by LawInc Staff
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:
5. South Dakota
9. North Dakota
11. New Mexico
18. West Virginia
22. Rhode Island
23. South Carolina
28. New Hampshire
35. North Carolina
37. District of Columbia
44. New Jersey
51. New York