Taxachusetts wrongly named? - Tax burden per US state

[Imran Siddiqui]

http://money.cnn.com/pf/features/lists/taxesbystate2005/index.html

The Tax Foundation, a policy research group, estimated the average taxpayer's total state and local tax burden for 2005 in each of the 50 states and the District of Columbia. That burden reflects what residents pay in state and local income taxes, property taxes, sales taxes, luxury taxes and fuel taxes, among others. States below are ranked from least to most tax friendly.

Interesting stuff.

Top 5 tax heavy states (DC is 12.20%, btw):

Maine 13.00%
New York 12.00%
Hawaii 11.50%
Rhode Island 11.40%
Wisconsin 11.40%

Bottom 5 tax heavy states:

Alaska 6.40%
New Hampshire 7.40%
Delaware 8.00%
Tennessee 8.30%
Alabama 8.70%

Though the surprise is Massachusetts, with a state and local tax burden of 9.80% is tied for 30th in highest tax burden! You'll pay more state and local taxes in North Carolina, Mississippi, or Wyoming than you will in Massachusetts!

[Dinner]

Wow, California is right near the average (0.2% higher but still very near) for taxes. I thought we'd be much higher then that. We're only the 20th highest in taxes.

[MRT144]

washington doesnt have income tax, britches

[chequita guevara]

It's funny how people get all up in arms about income tax, but ignore all the rest.

[Imran Siddiqui]

Originally posted by Oerdin
Wow, California is right near the average (0.2% higher but still very near) for taxes. I thought we'd be much higher then that. We're only the 20th highest in taxes.

I think you may be balanced out by lower property taxes and stuff out in the country areas. I'm sure an area like San Diego has much higher property and sales taxes.

[MRT144]

sales tax in california is the same across the board iirc.

[Whoha]

hmm thought South Dakota was lower then merely 45th.

[Dinner]

Originally posted by MRT144
washington doesnt have income tax, britches

That's ok because you guys have crap roads and still haven't figured out how to build side walks.

[Dinner]

Originally posted by Imran Siddiqui

I think you may be balanced out by lower property taxes and stuff out in the country areas. I'm sure an area like San Diego has much higher property and sales taxes.

Property taxes are pretty low as a percentage of value but because the values are so high you get screwed, screwed, screwed by the tax man. I currently have a partial payment of $2897.26 due on the 15th of this month. with another payment do in June.

Our local sales tax is 0.5% which isn't to bad since the city charges something like a 12% hotel fee tax. The hotel tax hits the tourists and the out of town convention goers so we locals like it but the tourists naturally don't. Still there are enough hotels in the city where prices are still lower then most places even with the tax.

[MRT144]

Originally posted by Oerdin


That's ok because you guys have crap roads and still haven't figured out how to build side walks.

but we like it that way

[DanS]

Massachusetts has been cutting taxes for a long time. The DC gov't says it's going to start cutting taxes too. It's important to the city to cut taxes, given that its nearest neighbors have ~ 2 to 2.5 percentage points lower taxes.

[chequita guevara]

Florida doesn't have an income tax either. Tourists pay for our government.

[Imran Siddiqui]

Which is why the Florida government doesn't care about you .

[The Emperor Fabulous]

The reason its called Taxachusetts is not because of the cost of the taxes, but the fact that there seems to be a tax on everything.

But its still nice to know

We were the forerunners of the policy in the 1700s of "No Taxation without Representation". Now, we have representation...and boy, do we have taxation.

[Zkribbler]

Originally posted by Imran Siddiqui
I think you may be balanced out by lower property taxes and stuff out in the country areas. I'm sure an area like San Diego has much higher property and sales taxes.

Property taxes are the often overlooked tax break. After you buy property, the assessment is only permitted to increase a maximum of 3% per year. This keeps property tax rates artifically low statewide.

Although there's a statewide sales tax, cities may impose a local increase. IIRC Los Angeles's is 1.5% higher than the statewide rate. I'm pretty sure San Diego's is not as high.