Taxes and Where You Live

November 20th, 2007

I was recently surfing the web and came across some tax information that I thought would be good to pass on to others.  Within the articles I read, I was able to find the states and cities that tax their residents the most and the least, the states that do not require residents to pay income tax, as well as which states have the highest and lowest property taxes.

Did you know that there are nine states that do not require residents to pay personal income tax?  That’s right.  According to CCH Inc., these states include Wyoming, Washington, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, and Texas.

According to the Bureau of Economic Analysis, Alaska requires their residents to pay the least amount of taxes, 6.6%, which is the percentage of residents’ total income.  Vermont requires their residents to pay the most at 14.1%.  Take a look at the best and worst for 2006.

Best 5:
1. Alaska: 6.6%
2. New Hampshire: 8.0%
3. Tennessee: 8.5%
4. Delaware: 8.8%
5. Alabama: 8.8%

Worst 5:
1. Vermont: 14.1%
2. Maine: 14.0%
3. New York: 13.8%
4. Rhode Island: 12.7%
5. Ohio: 12.4%
 
According to the government of the District of Colombia, Anchorage, Alaska is the most tax friendly city in the United States at 3.5% (total city taxes for a family of three as a percentage of annual income).  On the other hand, Bridgeport, Connecticut is the most “unfriendly” at 18.6%.  Here are the best and worst based on 2005 data.
 
Best 5:
1. Anchorage, Alaska: 3.50%
2. Cheyenne, Wyoming: 3.7%
3. Jacksonville, Florida: 4.20%
4. Las Vega, Nevada: 4.80%
5. Memphis, Tennessee: 5.20%

Worst 5:
1. Bridgeport, Connecticut: 18.60%
2. Philadelphia, Pennsylvania: 11.80%
3. Providence, Rhode Island: 11.10%
4. New York City, New York: 11.10%
5. Des Moines, Iowa: 10.50%
 
According to the Tax Foundation, New Jersey homeowners paid the highest property taxes in 2005, averaging $5,352.  Louisiana homeowners paid the lowest property taxes, averaging only $175!  Other expensive locations included New Hampshire, New York, and Connecticut.  The less expensive areas included Alabama, West Virginia, and Mississippi.

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2 Responses to “Taxes and Where You Live”

  1. Michael Says:
    January 15th, 2008 at 4:28 am

    Great information about the taxes! The ratio clearly distinguishes the percentile of amount being paid by the people of a particular state. Moreover, I got to know that there are nine states where income tax is not obligatory. Its really surprising!

  2. chuks ugoji Says:
    February 16th, 2008 at 2:37 am

    Wow, income tax not obligatory on some states, i find it unbeliveable

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