Will stimulus, infrastructure lead to guaranteed higher taxes?
Forbes Media chairman Steve Forbes and Joe Lavorgna, former special assistant to President Trump, on how more stimulus and spending will impact the markets, economy and Americans’ wallets.
Americans living in blue states will pay some of the highest tax rates in the nation this year, according to a new study published Tuesday.
Illinois topped the list with an effective state and local tax rate of 15.01% imposed on the median U.S. household, according to WalletHub. It was closely followed by Connecticut, with an effective rate of 14.84%, and New York, with an effective rate of 14.08% on households earning about $63,218 annually.
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Pennsylvania has the fourth-highest tax rate in the nation, with a burden of about 13.97%, WalletHub found, while Kansas has the fifth-highest at 13.43%.
Americans living in those states pay roughly three times more than individuals living in the cheapest states.
On the other end of the spectrum, Alaska has the lowest effective tax rate of 5.84%, followed by Delaware at 6.25%, Montana at 7.11%, Nevada at 7.94% and Wyoming at 8.05%.
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Still, the analysis noted that low-income taxes don't necessarily translate into a small tax bill; for instance, Washington state is one of the few states that does not impose an income tax on its residents. But individuals who live in the state still spend about 8% of their annual income on sales and excise taxes. Similarly, Texans also don't pay any income tax, but spend about 1.8% of their income on real-estate taxes, one of the highest in the nation. Conversely, Californians spend about 5% of their total income on sales and excise taxes, but just 0.76% on real-estate taxes.
WalletHub conducted the analysis by comparing the 50 states and Washington across four areas of taxation: Real-estate, vehicle property, income and sales and excise.
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