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This is a list that will seem surprising to some. Methodology is contained at the beginning of the article.
To calculate the least and most tax-friendly states in America, researched income and sales tax rates by state using data from the Tax Foundation. Property tax rates were sourced from the U.S. Census Bureau.
Using expenditure and income data from the Bureau of Labor Statistics’ Consumer Expenditure Survey and income and housing data from the U.S. Census Bureau, constructed a hypothetical family with one dependent, a gross income of $94,003 (the national median income at the time of research), a home worth $320,900 (the median home price at the time of research) and annual taxable purchases of $22,203.
Does this also cover local income taxes? There’s no way Maryland is only $689 more in taxes than Virginia when there’s a 3.2% local income tax almost everywhere you go (and some legislators want to allow up to 3.7%).
At my salary, 3.2% is $4,600 more a year in taxes by living in Maryland. It’s one reason I ultimately choose Northern Virginia.
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here in our state of Washington the lack of a state income tax is what places us at #5. Our sales tax and property taxes are probably among the highest, but that cannot offset what is missing in income tax when the median statewide family income is now $89,430.
This is a list that will seem surprising to some. Methodology is contained at the beginning of the article.
To calculate the least and most tax-friendly states in America, researched income and sales tax rates by state using data from the Tax Foundation. Property tax rates were sourced from the U.S. Census Bureau.
Using expenditure and income data from the Bureau of Labor Statistics’ Consumer Expenditure Survey and income and housing data from the U.S. Census Bureau, constructed a hypothetical family with one dependent, a gross income of $94,003 (the national median income at the time of research), a home worth $320,900 (the median home price at the time of research) and annual taxable purchases of $22,203.
I'm curious with NY, if it takes into account that NYC and Yonkers has their own income tax, in a way the rest of the state doesn't. so, I'm wondering if that was considered in the percentage?
Does this also cover local income taxes? There’s no way Maryland is only $689 more in taxes than Virginia when there’s a 3.2% local income tax almost everywhere you go (and some legislators want to allow up to 3.7%).
At my salary, 3.2% is $4,600 more a year in taxes by living in Maryland. It’s one reason I ultimately choose Northern Virginia.
These state tax burden studies all have significant deficiencies. Median home value has to be done by state, not by national average. $300,000 for a home goes a lot further in Ohio than it would in California, for example. There is no inclusion of personal property tax, nor are estate & inheritance taxes taken into account.
These state tax burden studies all have significant deficiencies. Median home value has to be done by state, not by national average. $300,000 for a home goes a lot further in Ohio than it would in California, for example. There is no inclusion of personal property tax, nor are estate & inheritance taxes taken into account.
I agree and would go even farther and mention it should be by metro area. We've seen the differences in property values across metro (and rural) areas. Property taxes arent uniform across an entire state often and that can be amplified in the differences in property values.
The fast-growing states usually have no state income tax (Florida, Texas, Nevada, Arizona). North Carolina, South Carolina, and Georgia are growing fast without the no state income tax.
The fast-growing states usually have no state income tax (Florida, Texas, Nevada, Arizona). North Carolina, South Carolina, and Georgia are growing fast without the no state income tax.
Arizona has a state income tax, however, it's flat, and rather low (2.5%).
here in our state of Washington the lack of a state income tax is what places us at #5. Our sales tax and property taxes are probably among the highest, but that cannot offset what is missing in income tax when the median statewide family income is now $89,430.
The new capital gains tax makes WA less appealing than it used to be. :/
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