Which States have the Highest Taxes?
Paying taxes is necessary for us to benefit from government services
. There's no fixed rate when one is paying taxes, because it depends on many factors. Taxes such as income tax, sales tax, and property tax have different rates in different states. For a resident or a business owner, it is necessary to be updated about state tax rates.
According to Forbes.com as of year 2008, the top ten states that have the highest taxes are, Pennsylvania, Wyoming, Washington, Massachusetts, New York, New Jersey, Minnesota, Connecticut, Hawaii, and Vermont.
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Free Tax Filing SoftwarePennsylvania
The good news if you live and own property in Pennsylvania is that you don't have to pay so much on property taxes. The bad news is that the state has a very high rate for sales tax. In fact, the sales tax accounts for more than half of the total amount of taxes that residents have to pay. Pennsylvania residents are required to pay an average of $2,223.
Wyoming
Just like Pennsylvania, Wyoming doesn't have high property taxes, nor does it have taxes on state income and public utilities. In addition, the state has low tax rates on alcohol and cigarettes. So how did Wyoming get on this list? The sales tax makes up for it. In Wyoming, the average tax burden is $2,357 per person.
Washington
The state of Washington has a whopping sales tax of $2,181 per person. Add that to the low property tax and no individual income tax, and it comes to a total of $2,553. Every Washington resident needs to pay an average of $2,553 for personal taxes.
Massachusetts
Apparently, the state government of Massachusetts charges more on personal income taxes than on sales and property taxes. The sales tax is about $929 per person and the personal income tax is about $1,925 per person. Massachusetts has an average tax amount of $2,953 per person.
Biz Owner:
Business Tax QuestionsNew York
A lot of people think New York has the highest taxes, perhaps this year, but in 2008 the state was ranked sixth. Last year, the state's average tax amount per person was $3,019. Expect that amount to increase this year, with the NY Governor Patterson proposing taxes on candy bars and soda.
New Jersey
New Jersey has an estimated $3,024 tax burden per person. A big percentage of that amount comes from personal income tax. It's pretty well-known that most New Jersey residents earn more than the residents from other states, and thus they have to pay more on income taxes.
Minnesota
Minnesota is one of the few states that have both high income taxes and high sales taxes. What about the property taxes? Thankfully, they're not so high. Still, with both income and sales taxes amounting to almost $1,500, Minnesota residents pay an average of $3,203 in taxes.
Connecticut
Similar to New Jersey, Connecticut residents pay high income tax rates because they earn more money. The average income tax amount is $2,000, and adding the other taxes to that, you get $3,596 per person.
Hawaii
Hawaii relies more on sales tax, especially since it doesn't have taxes on property. With an estimated population of 1.29 million, the state of Hawaii requires its residents to pay about $3,856 in taxes.
Vermont
The state of Vermont requires a person to pay a personal income tax of $1,306, sales tax of $1,379, and property tax of $1,004. That means all three major taxes are pretty much the same in amount. However, if you add all those up, you get a total of $3,861, and so far, that's the highest number in the list.
Which States have the Highest Taxes?
By: Brandon H Johnston
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