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Economy => Economics => Topic started by: BIT-Sharon on June 11, 2015, 01:56:28 AM



Title: What U.S. states have the highest and lowest taxes?
Post by: BIT-Sharon on June 11, 2015, 01:56:28 AM
10 states with the lowest average annual tax burden:

1. Wyoming, $2,365
2. Alaska, $2,791
3. Nevada, $3,370
4. Florida, $3,648
5. South Dakota, $3,766
6. Washington (state), $3,823
7. Texas, $5,193
8. Delaware, $5,195
9. North Dakota, $5,588
10. New Mexico, $5,822

10 states with the highest average annual tax burden:

1. New York, $9,718
2. California, $9,509
3. Nebraska, $9,450
4. Connecticut, $9,099
5. Illinois, $9,006
6. Wisconsin, $8,975
7. Vermont, $8,838
8. New Jersey, $8,830
9. Iowa, $8,788
10. Maine, $8,622

If you hate paying taxes, pay attention to where you live. Residents of the nation's lowest-tax states pay less than one-quarter of the levies contributed by those in the highest-tax states. And that's even when they earn the same amount and spend the same amount on everything from housing to beer, according to an analysis by personal finance site WalletHub.


Title: Re: What U.S. states have the highest and lowest taxes?
Post by: bryant.coleman on June 11, 2015, 03:06:26 AM
No surprise there. Residents living in the Democrat-ruled states (where the welfare payments such as child benefits are quite high) pay the highest amount of taxes, while those living in the GOP-ruled states pay the lowest rates. But we should take the average income in to the picture as well. For example, the average annual salary in California is much higher, when compared to that in Wyoming.


Title: Re: What U.S. states have the highest and lowest taxes?
Post by: Amph on June 11, 2015, 06:51:25 AM
and why many do not travel, and go in the other side, if the difference is so big? it should not be so difficult for a usa citizen to move between states, and maybe find a new location to live, instead of wasting money in his current residence...


Title: Re: What U.S. states have the highest and lowest taxes?
Post by: bryant.coleman on June 11, 2015, 08:30:46 AM
and why many do not travel, and go in the other side, if the difference is so big? it should be so difficult for a usa citizen to move between states, and maybe find a new location to live, instead of wasting money in his current residence...

It is not practical in most of the cases. Suppose you are employed with an IT firm in Silicon Valley, California. The tax rates in California are extremely high, but you can't relocate yourself to low-tax states such as Arizona, as it will impede with your ability to work. Unless the employer relocates to these low-tax states, the employees can't take a decisison on this.


Title: Re: What U.S. states have the highest and lowest taxes?
Post by: countryfree on June 12, 2015, 10:53:54 PM
10 states with the lowest average annual tax burden:

1. Wyoming, $2,365
2. Alaska, $2,791
3. Nevada, $3,370
4. Florida, $3,648
5. South Dakota, $3,766
6. Washington (state), $3,823
7. Texas, $5,193
8. Delaware, $5,195
9. North Dakota, $5,588
10. New Mexico, $5,822

10 states with the highest average annual tax burden:

1. New York, $9,718
2. California, $9,509
3. Nebraska, $9,450
4. Connecticut, $9,099
5. Illinois, $9,006
6. Wisconsin, $8,975
7. Vermont, $8,838
8. New Jersey, $8,830
9. Iowa, $8,788
10. Maine, $8,622

If you hate paying taxes, pay attention to where you live. Residents of the nation's lowest-tax states pay less than one-quarter of the levies contributed by those in the highest-tax states. And that's even when they earn the same amount and spend the same amount on everything from housing to beer, according to an analysis by personal finance site WalletHub.

I don't get those numbers. I suppose they show the average income tax paid by resident? If so, they don't mean tax is higher in New York than in Wyoming, but that the people living in NY are richer. Tax rate could be the same.


Title: Re: What U.S. states have the highest and lowest taxes?
Post by: gentlemand on June 12, 2015, 11:07:22 PM

I don't get those numbers. I suppose they show the average income tax paid by resident? If so, they don't mean tax is higher in New York than in Wyoming, but that the people living in NY are richer. Tax rate could be the same.

Those figures might well include property taxes. Property tax can be absolutely insane in the US depending on your state. It also seems to be retrospective as well. Those $100 houses in Detroit often come with back payment burden of several thousand.

Coming from tiny wee Europe, the US state system seems to be a giant pain up the arse to me. I want uniform taxes wherever I go in my country, let alone all that crap about changing driving licences and car titles etc.



Title: Re: What U.S. states have the highest and lowest taxes?
Post by: knowhow on June 12, 2015, 11:17:11 PM
that happens the same way at brazil... there is some regions that cost 4xtimes more than others just because is a big city...the thing is you can choose where to live but need to get some stability or some good plan to moove from a region you know all and everyone to go to a big city... some people just doesnt addapt the change.


Title: Re: What U.S. states have the highest and lowest taxes?
Post by: Possum577 on June 13, 2015, 06:13:14 AM
This list doesn't tell us anything. You need to look at the income tax rate per state. Looking at average taxes paid is very misleading. California and New York have much higher incomes than Wyoming or the other "low tax" states.


Title: Re: What U.S. states have the highest and lowest taxes?
Post by: bryant.coleman on June 13, 2015, 06:46:18 AM
This list doesn't tell us anything. You need to look at the income tax rate per state. Looking at average taxes paid is very misleading. California and New York have much higher incomes than Wyoming or the other "low tax" states.

Agree with that. But still, it seems that states such as California and New York are having the maximum income tax rates. And states such as Wyoming, Texas and Washington are having the lowest rates:

http://taxfoundation.org/sites/taxfoundation.org/files/docs/State%20income%20tax%20rates_2.png


Title: Re: What U.S. states have the highest and lowest taxes?
Post by: Amph on June 13, 2015, 06:51:05 AM
This list doesn't tell us anything. You need to look at the income tax rate per state. Looking at average taxes paid is very misleading. California and New York have much higher incomes than Wyoming or the other "low tax" states.

Agree with that. But still, it seems that states such as California and New York are having the maximum income tax rates. And states such as Wyoming, Texas and Washington are having the lowest rates:

snip

i think it depends on how much mining activity there is, thus some place are more taxed then other, it's not a coincidence, that the taxation regime, is started in the usa, where the mining operations were the biggest ones, in comparison with other places


Title: Re: What U.S. states have the highest and lowest taxes?
Post by: Harry Hood on June 13, 2015, 03:17:43 PM
This list doesn't tell us anything. You need to look at the income tax rate per state. Looking at average taxes paid is very misleading. California and New York have much higher incomes than Wyoming or the other "low tax" states.

Agree with that. But still, it seems that states such as California and New York are having the maximum income tax rates. And states such as Wyoming, Texas and Washington are having the lowest rates:


This is a good graphic. You'll notice that California rises to the top (where it was 2nd in the OP's list) and a bunch of new states (Oregon, Minnesota, and Iowa) have higher tax rates than New York. The graphic changes the list quite a bit!

What's possibly more interesting is that for California the rate of taxation is highest and the population of California is in the highest (one of the highest).  Speaks a lot to the level of services or the mismanagement of tax dollars in that state.

What is the income level that the average taxes paid in the OP is based off of?


Title: Re: What U.S. states have the highest and lowest taxes?
Post by: countryfree on June 13, 2015, 05:45:34 PM

Thanks for graphic. This makes it clear at least. To those unfamiliar to the US system, it compares the state income tax, but US residents must also pay the federal income tax, but the real pain in the US is property tax. It can be higher than income tax for many retirees in some states.


Title: Re: What U.S. states have the highest and lowest taxes?
Post by: knowhow on June 14, 2015, 12:28:33 AM
well location has a price soo with those map you can choose better where is better to live without worry with taxes


Title: Re: What U.S. states have the highest and lowest taxes?
Post by: Buttknuckle on June 14, 2015, 03:02:52 AM
and why many do not travel, and go in the other side, if the difference is so big? it should not be so difficult for a usa citizen to move between states, and maybe find a new location to live, instead of wasting money in his current residence...

It is easy to say, but for example California alone is likely bigger than your whole country.  If I move to a cheaper place, it will be hard to visit family and friends.  Plus most companies adjust for cost of living down to the penny, so it isn't like you will really make that much more.


Title: Re: What U.S. states have the highest and lowest taxes?
Post by: PenguinFire on June 14, 2015, 03:17:31 AM
Dang.  As if living in Hawaii wasn't hard and expensive enough.  I am like a moderate liberal but stats like these make me think maybe taxing income so high is counterproductive as it depresses local and state economies.


Title: Re: What U.S. states have the highest and lowest taxes?
Post by: Amph on June 14, 2015, 07:25:05 AM
and why many do not travel, and go in the other side, if the difference is so big? it should not be so difficult for a usa citizen to move between states, and maybe find a new location to live, instead of wasting money in his current residence...

It is easy to say, but for example California alone is likely bigger than your whole country.  If I move to a cheaper place, it will be hard to visit family and friends.  Plus most companies adjust for cost of living down to the penny, so it isn't like you will really make that much more.

still if you've the money i think you can do it, we are not talking about going abroad, but just in another USA country, there are many around the world that leave their native nation to go abroad to find work, and you're telling me that it is not that possible to do it inside the same state?

i can't believe this, i think they are just lazy people that don't like to deal with any kind of risk


Title: Re: What U.S. states have the highest and lowest taxes?
Post by: aso118 on June 14, 2015, 02:50:36 PM
and why many do not travel, and go in the other side, if the difference is so big? it should not be so difficult for a usa citizen to move between states, and maybe find a new location to live, instead of wasting money in his current residence...

Usually, the location of your job decides where you live. It might be tough for the salaried class to just pack up your bags and move.  :)


Title: Re: What U.S. states have the highest and lowest taxes?
Post by: AceWallen on June 14, 2015, 08:11:02 PM
funny, i live in California, and i could swear we were #1! :D it's definitely one of the biggest drawbacks to living here... but the weather, cities, landscapes and beaches, ganja -- make it worth it, for sure.


Title: Re: What U.S. states have the highest and lowest taxes?
Post by: 98problems on June 14, 2015, 08:17:27 PM
funny, i live in California, and i could swear we were #1! :D it's definitely one of the biggest drawbacks to living here... but the weather, cities, landscapes and beaches, ganja -- make it worth it, for sure.
well its not a big difference between first and second place, i must admit that you have to pay pretty huge taxes


Title: Re: What U.S. states have the highest and lowest taxes?
Post by: bryant.coleman on June 15, 2015, 09:01:07 AM
funny, i live in California, and i could swear we were #1! :D it's definitely one of the biggest drawbacks to living here... but the weather, cities, landscapes and beaches, ganja -- make it worth it, for sure.

In that case, why don't you relocate to Florida?

1. The state income tax is 0%, compared to 13.3% in CA.
2. The beaches are much better than those in CA.
3. The Ganja is of the purest quality.
4. Miami is as good as SF or LA.
5. And finally, the weather. No one can beat Florida, as far as the weather is concerned.  ;D


Title: Re: What U.S. states have the highest and lowest taxes?
Post by: gentlemand on June 15, 2015, 12:05:28 PM

In that case, why don't you relocate to Florida?

1. The state income tax is 0%, compared to 13.3% in CA.
2. The beaches are much better than those in CA.
3. The Ganja is of the purest quality.
4. Miami is as good as SF or LA.
5. And finally, the weather. No one can beat Florida, as far as the weather is concerned.  ;D

I'm not American, but I've lurked in both places. California kicked the pants off Florida by a country mile. Florida was flat, sweaty and I got eaten alive by the insects. California oozed variety and beauty in comparison.

I think I'd rather pay the extra to live in West but I don't know how much more expensive it really is.


Title: Re: What U.S. states have the highest and lowest taxes?
Post by: Hazir on June 15, 2015, 01:59:22 PM

In that case, why don't you relocate to Florida?

1. The state income tax is 0%, compared to 13.3% in CA.
2. The beaches are much better than those in CA.
3. The Ganja is of the purest quality.
4. Miami is as good as SF or LA.
5. And finally, the weather. No one can beat Florida, as far as the weather is concerned.  ;D

I'm not American, but I've lurked in both places. California kicked the pants off Florida by a country mile. Florida was flat, sweaty and I got eaten alive by the insects. California oozed variety and beauty in comparison.

I think I'd rather pay the extra to live in West but I don't know how much more expensive it really is.
Honestly, there are better places to live in the US that California or Florida. In california you can find yourself victim of an earthquake and in Florida there are nasty hurricanes.
I really pick some continental place instead, suitable for quiet and slow life. You can always spend a vacation in California or Florida instead. I think lowering your taxes is far more important.
And every State is better than Europe in the term of taxes...


Title: Re: What U.S. states have the highest and lowest taxes?
Post by: stallion on June 15, 2015, 02:54:36 PM
that happens the same way at brazil... there is some regions that cost 4xtimes more than others just because is a big city...the thing is you can choose where to live but need to get some stability or some good plan to moove from a region you know all and everyone to go to a big city... some people just doesnt addapt the change.

You're from Brazil? How's the economy?


Title: Re: What U.S. states have the highest and lowest taxes?
Post by: bryant.coleman on June 15, 2015, 03:50:19 PM
I'm not American, but I've lurked in both places. California kicked the pants off Florida by a country mile. Florida was flat, sweaty and I got eaten alive by the insects. California oozed variety and beauty in comparison.

At least, Florida is not bankrupt like California. I was about to suggest Hawaii, but then I noticed the 11% state income tax rate there. Unfortunate. Hawaii seems to be a better place, when compared to both California and Florida. Other than these three states, I don't think there is any American state with mild climate and cool beaches.