Taxes – How Does Your State Compare?

Wondering where you stand with your taxes in comparison to the other 49 states? Looks like 24/7 Wall Street wanted to know also.

“To identify the states with the highest and lowest tax burdens, 24/7 Wall St. reviewed state and local tax burdens as a share of state residents’ income in fiscal 2012 provided by the Tax Foundation. Personal income per capita for each state is for 2016 and came from the U.S. Bureau of Economic Analysis. State individual income tax collections per capita are for fiscal 2015; state and local property tax collections per capita are for fiscal 2014; state general sales tax collections per capita are for fiscal 2015; and all came from the “Tax Foundation’s Facts & Figures 2017: How Does Your State Compare?” report. All data are for the most recent period available” reported 24/7 Wall Street.com.

While most states tend to collect income, property, and sales taxes among several others, not all states collect all taxes and not at the same rate. High-tax-burden states collect more taxes and at higher rates, while lower-burden states collect less taxes and at lower rates.

According to the “Tax Foundation’s Facts & Figures 2017: How Does Your State Compare?”report, here are the top ten highest taxed States with their rates:

1. New York

Taxes paid as percentage of income: 12.7%
Income per capita: $59,563 (4^thhighest)

2. Connecticut

Taxes paid as percentage of income: 12.6%
Income per capita: $69,311 (the highest)

3. New Jersey

Taxes paid as percentage of income: 12.2%
Income per capita: $61,472 (3rd highest)

4. California

Taxes paid as percentage of income: 11.0%
Income per capita: $56,374 (6th highest)

5. Illinois

Taxes paid as percentage of income: 11.0%
Income per capita: $51,817 (15th highest)

6. Wisconsin

Taxes paid as percentage of income: 11.0%
Income per capita: $46,762 (24^thhighest)

7. Maryland

Taxes paid as percentage of income: 10.9%
Income per capita: $59,052 (5th highest)

8. Rhonde Island

Taxes paid as percentage of income: 10.8%
Income per capita: $50,427 (17th highest)

9. Minnesota

Taxes paid as percentage of income: 10.8%
Income per capita: $52,038 (13th highest)

10. Massachusetts

Taxes paid as percentage of income: 10.3%
Income per capita: $64,235 (2nd highest)

19. Georgia

Taxes paid as pct. of income: 9.1%
Income per capita: $42,159 (11th lowest)

Taxes can be complicated especially keeping up with the newest state and federal laws and how it effects your household and business year over year. Hiring a tax professionalis a wise decision to assist you with managing your personal and business finances.

Joshua Wilson, CPA, PCis a full service public accounting firm that specializes in accounting, tax preparation, tax planning, & business development for small businesses in the Gwinnett & Barrow County areas. Give Joshua a call today to set up a consultation at 770-856-1309 or email him at josh@joshuawilsoncpa.com.