Consumer finance site WalletHub has released a report on the states with the highest and lowest taxes.
In the online report, WalletHub compared the 50 states as well as the District of Columbia to the national median in terms of 10 different types of taxation, ranging from state and local income taxes to alcohol and telecomm taxes.
States with the Lowest Taxes (vs. National Average):
1. Wyoming (-66%)
2. Alaska (-60%)
3. Nevada (-52%)
4. Florida (-48%)
5. South Dakota (-46%)
6. Washington (-45%)
7. Texas (-25%)
8. Delaware (-25%)
9. North Dakota (-20%)
10. Colorado (-18%)
States with the Highest Taxes (vs. National Average):
1. Maine (+24%)
2. Iowa (+26%)
3. New Jersey (+27%)
4. Vermont (+27%)
5. Wisconsin (+29%)
6. Illinois (+29%)
7. Connecticut (+31%)
8. Nebraska (+36%)
9. California (+37%)
10. New York (+40%)
WalletHub also reported that the average family pays almost $7,000 in state and local taxes per year. Taxpayers in the states with the highest taxes pay four times more than those in the states with the lowest taxes. Red states impose lower taxes with an aggregate score of 19.9, compared to 31.4 for blue states. The lower the score the more tax friendly a state is, according to the site.
Michael Cohn is the editor-in-chief of AccountingToday.com.
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