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Federal income taxes, of course, get the most headlines. But a number of other taxes can put a significant dent in one's wallet. A new report finds the amount of state and local taxes residents pay varies greatly by state.
The deadline to file personal income taxes is less than a week away. For many, that means a tax refund is not far behind. For others, it means paying a tax bill or kicking themselves for not withholding enough from their paychecks.
Federal income taxes, of course, get the most headlines. But a number of other taxes can put a significant dent in one’s wallet. The amount of state and local taxes residents pay varies greatly by state, as different jurisdictions tax property, food, gasoline, and other items at vastly different rates.
The consumer finance website WalletHub took a look at which states place the heaviest and lightest tax burdens on their residents, compiling a list of the Best and Worst States to be a Taxpayer. They threw in the District of Columbia, even though it’s not a state (the district was found to be the 18th best jurisdiction for taxpayers).
WalletHub looked at a variety of taxes to come up with an average state and local tax bill in each state. Alaska was found to be the “best state for taxpayers.” Taxpayers in Alaska pay just $2,993 per year in state and local taxes, on average. Next up was Delaware ($3,177) and Montana ($3,639).
Meanwhile, taxpayers in some states pay more than double what Alaskans pay. What follows are the nine states with the highest state and local taxes, according to WalletHub. Also included are average real estate and income tax bills and ranks.
9. Iowa
Average State and Local Taxes: $6,730
Real Estate Tax Rank: 38th ($2,542)
Income Tax Rank: 34th ($1,594)
8. Ohio
Average State and Local Taxes: $6,834
Real Estate Tax Rank: 40th ($2,677)
Income Tax Rank: 38th ($1,755)
7. Michigan
Average State and Local Taxes: $6,902
Real Estate Tax Rank: 44th ($3,168)
Income Tax Rank: 37th ($1,744)
6. New York
Average State and Local Taxes: $7,062
Real Estate Tax Rank: 41st ($2,734)
Income Tax Rank: 40th ($1,833)
5. Connecticut
Average State and Local Taxes: $7,115
Real Estate Tax Rank: 46th ($3,301)
Income Tax Rank: 19th ($1,182)
4. Rhode Island
Average State and Local Taxes: $7,159
Real Estate Tax Rank: 42nd ($2,779)
Income Tax Rank: 20th ($1,209)
3. Wisconsin
Average State and Local Taxes: $7,159
Real Estate Tax Rank: 48th ($3,398)
Income Tax Rank: 42nd ($1,871)
2. Nebraska
Average State and Local Taxes: $7,298
Real Estate Tax Rank: 45th ($3,228)
Income Tax Rank: 24th ($1,329)
1. Illinois
Average State and Local Taxes: $7,719
Real Estate Tax Rank: 50th ($3,939)
Income Tax Rank: 30th ($1,482)
Read WalletHub’s entire list here.