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The 10 best and worst states to pay taxes

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WASHINGTON – April 4, 2016 – Tax day is approaching fast – that’s April 18 this year (in most states), in case you needed the reminder. While time keeps ticking away (and stress keeps mounting for those who haven’t filed yet), WalletHub released a report that identifies the best and worst states to be a taxpayer.
The report compares state and local tax rates across all 50 states and the District of Columbia against the national median. It also calculates relative income-tax obligations by applying the effective income-tax rates in each state and locality to the average American’s income, according to their methodology.
Report analysts look at four types of taxation: real estate tax, vehicle property tax, income tax, and sales and excise tax.
In the list that follows, we look at the 10 best and 10 worst states to be a taxpayer, based on the report’s findings. Each ranking includes an overall rank number, the effective total state and local tax rates on the median U.S. household, the annual state and local taxes on the median U.S. household, the percentage difference between the state and the national average, and the annual state and local taxes on the median state household.
Bottom 10: Worst states to pay taxes
10. New Jersey
Effective total state & local tax rates on median U.S. household: 12.39%
Annual state & local taxes on median U.S. household: $6,675
Percentage difference between state & national average: 15.70%
Annual state & local taxes on median state household: $10,891
9. Iowa
Effective total state & local tax rates on median U.S. household: 12.75%
Annual state & local taxes on median U.S. household: $6,872
Percentage difference between state & national average: 19.12%
Annual state & local taxes on median state household: $6,071
8. Ohio
Effective total state & local tax rates on median U.S. household: 12.97%
Annual state & local taxes on median U.S. household: $6,991
Percentage difference between state & national average: 21.19%
Annual state & local taxes on median state household: $5,892
7. Michigan
Effective total state & local tax rates on median U.S. household: 13.09%
Annual state & local taxes on median U.S. household: $7,054
Percentage difference between state & national average: 22.28%
Annual state & local taxes on median state household: $5,717
6. New York
Effective total state & local tax rates on median U.S. household: 13.38%
Annual state & local taxes on median U.S. household: $7,211
Percentage difference between state & national average: 25%
Annual state & local taxes on median state household: $9,342
5. Rhode Island
Effective total state & local tax rates on median U.S. household: 13.46%
Annual state & local taxes on median U.S. household: $7,255
Percentage difference between state & national average: 25.77%
Annual state & local taxes on median state household: $8,497
4. Connecticut
Effective total state & local tax rates on median U.S. household: 13.48%
Annual state & local taxes on median U.S. household: $7,262
Percentage difference between state & national average: 25.89%
Annual state & local taxes on median state household: $10,131
3. Wisconsin
Effective total state & local tax rates on median U.S. household: 13.58%
Annual state & local taxes on median U.S. household: $7,316
Percentage difference between state & national average: 26.82%
Annual state & local taxes on median state household: $7,065
2. Nebraska
Effective total state & local tax rates on median U.S. household: 13.85%
Annual state & local taxes on median U.S. household: $7,466
Percentage difference between state & national average: 29.41%
Annual state & local taxes on median state household: $6,525
1. Illinois
Effective total state & local tax rates on median U.S. household: 14.54%
Annual state & local taxes on median U.S. household: $7,836
Percentage difference between state & national average: 35.83%
Annual state & local taxes on median state household: $8,100

Top 10: Best states to pay taxes
10. Florida
Effective total state & local tax rates on median U.S. household: 9.03%
Annual state & local taxes on median U.S. household: $4,868
Percentage difference between state & national average: -15.62%
Annual state & local taxes on median state household: $4,305
9. South Carolina
Effective total state & local tax rates on median U.S. household: 8.80%
Annual state & local taxes on median U.S. household: $4,742
Percentage difference between state & national average: -17.80%
Annual state & local taxes on median state household: $4,009
8. California
Effective total state & local tax rates on median U.S. household: 8.80%
Annual state & local taxes on median U.S. household: $4,741
Percentage difference between state & national average: -17.81%
Annual state & local taxes on median state household: $6,803
7. Idaho
Effective total state & local tax rates on median U.S. household: 8.48%
Annual state & local taxes on median U.S. household: $4,569
Percentage difference between state & national average: -20.80%
Annual state & local taxes on median state household: $4,074
6. Tennessee
Effective total state & local tax rates on median U.S. household: 7.95%
Annual state & local taxes on median U.S. household: $4,284
Percentage difference between state & national average: -25.75%
Annual state & local taxes on median state household: $3,523
5. Nevada
Effective total state & local tax rates on median U.S. household: 7.72%
Annual state & local taxes on median U.S. household: $4,161
Percentage difference between state & national average: -27.86%
Annual state & local taxes on median state household: $4,028
4. Wyoming
Effective total state & local tax rates on median U.S. household: 7.45%
Annual state & local taxes on median U.S. household: $4,015
Percentage difference between state & national average: -30.40%
Annual state & local taxes on median state household: $4,312
3. Montana
Effective total state & local tax rates on median U.S. household: 6.92%
Annual state & local taxes on median U.S. household: $3,728
Percentage difference between state & national average: -35.37%
Annual state & local taxes on median state household: $3,561
2. Delaware
Effective total state & local tax rates on median U.S. household: 6.02%
Annual state & local taxes on median U.S. household: $3,246
Percentage difference between state & national average: -43.74%
Annual state & local taxes on median state household: $3,830
1. Alaska
Effective total state & local tax rates on median U.S. household: 5.69%
Annual state & local taxes on median U.S. household: $3,066
Percentage difference between state & national average: -46.85%
Annual state & local taxes on median state household: $4,237
Copyright © 2016 Summit Business Media, Lynette Gil; provided by SyndiGate Media Inc. (Syndigate.info). All rights reserved.  


Source: Florida Realtors Feed

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