Best States For US Taxpayers Named
March 19, 2014 Taxation in USA
WASHINGTON D.C. – New research has confirmed that state and local taxes can make significant differences in the quality of life in the USA.
On March 18th the consumer group WalletHub released the result of new research into the overall tax burden faced by households residing in different states in the USA, determining the “best states to be a taxpayer”.
The outcome of the report was based on the average rates of local and state incomes taxes, vehicles taxes, sales taxes, consumption taxes, and property taxes applied in each state.
Analyzing the tax obligations faced across the country, the researchers concluded that the states with the lowest average annual tax obligations for an ordinary household are Wyoming and Alaska, with cumulative payments of USD 2 365 and USD 2 791, respectively, which are approximately 66 percent below the national average, estimated to be USD 7 000 per year.
The two states with the highest annual tax obligations for households are California and New York, at USD 9 509 and USD 9 718 respectively, a level 36 percent and 39 percent higher than the national average.
The authors of the report acknowledged that rate of taxes is not the only factor determining the wellbeing of taxpayers, and if the cost of living and the buying power are taken into consideration, then the two “best states to be a taxpayer” are Wyoming and Nevada, while the worst were still California and New York.
Photo by: Chris Potter