Best and Worst States for Taxes

I live in one of the higher tax states. It's not the worst, but it is bad.
I will say we have tons of jobs and many of them are well paying.

When I lived in one of the lower taxed states jobs were much more scarce, and I felt like
for most the overall quality of living was lower. Isn't it interesting how two states, right next to each other can
differ so much?

How did your state fare with taxes?
finance.yahoo.com...


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a reply to: JAGStorm

I don't know how accurate that chart is. Many states have "fees" which are taxes by another name.

I'm in SC, I find the tax situation much better than SC, more job opportunities, and a much higher quality of life for the money than what I would have in MA with the 30% increase in pay.

a reply to: JAGStorm

My state ( NY ) is atrocious with taxes. Property taxes are generally the worst of it. I'm a bit surprised to see PA ranked lower than us however.

a reply to: JAGStorm


Does the chart include all taxes or just state income tax?
Property tax
Sales tax
Rain tax

I'm 35th and I was wondering if I should be pissed off....lol

a reply to: Bluntone22

What it won't include I am sure are "fees" that are really taxes by another name.

I honestly thought I'd be 1 or 2, I'm curious how they calculated this.

a reply to: OccamsRazor04

Taxes are just one factor.
Real estate prices.
Food prices.

California is 12th in taxes but you can't afford the expenses to live there.

I'd like to know their rubric. Was the map put out the be state of California???

I would argue that Texas is a tax haven, due the fact that the state government uses a property tax rather than a state income tax for it's source of revenue.

That gives the state a lot more revenue to build a budget with. Illegal aliens don't register to pay income taxes, but they do pay property taxes in the form of increased rent. So while illegals in other parts of the US are avoiding paying local taxes, states with sales tax and property tax are able to tap into this revenue stream even while they remain tax scofflaws.

I'm in IL.... dead last at 51. I'm assuming 51 since they are counting DC as there are only 50 states.

Our state income tax isn't too bad, but it is the property taxes that are killer. I live relatively modest home and my tax bill is about $13,000/yr. Wife and I were thinking of buying a bigger home, but the taxes in our price range in my community could be upwards of $30k/yr. Maybe even pushing $40k.

Given we are hoping to retire early / cut back on working, it isn't the mortgage that scares us but the property taxes since those never really go down. Even if we paid cash or paid the mortgage off, we'd still be stuck paying like $3k a month just in taxes!

The sad part is the tax bills are so high so we can fund the lavish retirements of the teachers, police, & firemen....

Ridiculous.

originally posted by: Graysen
I would argue that Texas is a tax haven, due the fact that the state government uses a property tax rather than a state income tax for it's source of revenue.

Yeah, Texas took me by surprise, since Texans always seem to be so proud of their (apparent) uncompromising ideology of small government and low taxes.

But you know what they say... The Greatest Trick the Devil (government) Ever Pulled Was Convincing the World (Texans) He (high taxes) Didn’t Exist.

a reply to: JAGStorm

Yeah that's not correct it has California on the best list .

a reply to: JAGStorm

this chart is backwards. this would mean California is a better state when it comes to taxes than Mass?

this must be an all encompassing tax metrics

a reply to: JAGStorm

Illinois is the worst, that's why there's a mass Exodus happening right now as we speak.

a reply to: JAGStorm

finance.yahoo.com...

WalletHub looked at four different types of taxation: Real-Estate Tax, Vehicle Property Tax, Income Tax, and Sales & Excise Tax.

Gas also taxes play a role. Alaska pays the lowest per gallon, followed by Missouri, Mississippi, New Mexico, and Arizona. Pennsylvania pays the highest amount, with coastal states California, Washington, Hawaii, and New York not far behind.

Alaska pays the second highest base price behind only Hawaii at the pump, though. Alaska isn't a bargain, to be honest... the import and transport of goods drive base prices through the roof here, and our winter heating and lighting bills are outlandish, so while they rank us the best where taxes are concerned, out cost of living rivals NY, CA, and MA for most expensive, albeit well cheaper than Hawaii or DC. If we had tax burdens similar to those states, Alaska would be by far the most expensive state to reside in.

originally posted by: Bluntone22
a reply to: OccamsRazor04

Taxes are just one factor.
Real estate prices.
Food prices.

California is 12th in taxes but you can't afford the expenses to live there.

So WA has zero state tax, sales tax is about 8%, property tax can not exceed 1% of the value...so how is it worst than OR that doesn't have sales tax, but taxes the crap out of everything else including gas. Property tax is about 1.2% and state tax is some of the highest in the country.

originally posted by: odzeandennz
a reply to: JAGStorm

this chart is backwards. this would mean California is a better state when it comes to taxes than Mass?

this must be an all encompassing tax metrics

My bad, I forgot to add the link, but it's there now.

That's what I was thinking. Taxes are only one part of the equation, and California shocked me the most.

a reply to: Edumakated

I'm in IL.... dead last at 51.

Illinois is dead last, but there are high paying jobs there, some very high paying. Housing is also considered very cheap compared to California.

Can confirm NE.

Ridiculous here.

a reply to: JAGStorm


I think I figured it out, it's not taking into account Federal tax money sent back to the state. California, Illinois and my home state send more to the Federal Government than they get back. Once you factor that in it makes your effective tax rate by state more closer to the painful reality.

originally posted by: Bluntone22
a reply to: JAGStorm


Does the chart include all taxes or just state income tax?
Property tax
Sales tax
Rain tax

I'm 35th and I was wondering if I should be pissed off....lol

WalletHub looked at four different types of taxation: Real-Estate Tax, Vehicle Property Tax, Income Tax, and Sales & Excise Tax.