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US states with the highest and lowest tax rates

Americans living in blue (traditionally Democratic) states will face some of the highest tax rates in the country this year, according to a new study released March 9. Fox Business writes about it.

Штаты США с самыми высокими и низкими налоговыми ставками

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Illinois topped the list with an effective state and local tax rate of 15.01% for the average US household, according to WalletHub. It is followed by Connecticut with an effective rate of 14.84% and New York with a rate of 14.08% for households earning about $63,218 per year.

The state of Pennsylvania is in fourth place with a rate of about 13.97%, while Kansas is fifth with 13.43%. Residents of these states pay about three times as much as those living in the cheapest states.

At 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%.

However, the analysis showed that low income taxes do not necessarily translate into a small tax bill; for example, the state of Washington is one of the few states that does not impose income tax on residents. But people living in the state still spend about 8% of their annual income on sales and excise taxes. Texans pay no income tax, but spend about 1.8% of their income on property taxes, which are among the highest in the country. Conversely, Californians spend about 5% of their total income on sales and excise taxes, but only 0.76% on property taxes.

WalletHub did an analysis comparing the 50 states and Washington across four areas of taxation: real estate, vehicle ownership, income, sales, and excises.

Here is the complete list:

Alaska – 5.84%
Delaware – 6.25%
Montana – 7.11%
Nevada – 7.94%
Wyoming – 8.05%
Florida – 8.23%
Utah – 8.34%
Idaho – 8.43%
Colorado – 8.54%
Tennessee – 8.72%
California – 8.96%
South Carolina – 8.99%
Oregon – 8.99%
District of Columbia – 9.04%
Alabama – 9.1%
Arizona – 9.52%
West Virginia – 9.69%
North Dakota – 10.03%
New Hampshire – 10.06%
New Mexico – 10.54%
Georgia – 10.57%
North Carolina – 10.61%
Louisiana – 10.63%
Hawaii – 10.66%
Virginia – 10.73%
Massachusetts – 10.9%
South Dakota – 11.16%
Missouri – 11.25%
Minnesota – 11.27%
Arkansas – 11.28%
Oklahoma – 11.44%
Maryland – 11.49%
Vermont – 11.62%
Indiana – 11.75%
Maine – 11.81%
Mississippi – 11.97%
Washington – 12.02%
Michigan – 12.22%
Kentucky – 12.48%
Texas – 12.79%
Rhode Island – 12.82%
New Jersey – 12.84%
Ohio – 13.18%
Iowa – 13.18%
Wisconsin – 13.22%
Nebraska – 13.27%
Kansas – 13.43%
Pennsylvania – 13.97%
New York – 14.08%
Connecticut – 14.84%
Illinois – 15.01%

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