Top 10 States With the Highest Taxes
Top 10 States With the Highest Taxes
No one enjoys paying taxes and just about everyone feels like they pay too much. However, there are definitely some people that pay more than others, like the nation’s top 1 percent of earners for example. However, when it comes to high tax rates, how much you earn is not the only factor in how much you end up paying. In fact, where you choose to live also plays a big role in how high or low your tax rate is, according to a recent study by WalletHub. WalletHub used four factors to come up with its results: income taxes, real estate taxes, sales and excise taxes and vehicle property taxes. The following are the 10 states with the highest taxes in 2016, based on those factors.
With an average annual state and local tax bill of $7,836, Illinois is 2016’s worst state for taxes. The Prairie State’s annual average is a whopping 35.83 percent higher than the rest of the country’s. It is the worst state for real estate taxes and comes in at number 30 for income taxes.
Taxpayers in the Cornhusker State pay an average annual state and local tax bill of $7,466, a 29.41 percent increase over the nation’s average. High state and excise taxes, as well as real estate and vehicle property taxes make Nebraska rough on taxpayers.
Wisconsin comes in at number three thanks to both high income taxes and real estate taxes. With an average annual state and local tax bill of $7,316 the Badger State is nearly 23 percent higher than the national average.
The Constitution State ranks poorly as well, but just $7 worse than Rhode Island Both vehicle property taxes and real estate taxes are some of the worst in the country. Average annual state and local tax bill is $7,262.
5. Rhode Island
The Ocean State is slightly higher than New York, with an average percentage that’s 25.77 percent more than the national average. Taxpayers pay an average of $7,255, thanks to the worst vehicle property tax rate in the nation, high real estate taxes and about average income and sales taxes.
6. New York
New York is known for its high cost of living so it’s no surprise it shows up on the list at number six. With an average amount of $7,211 the Empire State is 25 percent above the national average.
Michigan comes in at a rate that’s 22.28 percent higher than the national average, which equals out to an average amount of $7,054 a year. Both income and real estate taxes are high compared to the rest of the country.
Ohio’s average tax bill is $6,991, which is 21 percent more than the average, thanks in large part to its high real estate taxes, which rank number 40 in the nation. The state does score well on income taxes; as it comes in lower than the national average.
Coming in at No. 9 is Iowa, which has an average tax rate of 19.12 percent higher than the national average, with $6,872 in average annual state and local taxes.
10. New Jersey
Living in the Garden State will cost you more. Even though New Jersey does not have a vehicle property tax, the real estate taxes are among the worst. With an average real estate tax bill greater than $4,000. The state’s average annual state and local taxes are $6,675, which is 15.7 percent higher than the national average.
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Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
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