 2.77%
(28)
0.95%
(41)
4.28%
(9)
38 Missouri 7.80% 2.30%
(39)
2.36%
(26)
3.14%
(33)
39 South Carolina 7.67% 2.80%
(26)
2.03%
(33)
2.84%
(40)
40 Idaho 7.59% 2.39%
(36)
2.03%
(33)
3.17%
(31)
41 Oklahoma 7.47% 1.74%
(48)
1.90%
(36)
3.83%
(17)
42 Alabama 7.41% 1.41%
(50)
2.00%
(35)
4.00%
(13)
43 Montana 7.39% 3.45%
(13)
2.66%
(15)
1.28%
(47)
44 South Dakota 7.12% 2.84%
(23)
0.00%
(44)
4.28%
(9)
45 Florida 6.64% 2.77%
(28)
0.00%
(44)
3.87%
(16)
46 New Hampshire 6.41% 5.11%
(3)
0.14%
(42)
1.16%
(49)
47 Wyoming 6.32% 3.32%
(15)
0.00%
(44)
3.00%
(35)
48 Delaware 6.22% 1.77%
(46)
3.28%
(7)
1.17%
(48)
49 Tennessee 5.75% 1.71%
(49)
0.06%
(43)
3.98%
(14)
50 Alaska 5.06% 3.54%
(11)
0.00%
(44)
1.52%
(46)
Credit score: Pockets Hub

The examine additionally checked out how states voted in the 2020 presidential election and located that blue states had the next common tax burden than pink states.

Whereas some states have larger tax burdens than others, they will nonetheless be seen as honest charges to some.

Donald Bruce, affiliate director of the Boyd Heart for Enterprise & Financial Analysis at the College of Tennessee, says that equity is in the eye of the beholder relating to taxes.”

“Some people see a tax as fair when everyone pays the same percentage tax rate, while others define fairness differently and want to see the tax burden rise as a share of income,” Bruce stated. “Gross sales and property taxes are seen as honest to some as a result of everybody usually pays the similar tax fee.

Some disagree, Burden added, as a result of the share of revenue represented by gross sales tax – the tax burden – diminishes the extra money folks have.

“Income taxes are broadly seen as more fair because they usually involve graduated marginal tax rates,” Bruce continued. “In other words, those with more income pay a higher percentage of that income in taxes.”

Tax Day is April 18.



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