Californians and New Yorkers Pay the Most Taxes











by
March 20, 2014

Do you live in California or New York? If so, be prepared to cough up a lot of money on taxes every year. According to WalletHub, a community-based personal-finance firm, New York ranks the highest in terms of taxes followed closely by California.  

Those living and states subjects to the highest tax rates pay almost quadruple what is paid by those in other states. WalletHub substantiates its claims by attributing its results to a group of Berkeley and Harvard researchers who interpreted how local and state tax rates compared to the national median compared among all states.  

Average annual state and local taxes came out to $9,718 in New York. On the opposite side of the spectrum average annual taxes came out to $2,365 in Wyoming.

States that have no income tax include Alaska, Florida, Nevada, the South Dakota, Texas, Washington, and Wyoming. States that have the lowest real estate taxes include Hawaii Alabama, Louisiana, Delaware, and South Carolina.

In terms of sales tax four states have none. Those include Delaware, Montana, New Hampshire, and Oregon.

Interestingly, taxes were much higher in states that were affiliated with the Democratic Party then those affiliated with the Republican Party. Specifically, Republican states averaged a tax of 19.9% while democratic states averaged taxes of 31.4%.

Notwithstanding California and New York’s extremely high tax rates, they are home to the most billionaires in the US. Specifically, California is home to 111 billionaires and New York is home to 66 billionaires. ¬†

Here is the list, based on state taxes from lowest to highest:

1. Wyoming  
2. Alaska  
3. Nevada  
4. Florida  
5. South Dakota  
6. Washington  
7. Texas  
8. Delaware  
9. North Dakota  
10. Colorado  
11. New Mexico  
12. Alabama  
13. Arizona  
14. Utah  
15. Mississippi  
16. Indiana  
17. Louisiana  
18. West Virginia  
19. Montana  
20. Oklahoma  
21. Massachusetts  
22. Rhode Island  
23. South Carolina  
24. Missouri  
25. Tennessee  
26. Georgia  
27. Virginia  
28. New Hampshire  
29. Hawaii  
30. Kentucky  
31. Arkansas  
32. Ohio  
33. Kansas  
34. Idaho  
35. North Carolina  
36. Michigan  
37. District of Columbia  
38. Minnesota  
39. Pennsylvania  
40. Oregon  
41. Maryland  
42. Maine  
43. Iowa  
44. New Jersey  
45. Vermont  
46. Wisconsin  
47. Illinois  
48. Connecticut  
49. Nebraska
50. California
51. New York


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