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MSN Money - The best and worst states for taxes
26 March 2007This article was a tip from a reader, THANKS! Great article. Although I must say, I am depressed.
The whole article can be read at MoneyCentral.
The state that pays the most in combined state, local and federal taxes, per capita, is Connecticut (35.9%), followed by New York (35.1%), New Jersey (34.3%) and Washington (33.7%). Alabama pays the least (27.5%), followed by Alaska (27.9%) and Mississippi (28%).
What about the notion of relocating to take advantage of lower taxes in other states? Although it’s not for everyone, it appears that a growing number of people, particularly the wealthy, are doing just that. According to a 2006 article in Barron’s, large numbers of taxpayers are moving from high-tax states to those with lower taxes. One of the big motivators is that 18 states and the District of Columbia have recently implemented significant estate taxes. Angered by high state and local taxes, residents of the Northeast are fleeing to Florida
There is a great chart summarizing all the taxes (gas, property, income etc) by state. Numerous people have asked me for an all-in-one chart as they look for a “flee to state” or a state to retire to. I hope MSN does not mind but I’ve reproduced the whole chart here. Just look at the gas tax for Connecticut as compared with all other states, that hurts.
Why does our state hate us? Incidently, assume your household income is $100,000 a year the difference in taxes between Connecticut and New Hampsire would be ~$128.00 a week. That is $128 extra in your pocket every week. Some how NH manages to meet it obligations with a lot less than we need.
| Taxes by state | ||||||||
|---|---|---|---|---|---|---|---|---|
| State | Gasoline* | Cigarettes | Retail sales** | All state, local taxes*** | Rank | All federal, state, local taxes*** | Rank | |
| Alabama | 20.3 | $0.42 | 4% | 8.8% | 46 | 27.5% | 50 | |
| Alaska | 8 | $1.80 | 6.6% | 50 | 27.9% | 49 | ||
| Arizona | 19 | $2.00 | 5.6 | 10.1% | 32 | 29.9% | 29 | |
| Arkansas | 21.8 | $0.59 | 6 | 10.3% | 27 | 29.1% | 40 | |
| California | 40.1 | $0.87 | 7.25 | 10.9% | 15 | 32.7% | 9 | |
| Colorado | 22 | $0.84 | 2.9 | 9.8% | 38 | 30.7% | 23 | |
| Connecticut | 40.5 | $1.51 | 6 | 11.3% | 9 | 35.9% | 1 | |
| Delaware | 23 | $0.55 | 8.4% | 48 | 29.7% | 33 | ||
| Florida | 31.9 | $0.34 | 6 | 9.7% | 39 | 31.0% | 21 | |
| Georgia | 21.3 | $0.37 | 4 | 10.4% | 25 | 30.6% | 25 | |
| Hawaii | 31.8 | $1.60 | 4# | 11.7% | 5 | 31.2% | 17 | |
| Idaho | 25 | $0.57 | 6 | 10.2% | 31 | 29.0% | 42 | |
| Illinois | 32.5 | $0.98 | 6.25 | 10.9% | 14 | 32.7% | 10 | |
| Indiana | 26.6 | $0.56 | 6 | 11.0% | 12 | 30.7% | 24 | |
| Iowa | 22 | $0.36 | 5 | 10.4% | 26 | 29.4% | 36 | |
| Kansas | 25 | $0.79 | 5.3 | 10.7% | 18 | 30.5% | 26 | |
| Kentucky | 18.5 | $0.30 | 6 | 10.7% | 20 | 29.8% | 31 | |
| Louisiana | 20 | $0.36 | 4 | 11.0% | 11 | 29.2% | 37 | |
| Maine | 28.3 | $2.00 | 5 | 13.5% | 1 | 33.1% | 7 | |
| Maryland | 23.5 | $1.00 | 5 | 10.7% | 19 | 32.0% | 13 | |
| Massachusetts | 23.5 | $1.51 | 5 | 10.3% | 28 | 33.4% | 6 | |
| Michigan | 30.8 | $2.00 | 6 | 10.8% | 16 | 31.1% | 19 | |
| Minnesota | 22 | $1.49 | 6.5 | 11.9% | 4 | 33.6% | 5 | |
| Mississippi | 18.8 | $0.18 | 7 | 10.2% | 29 | 28.0% | 48 | |
| Missouri | 17.6 | $0.17 | 4.225 | 9.9% | 34 | 29.4% | 35 | |
| Montana | 27.8 | $1.70 | 9.5% | 42 | 29.0% | 43 | ||
| Nebraska | 28 | $0.64 | 5.5 | 11.6% | 6 | 30.9% | 22 | |
| Nevada | 32.5 | $0.80 | 6.5 | 9.5% | 43 | 31.6% | 14 | |
| New Hampshire | 19.6 | $0.80 | 7.3% | 49 | 29.2% | 39 | ||
| New Jersey | 14.5 | $2.58 | 7 | 10.8% | 17 | 34.3% | 3 | |
| New Mexico | 18 | $0.91 | 5 | 9.9% | 36 | 28.5% | 45 | |
| New York | 41.7 | $1.50 | 4 | 12.9% | 2 | 35.1% | 2 | |
| North Carolina | 30.2 | $0.35 | 4.5 | 10.5% | 23 | 30.3% | 27 | |
| North Dakota | 23 | $0.44 | 5 | 9.8% | 37 | 29.8% | 30 | |
| Ohio | 28 | $1.25 | 5.5 | 12.0% | 3 | 31.3% | 16 | |
| Oklahoma | 17 | $1.03 | 4.5 | 9.6% | 40 | 28.2% | 47 | |
| Oregon | 24.9 | $1.18 | 9.9% | 35 | 30.2% | 28 | ||
| Pennsylvania | 32.3 | $1.35 | 6 | 10.4% | 24 | 31.2% | 18 | |
| Rhode Island | 31 | $2.46 | 7 | 11.5% | 8 | 33.0% | 8 | |
| South Carolina | 16.8 | $0.07 | 5 | 10.2% | 30 | 29.2% | 38 | |
| South Dakota | 24 | $1.53 | 4 | 9.2% | 45 | 28.9% | 44 | |
| Tennessee | 21.4 | $0.20 | 7 | 8.6% | 47 | 28.2% | 46 | |
| Texas | 20 | $1.41 | 6.25 | 9.4% | 44 | 29.7% | 32 | |
| Utah | 24.5 | $0.70 | 4.75 | 10.5% | 22 | 29.5% | 34 | |
| Vermont | 20 | $1.79 | 6 | 11.1% | 10 | 31.3% | 15 | |
| Virginia | 19.2 | $0.30 | 5 | 9.5% | 41 | 31.1% | 20 | |
| Washington | 34 | $2.03 | 6.5 | 10.9% | 13 | 33.7% | 4 | |
| West Virginia | 27 | $0.55 | 6 | 10.6% | 21 | 29.1% | 41 | |
| Wisconsin | 32.9 | $0.77 | 5 | 11.6% | 7 | 32.2% | 12 | |
| Wyoming | 14 | $0.60 | 4 | 10.1% | 33 | 32.4% | 11 | |
| District of Columbia | 20 | $1.00 | 5.75 | 12.8% | 35.1% | |||
*Additional federal levy is 18.4 cents nationwide
**Base state rate (local tax may be higher)
***Average, as percentage of income
#General excise tax instead of sales tax
Sources: Tax Foundation, Tax Policy Center, American Petroleum Institute, American Lung Association
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