Off The Grid Places To Live: Five States With The Lowest Taxes
Off The Grid Places To Live: Five States With The Lowest Taxes by: Off The Grid News Staff
Residents of Wyoming pay the least taxes in the United States, while New Yorkers pay the most. That’s the conclusion of a recent study by the Tax Foundation which ranked the 10 best and 10 worst states for taxes.
The study proved what many of us probably already know: Residents of the Northeast are overtaxed while residents of certain Western states pay fewer taxes. But there are several surprises in the study. Vermont, for instance, is one of the most taxed states in the nation and Texas no longer appears on the list of the least taxed states. North Carolina also made the most-taxed list.
The list does not take license fees and other government charges — which can be very high in some states — into account.
It should be noted, however, that the list only accounts for state taxes; it doesn’t account for local taxes (in some states local governments actually collect an income tax) or federal taxes.
The 5 States With The Highest Tax Rate
1. New York State
Residents of the Empire state pay a top tax rate of 8.82 percent, a 4 percent state sales tax and an average of $2,280 a year in property taxes. It is actually worse in the Big Apple, where the New York City government charges a 3.876 percent income tax on top of state and federal levies, a 4 percent unincorporated business tax on self-employed people and a corporation tax of 8.85 percent.
2. New Jersey
New Yorkers who cross the bridge to the Garden State won’t get much of a break. The top income tax rate in Jersey is 8.97 percent and the sales tax is 7 percent. New Jersey now has the highest average property tax in the nation of $7,885 for the average household. If that wasn’t bad enough, the economic recovery means that most of the state’s residents no longer qualify for a property tax rebate program.