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The best and worst states for taxes

B

Brutuskend

Lifer
We all pay Uncle Sam the same no matter where we live, but property, gasoline, tobacco and sales taxes are all over the map.

By Rick VanderKnyff

If you live in Maine, New York, Connecticut or Washington, D.C., you are a big spender at tax time, like it or not. Alaska or Alabama? You get to keep a bigger slice of what you make.

While the IRS tends to monopolize our attention when it comes to taxes, it's not the only government agency with its hand out. Many of the taxes that command a piece of our income are collected at the state and local level, and they vary widely.
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Link to the full story

 
I think it'd be interesting to compare those statistics with statistics on how much federal tax money goes to each state for every dollar the state's residents pay in federal taxes. That might be a clue as to why some states have such a heavy tax burden.

I know states like NJ, NY, CT, CA get a lot less from their federal tax dollars, and states like AL, MS, etc get a lot more from their federal tax dollars. It's interesting actually, the states that you'd expect to oppose socialism the most benefit the most from the redistribution of income in this country.
 
There's a reason states like Alabama get to keep more from taxes. It's a motivation to live there. Have you ever been to Alabama? It would take ALOT of money to convince me to go there for more than a short period of time, and I don't know if you could convince me to live there.
 
Originally posted by: thraashman
There's a reason states like Alabama get to keep more from taxes. It's a motivation to live there. Have you ever been to Alabama? It would take ALOT of money to convince me to go there for more than a short period of time, and I don't know if you could convince me to live there.
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Actually, Alabama is no different that any other state. There are parts that are great to live in and there are parts that I wouldn't even want to visit. Alabama's biggest problem is that they screwed themselves in attracting business a long time ago (they had first dibs on the airport now in Atlanta and turned it away for example) and so they still feel the reprecussions today. They are getting better by attracting Japanese car manufacturers but they still have serious issues to contend with.
 
I live in CT...it doesn't seem all that bad.

Edit: The taxes aren't bad. Living in CT on the other hand...
 
Alaska ftw!

Not only do we have the smallest tax bill (unless you smoke, in which case we tax the hell out of you), the article doesnt' even mention the annual kickback we get from the state's oil investments. I actually live here at a profit!

 
I was just in NJ last week. Gas was more than 30 cents a gallon cheaper.... Why? taxes in NY.
Where I'm at in NY, our property taxes (county, school, etc.) are about 5-6% of the actual market price of our homes.
Pretty much everything except uncooked food is taxed. Clothing is taxed (anywhere from 8% to 8.75% depending on where you live in this state.) Bottled water - taxed. Electricity - taxed. All utilities - taxed.

However, when I was in NJ, I noticed a few peculiar taxes (in the form of licenses) - wtf, you have to register to own a guinea pig?! A guinea pig or a russian dwarf hamster qualify as "exotic" pets that require you to send in an anual fee??!

However, I suppose it should be noted that because of higher taxes in NY, I get to deduct those taxes from my income, reducing the amount I owe to the federal government. Thanks, NY, for helping me save money :roll:
 
For Ohio, it says the base retail tax is 5.5%, but it may vary locally. In Columbus, it's 6.75%. I've looked at a map divided by county that listed the tax rate; I don't remember the exact number, but I think there were less than 6 that had a rate of 5.5%. Point is, I understand why they listed the base rate, but it isn't very representative of the retail tax in Ohio, likely true for many other states as well.

Interesting read though, thanks OP.
 
Found this at www.taxfoundation.org

Way to go New Mexico!

Expenditures
Per Dollar of
State Taxes Rank

Ala. $1.69 6
Alaska $1.89 2
Ariz. $1.23 21
Ark. $1.47 13
Calif. $0.78 43
Colo. $0.80 41
Conn. $0.65 48
Del. $0.82 40
Fla. $1.00 32
Ga. $0.95 36
Hawaii $1.58 9
Idaho $1.32 18
Ill. $0.73 45
Ind. $0.96 35
Iowa $1.06 29
Kans. $1.13 25
Ky. $1.52 10
La. $1.47 14
Maine $1.36 16
Md. $1.34 17
Mass. $0.78 44
Mich. $0.86 38
Minn. $0.70 47
Miss. $1.83 3
Mo. $1.31 19
Mont. $1.60 7
Nebr. $1.06 30
Nev. $0.70 46
N.H. $0.64 49
N.J. $0.57 50
N.M. $1.99 1
NY. $0.80 42
N.C. $1.09 26
N.D. $1.75 5
Ohio $1.02 31
Okla. $1.48 12
Ore. $1.00 33
Pa. $1.08 27
R.I. $1.06 28
S.C. $1.36 15
S.D. $1.49 11
Tenn. $1.29 20
Tex. $0.98 34
Utah $1.19 22
Vt. $1.14 23
Va. $1.58 8
Wash. $0.90 37
W.Va. $1.82 4
Wis. $0.84 39
Wyo. $1.13 24
D.C. $6.59-

Federal Spending in Each State Per Dollar of
Federal Taxes, FY 2003
Source: Census Bureau; Tax Foundation.
 
Originally posted by: Nick5324
For Ohio, it says the base retail tax is 5.5%, but it may vary locally. In Columbus, it's 6.75%. I've looked at a map divided by county that listed the tax rate; I don't remember the exact number, but I think there were less than 6 that had a rate of 5.5%. Point is, I understand why they listed the base rate, but it isn't very representative of the retail tax in Ohio, likely true for many other states as well.

Interesting read though, thanks OP.
Click to expand...

Yep, the Alabama retail tax actually fluctuates anywhere between 8 and 10% depending on where you live instead of the 4% they list in the story.
 
Originally posted by: Queasy
Originally posted by: Nick5324
For Ohio, it says the base retail tax is 5.5%, but it may vary locally. In Columbus, it's 6.75%. I've looked at a map divided by county that listed the tax rate; I don't remember the exact number, but I think there were less than 6 that had a rate of 5.5%. Point is, I understand why they listed the base rate, but it isn't very representative of the retail tax in Ohio, likely true for many other states as well.

Interesting read though, thanks OP.
Click to expand...

Yep, the Alabama retail tax actually fluctuates anywhere between 8 and 10% depending on where you live instead of the 4% they list in the story.
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I assume 4% is the state rate, while individual cities tack their own rate on top of that.
 
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