March 31,2018
the staff of the Ridgewood blog
Ridgewood NJ, On April 18, Uncle Sam will once again take his cut from everyone’s earnings this past year. And many taxpayers are already wondering what that haircut on their finances will look like. However, with such a complex tax code further convoluted by the way taxes are imposed on Americans based on their individual household characteristics, it’s hard to tell unless you wrote the tax policies yourself.
To determine which states’ residents bear the biggest tax burdens, WalletHub’s analysts compared the 50 states across the three tax types that make up state tax burden — property taxes, individual income taxes, and sales and excise taxes — as a percentage of total personal income in the state. Read on for our findings, commentary from a panel of tax experts and a full description of our methodology
One simple ratio known as the “tax burden” helps cut through the confusion. Not to be confused with tax rates, which vary widely based on an individual’s particular circumstances, tax burden measures the exact proportion of total personal income that residents pay toward state and local taxes. And it isn’t uniform across the U.S., either.
Surprisingly New Jersey did not take the top spot as most over taxed state , in came in 7th worst ,bumped from 6th by fast decaying Connecticut that managed to tax two of its largest tax payers out of the state GE and Aetna. Of course this is before Governor Murphy gets his way pushing through his massive tax increases.
According to WalletHub’s analysts
1 New York total tax 12.94% property taxes 4.55% individual 4.76% sales and excise 3.63%
2 Hawaii total tax11.27% property taxes 2.11% individual 2.64% sales and excise 6.52%
3 Vermont total tax10.75% property taxes 4.96% individual 2.29% sales and excise 3.50%
4 Maine total tax10.73% property taxes 4.65% individual 2.58% sales and excise3.50%
5 Minnesota total tax10.24% property taxes 2.87% individual 3.59% sales and excise 3.78%
6 Connecticut total tax10.23% property taxes 4.16% individual 3.24% sales and excise 2.83%
7 New Jersey total tax10.14% property taxes 5.31% individual 2.32% sales and excise 2.51%
8 Rhode Island total tax10.09% property taxes 4.80% individual 2.15% sales and excise 3.14%
9 Illinois total tax10.00% property taxes 4.14% individual 2.66% sales and excise3.20%
10 California total tax 9.52% property taxes 2.72% individual 3.44% sales and excise 3.36%
