If you were searching for good news ahead of April 15th, turn back now. Wallethub unveiled the highest tax burden by state, and New York placed second on the list behind Hawaii.
Though we’ve been awarded the title of the second-best city in the world with plenty of great neighborhoods, New York’s biggest downfall always seems to fall in the financial sector. (*Sigh*)
The highest tax burden by state, according to WalletHub
In celebration of April’s tax season, much to our disappointment, Wallethub did a deep dive into tax burdens across the US, which measures the proportion of total personal income that residents pay toward state and local taxes. The top 10 highest states are as follows:
- Hawaii
- New York
- Vermont
- California
- Maine
- New Jersey
- Illinois
- Rhode Island
- Maryland
- Connecticut
New York has the most expensive state and local income taxes in the country, clocking in at 5.8% of residents’ income. However, on the opposite end of the spectrum, Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming do not charge any income tax. How about them apples?
Have a look at Wallethub’s interactive map below to see where each location in the nation ranks.
According to the research, the information was broken down into three main factors:
- Property tax as a share of personal income
- Individual income tax as a share of personal income
- Total sales and excise tax as a share of personal income
“It’s easy to be dismayed at tax time when you see just how much of your income you lose,” says Chip Lupo of WalletHub. “Living in a state with a low tax burden can alleviate some of that stress. Some states charge no income tax or no sales tax, although all states have some form of property taxes and excise taxes.”
Though this is a list where we’d ideally like to appear lower, we guess NYC and its greatness would catapult us high in the $$$ department. Oh well! Tax Day is certainly not our favorite holiday, but fortunately, there are plenty of other spring events to enjoy throughout the city that make stats like these worth bearing.