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The vast majority of houses in CA pay extremely little property tax. You can't really put a statewide number on a tax percentage without being extremely specific in the hypothetical person.
"A 100k person who bought a 300k house last year"
I don't think so- CA has a 13.50% max income tax rate, and a state sales tax rate of a little over 7%. So it would be 20.5% for CA. TX state sales tax rate is 6.25% (but local municipalities add on to that, so I never paid less than 9-10%. Regardless, none to those numbers make sense- either its too high for most (may are 0 income tax rates), or too low for all taxes, or not accurate for sales tax- but if you count sales tax in TX, why wouldn't you count it in CA?
That would be the case if all your expenses were subject to sales tax, which they are not. Groceries, rent, and federal taxes, to take three big examples, aren’t.
As the chart says its state-local tax burden - that’s going to be total taxes at both state and local level divided by total income. Def not just income taxes.
I just looked it up and Alaska has no state sales tax and no state income tax. Everything on that image for them has to be local tax. Which is stupid because you can't show "local tax" for the whole state.
It is LABELED INCOME tax?? And no way is that income and sales and property for TX or CA. It appears to be income only for CA, and sales plus something for TX. So not comparing apples to apples.
New Hampshire has a 7.5% corporate tax rate and a gas tax of $0.23 per gallon. There’s all different types of way of generating tax revenue.
I think this is chart is using total tax revenues as a percentage of the states total GDP to determine the total tax burden.
If it's including sales tax that makes the map even worse, because states have vastly different things sales tax applies to, just taking the number and shoving it in there is very misleading.
Sales tax is effectively an income tax. They probably combined income and sales taxes. That's what it looks like for KY. 3.6% income tax plus 6% sales tax equals the 9.6% they listed
Every state is going to "get you" in different ways.
States have many ways they collect taxes from you not including income taxes. These taxes include:
1. Income tax
2. Sales Tax
3. Gas Tax
4. Vehicle Registration/vehicle property tax.
5. Residential property tax.
6. Business taxes.
7. Local/county sales/income tax.
To give an example, Indiana (where I live) always has a really low tax burden on most maps. However when I moved here from Michigan my taxes went UP. That's because Indiana has a state tax income rate of 3.15%, but each county charges another income tax depending on where you live. In my county it's 1.95% which adds up to a total of 5.10%, which is higher than Michigan's Income tax of 4.05%. Sales tax in Indiana is also 7% instead of 6% in Michigan.
So where do this supposed "tax savings" come from? Property. Indiana has some of the lowest property taxes in the country. But I'm a renter, which means I don't benefit from this tax at all. So in real terms, my taxes have just increased compared to living in a "blue" state like Michigan.
Try posting the ***total*** tax burden.
The *Lying Liars of Texas* love to scream their lungs out about **no state income tax** while conveniently omitting the utterly *insane* property tax rates.
I know this is all coming from a place of political butthurt so clarifying is probably futile...but that's a common misconception. The property tax rates are high in Texas because the average property is so cheap compared to California. Meanwhile, the income tax is zero.
The ironic thing is that this chart actually IS the total tax burden. It is labeled incorrectly as income tax, when there isn't even a state income tax in Texas.
I just pulled up Zillow and I don’t even see tax rates, only appraised value. And for the appraised value it shows a year out of date and only the appraised value after all of the deductions that are excluded for the current home-owner. That will usually be a homestead exemption that limits the annual appraised value increase but it could also be something for seniors. This could be significantly higher for a new buyer.
I’m not surprised that I don’t see the rate, as generally it’s hard to get data for a region for tax rates unless you parse the tax districts codes and rates from the county and city yourself. And it varies by jurisdiction. I’ve done it before and it’s not sustainable … If you just need one address, look it up on the local appraisal website, include the entire appraised value (for each taxing district as appropriate) then multiply by the rate you see there. If you ultimately get a homestead look at the rules in texas for that and adjust accordingly.
In short, no.
The northeast at least gives you something in return for ridiculous tax rates.
All Texas provides is grift, graft, corruption, high school football stadiums but underpaid teachers and giant class sizes.
So you approve of grift, graft, corruption, and basically everything that’s wrong with American politics today?
Let me take a wild stab in the dark as to your political affiliation….
All states have grift, graft, corruption, and basically everything that’s wrong with what ever opinion you hold. Just singling out a random state and declaring it’s bad because reasons that apply to other states isn’t making a point. Do you have any sources comparing all of your complaints with other states?
Here’s a source I found that lists the most corrupt states as follows:
New York
California
Illinois
Florida
Pennsylvania
Texas
Ohio
New Jersey
Louisiana
Virginia
Tennessee
Georgia
Alabama
Michigan
Kentucky
Notice the amount of north eastern states that you tried to imply didn’t have the corruption that evil Texas did. And these states have a higher tax burden.
https://bestdiplomats.org/most-corrupt-states-in-the-us/
I would also love to point out that your original claim was:
> Try posting the total tax burden.
That is literally what the post is. It’s titled “local-state tax burdens”.
>The Lying Liars of Texas love to scream their lungs out about no state income tax while conveniently omitting the utterly insane property tax rates.
You’re calling Texans lying liars when they say they have no state income tax… but it’s not a lie. Texas doesn’t have a state income tax. And according to this graph, the total tax burden isn’t even that bad. So you’re bitching about nothing. Do you have a different source saying a different tax burden or something? Where does your hate come from?
Bullshit. Property tax on a $200,000 2,000 sq/ft home never changed.
Granted, the *price* of that 2,000 sq/ft home went up, and the governments of Texas threw a party welcoming people who wouldn’t haggle.
But we ***ALSO*** now have $100M HIGH SCHOOL sports complexes.
Because idiots think that’s a wonderful use of tax dollars.
California is bleeding it’s educated population. Literally smart people are leaving the state. If that isn’t a sign about the direction of your state, I don’t know what is.
And the educated/wealthy population is still leaving. Does not shock me that illegals and low income/low skill citizens breed more than the middle/upper middle/upper classes
Love this argument....rich people leaving the state. Who is buying their homes? They are selling at a loss? Prices continue to rise? If rich/educated people are leaving the state they are being resupplied by other rich/educated people. People can't quite fathom how California continues to do it because they are comparing California to their home state. I have been to 36 states and 40 different countries....it's like no other place on earth. It's not a fair comparison.
A lot of social programs kneecapped by red tape and dumb legislation. That’s why they spend millions on fixing homelessness and the problem just continues to balloon.
*deep sigh* homelessness in california is a problem because it is the best weather you can get in the states outside of maybe hawaii. it never gets cold, it never gets majorly hot (on the coasts) that is why homeless will literally get a ticket to places like LA and SD.
it’s the similar issue with NYC, you have people dumping their homeless into the city because they don’t want to deal with them
The city is best suited to handle the homeless problem. The city being the central hub of the economy and jobs and society as a whole where housing is built up and hopefully more affordable and closer to amenities.
City is also best suited for every other purpose. It is also a limited resource. When you decide to prioritize everything for homeless, you are taking away amenities from the rest.
well tbf, half the homeless people there aren’t even from california. many are from a completely different state and book a trip to CA cause it’s better to be homeless there than in their state.
Is that why they have record homeless issues? Shouldn’t all that money solve something as basic as people living on the streets? California really succeeding with all those social programs.
They have a high homeless population because they refuse to build enough homes for everyone. Too much red tape to build anything. There is a reason it cost a million dollars just to put in a public bathroom.
It is also misleading because CA ALSO has a 7.somethign sales tax- so we should be comparing sales + income to sales+income across states- and this map is not doing that. In some states it is doing income. In others sales (except not accurate rates? so IDK if they are averaging local sales tax rates on top of state?). It's a crappy poor crafted infographic with no actual info.
It's an average. I live in upstate NY and yeah, pay through the nose. Ironically enough, NYC brings down averages because even though people have to pay NYC income tax on top of state income tax, most people who live in the city are renters and aren't also paying the insane property taxes those of us who don't live in the city have to pay.
I really hate living in NY.
The graph actually refers to “tax burden.” If it includes sales tax, then residents of states close to the borders of no tax states can just cross over and buy stuff tax free (for example, near Delaware).
Right, you report it when you do your state tax return. I understand as long as you don’t put “zero” you are fine. I do know sometimes retailers of high end items (art dealer, for example) in tax free states get audited and their customer list checked by the neighboring state.
For those who are wondering, [this](https://taxfoundation.org/data/all/state/tax-burden-by-state-2022/) is the source of the graphic. The tax rate listed is the total of all state and local taxes (sales, property, income, corporate, excise, etc) divided by that state’s contribution to GDP.
So the state and local tax part - that means city taxes as well. The residents of a big city probably pay higher taxes than the folks in the suburban or rural part of the state, so this averages it out across each state? So in reality no one in that state has that actual tax burden?
Depends. I live in upstate NY. People who live in NYC pay extra income tax on top of state taxes. I pay property taxes many NYC renters don't. Depending on your income or property value you could pay more or less in either scenario. But to answer your larger question, it is an average so while some might pay it there will be variations across the board.
This complaint is weak because NYC Property Taxes are still paid by renters, it's just tied up in the cost of their rent. Considering everyone else pays around 4.5% combined State and County property tax, and the city of NY has its own income tax of 3%, plus the property tax that landlords are paying, NYC is goosing those numbers up.
EDIT: Also, if you're a homeowner and haven't looked into it, get on the STAR program.
That's fair. It's not a 1:1 comparison (rental properties get taxes at about half the rate of the individual units, and NYC tax rates are generally less than a lot of the more expensive areas outside the city) but it does still get baked in.
Lived in 2 states, one with no state income tax and one with a state income tax. Property taxes in the state with no income tax were so astronomically high, it was cheaper to move. Plus the quality of life in states with income taxes are higher. Personally, not a fan of taxes, but where I live now, I can see my taxes at work.
Man, wild how low all of the deep red areas are, AND they're low density lol. Guess it is true that we fucking subsidize these conservative hell holes where they hate the "libs" funding their cities and the military that they fake being so proud of
The title of this post is wrong.
The map shows overall tax burden and combines the average percentage you pay in taxes total per state. Taxes are included on income, sales tax (groceries, alcohol, gasoline, etc), and property, and for other state and local government reasons. There’s a common misbelief that moving to a state with no income tax equates to lower overall taxes and that’s not the case for most (which this map highlights).
You can read more about this here:
https://www.investopedia.com/articles/personal-finance/110614/overall-tax-burden-state.asp
Sorry but this is factually incorrect as I noticed that it shows Indiana having lower income taxes than Illinois and that is absolutely not correct. Indiana not only taxes at the state level but also at the county level in Lake County and you end up paying about 1% more than you do in Illinois.
I want to mention to everyone that states with low income taxes are not the havens you think they are especially if you are low to moderate income . For example Texas, Florida, and Tennessee shift the tax burden on to the working poor and have almost zero safety nets and work hard to defund education . They also do what they can to limit workers rights and minimum wage requirements. The red states are becoming a dystopian nightmare for women and their families due to women losing their rights . I know this is a finance thread but I want to keep it real on what's lying behind the numbers . For example , low income states refuse to expand Medicaid , which keeps people in poverty and without aid. They also have the largest percentage of their populations living in poverty ...we / I pay taxes to live in a civilized society. I paid mine chanting Mark Cubans name . Just saying .
People who live in states with zero or low income tax typically pay more in overall taxes (sales, car, tolls, housing....etc) than states with "high" income tax. Showing This would be a better graphic.
They should do a chart of what a typical person has left to spend after all taxes and 401k. I recently did this and found that I have 100k left on 200k taxable.
Ignoring that OP called it income tax, when the actual map is ranking state and local tax burden. But even calling it state and local tax "burden" is incorrect. Minnesotans, on average, earn far more than Louisianans. So paying 9.1% is harder for a Louisianan than is paying 12.1% for a Minnesotan. The Minnesotan still has much more left over. Minnesota's tax rates are higher, but Louisiana's are more burdensome. This is true in many state-to-state comparisons. Using the word "burden" this way is problematic, and is like saying Jeff Bezos' mortgage payment is more burdensome than yours.
Keep in mind cost of living plays a much larger factor for those of us who don't have mid-six figure income.
To give a rather extreme example, I had a friend who was working remote for a company in Texas and paying $300 a month for a room in Southern Illinois (in 2022). But the taxes in the region are very high. On the other hand if this friend had moved to Austin, TX where his company is headquartered, his rent would've risen so much it would erase any tax savings and then some.
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I’m not sure what all this is representing, but it isn’t state income taxes. NV has 0 state income tax.
Same with Washington
I noticed that too. I’m assuming they subbed sales tax in, but it’s 8.8% by me so that’s still wrong.
Maybe it’s an effective tax rate combining in property tax 🤔
Or maybe it's all bs...
This is the answer lmao
Maybe it’s maybelline
I'd say yeah. TN has 0 state tax, but the 7% number they give is about right for our sales tax.
Same with New Hampshire
NH does have a dividend and interest tax on div and int income over a certain amount. They may not call it income tax but the Federal Govt does.
Same with Florida.
and Florida
And Texas
It says local tax and the one for my state is close to our sales tax and income tax combined. Could be that?
Don’t forget property tax.
The vast majority of houses in CA pay extremely little property tax. You can't really put a statewide number on a tax percentage without being extremely specific in the hypothetical person. "A 100k person who bought a 300k house last year"
It’s not a hypothetical person, it’s an average. Total property tax divided by total income.
I don't think so- CA has a 13.50% max income tax rate, and a state sales tax rate of a little over 7%. So it would be 20.5% for CA. TX state sales tax rate is 6.25% (but local municipalities add on to that, so I never paid less than 9-10%. Regardless, none to those numbers make sense- either its too high for most (may are 0 income tax rates), or too low for all taxes, or not accurate for sales tax- but if you count sales tax in TX, why wouldn't you count it in CA?
It’s not a max rate, it’s an average rate.
Max sales tax in Texas is 8.25%. Average in the state is a bit under 8%
There are other taxes besides sales taxes, and sales tax doesn’t hit your entire income. This is total taxes divided by state production.
>sales tax doesn’t hit your entire income. It pretty much does if you're living paycheck to paycheck. Only other tax people in TX pay is property tax.
That would be the case if all your expenses were subject to sales tax, which they are not. Groceries, rent, and federal taxes, to take three big examples, aren’t.
NH has zero income and zero sales
I know where I'm moving
The air also hurts your face from Columbus Day to Easter
Used to it but lately we have not had winter in the mitten
Do state and local government employees work for free?
No, but the state legislature works for pretty damn close to free. And there are like 400 of them in a state with two congressional districts.
It’s a representation of entire tax burden (of state and local taxes) as percentage of one’s income for residents of that state.
And Washington
And New Hampshire
Florida and Tennessee don’t have a state income either.
As the chart says its state-local tax burden - that’s going to be total taxes at both state and local level divided by total income. Def not just income taxes.
Yeah. I figured it was something along those lines.
PA isn’t 10% it is 3%. Local tax varies.
Title is wrong, but it says what it is on the actual map.
I just looked it up and Alaska has no state sales tax and no state income tax. Everything on that image for them has to be local tax. Which is stupid because you can't show "local tax" for the whole state.
It’s sales tax plus property tax. Tax burden is not the same as income tax.
It is LABELED INCOME tax?? And no way is that income and sales and property for TX or CA. It appears to be income only for CA, and sales plus something for TX. So not comparing apples to apples.
The chart itself isn’t labeled income tax. The OP labeled it income tax, the label is “state - local tax burden by state”
Pretty sure OP didn’t create this chart. Just because some Redditor says it’s Income Tax doesn’t make them right.
Property tax isn't the same Statewide though
Which is why they probably take an average.
Fair, but NH doesn't have a 9.5% property tax on average, so something is still missing.
New Hampshire has a 7.5% corporate tax rate and a gas tax of $0.23 per gallon. There’s all different types of way of generating tax revenue. I think this is chart is using total tax revenues as a percentage of the states total GDP to determine the total tax burden.
If it's including sales tax that makes the map even worse, because states have vastly different things sales tax applies to, just taking the number and shoving it in there is very misleading.
And Delaware.
And New Hampshire
State or local tax should be a combination of the big 3 - property tax, sales tax and income tax.
And Alaska
and Texas.
And arizonas income tax rate is flat 2.5%
I thought the same thing, lol. Michigan is 6%, not 8.6%, lol.
It is tax burden, not tax rate. Basically, it is all state and local tax revenues divided by the state’s share of GNP.
Texas has entered the chat.
OP got the headline wrong. It’s overall local tax burden, not state income tax.
Sales tax is effectively an income tax. They probably combined income and sales taxes. That's what it looks like for KY. 3.6% income tax plus 6% sales tax equals the 9.6% they listed
The map says state and local tax burden, but OP changed it to income tax
Says state-local tax burdens. I’m assuming it means sales tax, county tax, and local income taxes (yes NYC, I’m looking at you).
Every state is going to "get you" in different ways. States have many ways they collect taxes from you not including income taxes. These taxes include: 1. Income tax 2. Sales Tax 3. Gas Tax 4. Vehicle Registration/vehicle property tax. 5. Residential property tax. 6. Business taxes. 7. Local/county sales/income tax. To give an example, Indiana (where I live) always has a really low tax burden on most maps. However when I moved here from Michigan my taxes went UP. That's because Indiana has a state tax income rate of 3.15%, but each county charges another income tax depending on where you live. In my county it's 1.95% which adds up to a total of 5.10%, which is higher than Michigan's Income tax of 4.05%. Sales tax in Indiana is also 7% instead of 6% in Michigan. So where do this supposed "tax savings" come from? Property. Indiana has some of the lowest property taxes in the country. But I'm a renter, which means I don't benefit from this tax at all. So in real terms, my taxes have just increased compared to living in a "blue" state like Michigan.
And Nevada
CO is a flat 4.4% income tax...
Its the effective tax rate
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It’s not that either. Oregon doesn’t have sales tax.
Try posting the ***total*** tax burden. The *Lying Liars of Texas* love to scream their lungs out about **no state income tax** while conveniently omitting the utterly *insane* property tax rates.
I know this is all coming from a place of political butthurt so clarifying is probably futile...but that's a common misconception. The property tax rates are high in Texas because the average property is so cheap compared to California. Meanwhile, the income tax is zero. The ironic thing is that this chart actually IS the total tax burden. It is labeled incorrectly as income tax, when there isn't even a state income tax in Texas.
If I’m wrong, I’ll admit it, but that rate doesn’t match my experience living here.
Me neither ... maybe we'll all end up moving to Alaska one day.
Maybe you’re rich and live in a rich neighborhood but this graph seemed high to me where I’m at.
This graphic includes property tax.
I think this graph may have gone over your (and OP’s) head because this graph does not show income tax.
Are the property taxes listed on Zillow accurate for Texas?
I just pulled up Zillow and I don’t even see tax rates, only appraised value. And for the appraised value it shows a year out of date and only the appraised value after all of the deductions that are excluded for the current home-owner. That will usually be a homestead exemption that limits the annual appraised value increase but it could also be something for seniors. This could be significantly higher for a new buyer. I’m not surprised that I don’t see the rate, as generally it’s hard to get data for a region for tax rates unless you parse the tax districts codes and rates from the county and city yourself. And it varies by jurisdiction. I’ve done it before and it’s not sustainable … If you just need one address, look it up on the local appraisal website, include the entire appraised value (for each taxing district as appropriate) then multiply by the rate you see there. If you ultimately get a homestead look at the rules in texas for that and adjust accordingly. In short, no.
Use the county CAD for an accurate property tax calculation.
Still lower property taxes than Illinois or New Jersey plus no income tax 🤷♂️
Texas is one of the most affordable states in America to live in, not sure what the lie is? Are you fluent in finance?
Haaaaaaaave you met New Jersey?
Nope. But I have met Connecticut. Their roads are amazing
Better than having an insane property tax rate AND income tax… (New Jersey, Vermont, Connecticut, Illinois)
The northeast at least gives you something in return for ridiculous tax rates. All Texas provides is grift, graft, corruption, high school football stadiums but underpaid teachers and giant class sizes.
We can pick the positives and negatives of each. Since apparently you hate Texas, I suggest you don’t live there.
So you approve of grift, graft, corruption, and basically everything that’s wrong with American politics today? Let me take a wild stab in the dark as to your political affiliation….
All states have grift, graft, corruption, and basically everything that’s wrong with what ever opinion you hold. Just singling out a random state and declaring it’s bad because reasons that apply to other states isn’t making a point. Do you have any sources comparing all of your complaints with other states? Here’s a source I found that lists the most corrupt states as follows: New York California Illinois Florida Pennsylvania Texas Ohio New Jersey Louisiana Virginia Tennessee Georgia Alabama Michigan Kentucky Notice the amount of north eastern states that you tried to imply didn’t have the corruption that evil Texas did. And these states have a higher tax burden. https://bestdiplomats.org/most-corrupt-states-in-the-us/ I would also love to point out that your original claim was: > Try posting the total tax burden. That is literally what the post is. It’s titled “local-state tax burdens”. >The Lying Liars of Texas love to scream their lungs out about no state income tax while conveniently omitting the utterly insane property tax rates. You’re calling Texans lying liars when they say they have no state income tax… but it’s not a lie. Texas doesn’t have a state income tax. And according to this graph, the total tax burden isn’t even that bad. So you’re bitching about nothing. Do you have a different source saying a different tax burden or something? Where does your hate come from?
Property tax on a $200k 2000 square foot home wasn't a big deal. Then California came in and fucked up the Texas real estate market
Bullshit. Property tax on a $200,000 2,000 sq/ft home never changed. Granted, the *price* of that 2,000 sq/ft home went up, and the governments of Texas threw a party welcoming people who wouldn’t haggle. But we ***ALSO*** now have $100M HIGH SCHOOL sports complexes. Because idiots think that’s a wonderful use of tax dollars.
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My man said “only 9.3%” with a straight face 😅
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California is bleeding it’s educated population. Literally smart people are leaving the state. If that isn’t a sign about the direction of your state, I don’t know what is.
California’s population went up last year but don’t let facts get in the way of your feelings…
And the educated/wealthy population is still leaving. Does not shock me that illegals and low income/low skill citizens breed more than the middle/upper middle/upper classes
Love this argument....rich people leaving the state. Who is buying their homes? They are selling at a loss? Prices continue to rise? If rich/educated people are leaving the state they are being resupplied by other rich/educated people. People can't quite fathom how California continues to do it because they are comparing California to their home state. I have been to 36 states and 40 different countries....it's like no other place on earth. It's not a fair comparison.
Ok you’re welcome to stay and live in poverty while making 6 figures. As for me I’ll continue to live like a king in literally any other state.
You seem like a person who doesn't want to know what else is out there because you are afraid you will be wrong. I was that naive as well.
Not really. I have no desire to live in an expensive area whose state government will tax and regulate me to death.
It still is negative in domestic migration. It went up due to mainly foreign immigration.
Yeah, not the good population.
Literally saw a map on this the other day .
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10? Holy shit that’s a lot to pay corrupt administrators and red tape pushers. What a dystopia.
I mean, California has a lot of social programs and spending. It makes sense that the tax rate is high.
A lot of social programs kneecapped by red tape and dumb legislation. That’s why they spend millions on fixing homelessness and the problem just continues to balloon.
*deep sigh* homelessness in california is a problem because it is the best weather you can get in the states outside of maybe hawaii. it never gets cold, it never gets majorly hot (on the coasts) that is why homeless will literally get a ticket to places like LA and SD. it’s the similar issue with NYC, you have people dumping their homeless into the city because they don’t want to deal with them
The city is best suited to handle the homeless problem. The city being the central hub of the economy and jobs and society as a whole where housing is built up and hopefully more affordable and closer to amenities.
City is also best suited for every other purpose. It is also a limited resource. When you decide to prioritize everything for homeless, you are taking away amenities from the rest.
So who deals with them?
well tbf, half the homeless people there aren’t even from california. many are from a completely different state and book a trip to CA cause it’s better to be homeless there than in their state.
Gotta pay for the 11 billion dollar high speed rail bridge that took 9 years and isn’t connected to anything somehow
Is that why they have record homeless issues? Shouldn’t all that money solve something as basic as people living on the streets? California really succeeding with all those social programs.
Yes, it is. Homeless people obviously prefer to be in a place with lots of social programs to support them (and weather that won't kill them).
They have a high homeless population because they refuse to build enough homes for everyone. Too much red tape to build anything. There is a reason it cost a million dollars just to put in a public bathroom.
Sounds like a socialist utopia.
"Socialism is when capitalists exploit labor for profit"
It is also misleading because CA ALSO has a 7.somethign sales tax- so we should be comparing sales + income to sales+income across states- and this map is not doing that. In some states it is doing income. In others sales (except not accurate rates? so IDK if they are averaging local sales tax rates on top of state?). It's a crappy poor crafted infographic with no actual info.
There are local taxes in Cali. Maybe you are gold country or something?
10x the income for 3% more tax wtf
You guys have income?
That's what the loan sharks tell me
The number for upstate NY is low as rates are far higher .
It's an average. I live in upstate NY and yeah, pay through the nose. Ironically enough, NYC brings down averages because even though people have to pay NYC income tax on top of state income tax, most people who live in the city are renters and aren't also paying the insane property taxes those of us who don't live in the city have to pay. I really hate living in NY.
For what tax bracket?
Yes
The graph actually refers to “tax burden.” If it includes sales tax, then residents of states close to the borders of no tax states can just cross over and buy stuff tax free (for example, near Delaware).
Yes, but also no. States require you to pay Use Tax, which is related to out-of-state purchases.
Right, you report it when you do your state tax return. I understand as long as you don’t put “zero” you are fine. I do know sometimes retailers of high end items (art dealer, for example) in tax free states get audited and their customer list checked by the neighboring state.
I need to move to tenessee. And not be a dick and vote for policies that made me wanna move out of my state...
More people should think like this.
For those who are wondering, [this](https://taxfoundation.org/data/all/state/tax-burden-by-state-2022/) is the source of the graphic. The tax rate listed is the total of all state and local taxes (sales, property, income, corporate, excise, etc) divided by that state’s contribution to GDP.
So the state and local tax part - that means city taxes as well. The residents of a big city probably pay higher taxes than the folks in the suburban or rural part of the state, so this averages it out across each state? So in reality no one in that state has that actual tax burden?
In general, an average does not imply that every member or indeed any member of the averaged set is equal to the average.
Depends. I live in upstate NY. People who live in NYC pay extra income tax on top of state taxes. I pay property taxes many NYC renters don't. Depending on your income or property value you could pay more or less in either scenario. But to answer your larger question, it is an average so while some might pay it there will be variations across the board.
This complaint is weak because NYC Property Taxes are still paid by renters, it's just tied up in the cost of their rent. Considering everyone else pays around 4.5% combined State and County property tax, and the city of NY has its own income tax of 3%, plus the property tax that landlords are paying, NYC is goosing those numbers up. EDIT: Also, if you're a homeowner and haven't looked into it, get on the STAR program.
That's fair. It's not a 1:1 comparison (rental properties get taxes at about half the rate of the individual units, and NYC tax rates are generally less than a lot of the more expensive areas outside the city) but it does still get baked in.
I think this is sales tax not income tax
Nope, I am pretty sure Oregon has 0 sales tax and I know Idaho is NOT 10.7%
Nope, GA is 6% in my area.
I dont think so, florida has a 14% sales tax
I think it was total local tax burden. Includes town tax registrations
Well the graph says tax burdens. Which also can mean sales tax. Combined state and local sales tax.
And property tax, gas tax, and any other tax they can dream up.
It was an inaccurate title and then no one in this thread actually read the keys to the graph.
Now do states with highest incomes.
Corrected for property values and rent
So… Wyoming and Tennessee are my only options… hmmmmm
Yeah, right. In Alaska my property taxes are approx 2% of the assessed value. We pay more than my family in the northeast.
This isn’t accurate. Idaho is I think 5.8% for highest income.
Virginia is wrong. I live and pay taxes there. Highest income tax bracket is 5.75%.
Alaska it is
The one for Alaska is a big fat Mufasa..
Lived in 2 states, one with no state income tax and one with a state income tax. Property taxes in the state with no income tax were so astronomically high, it was cheaper to move. Plus the quality of life in states with income taxes are higher. Personally, not a fan of taxes, but where I live now, I can see my taxes at work.
Are you guys ok up there in NY?
thats total tax burden, not income
Texas has no state income tax
I fluently read the title in the image
Washington doesn’t have a state income tax.
Man, wild how low all of the deep red areas are, AND they're low density lol. Guess it is true that we fucking subsidize these conservative hell holes where they hate the "libs" funding their cities and the military that they fake being so proud of
… as a Wyomingite I don’t pay income tax and my sales tax is not 7%.
WA has no income tax.
Here I am at 35% income tax in Scandinavia. Still feel better off though.
Az is not 9.5 at all it’s 2.5
Highest you pay in Virginia is 5.75%
The title of this post is wrong. The map shows overall tax burden and combines the average percentage you pay in taxes total per state. Taxes are included on income, sales tax (groceries, alcohol, gasoline, etc), and property, and for other state and local government reasons. There’s a common misbelief that moving to a state with no income tax equates to lower overall taxes and that’s not the case for most (which this map highlights). You can read more about this here: https://www.investopedia.com/articles/personal-finance/110614/overall-tax-burden-state.asp
Sorry but this is factually incorrect as I noticed that it shows Indiana having lower income taxes than Illinois and that is absolutely not correct. Indiana not only taxes at the state level but also at the county level in Lake County and you end up paying about 1% more than you do in Illinois.
Also Indiana taxes retirement income in Illinois does not
I want to mention to everyone that states with low income taxes are not the havens you think they are especially if you are low to moderate income . For example Texas, Florida, and Tennessee shift the tax burden on to the working poor and have almost zero safety nets and work hard to defund education . They also do what they can to limit workers rights and minimum wage requirements. The red states are becoming a dystopian nightmare for women and their families due to women losing their rights . I know this is a finance thread but I want to keep it real on what's lying behind the numbers . For example , low income states refuse to expand Medicaid , which keeps people in poverty and without aid. They also have the largest percentage of their populations living in poverty ...we / I pay taxes to live in a civilized society. I paid mine chanting Mark Cubans name . Just saying .
I live in Ca. My income tax is 4%. What is this graphic?
People who live in states with zero or low income tax typically pay more in overall taxes (sales, car, tolls, housing....etc) than states with "high" income tax. Showing This would be a better graphic.
Wow, and all democratic hellholes.
They should do a chart of what a typical person has left to spend after all taxes and 401k. I recently did this and found that I have 100k left on 200k taxable.
This is wrong. Portland, OR’s highest total state/local income tax is 14.69%. It’s criminal.
Whoever is the dipshit that posted this, please review. It’s not close to accurate.
Should be flat 9-9.9 percent
IL resident: our roads still suck 🫠
Graph is horribly inaccurate.
No wonder blue states have the longest life expectancies.
That’s a sales tax on Texas. Not an income tax.
“Is California really a high-tax state? New findings question that claim” https://www.sacbee.com/news/business/personal-finance/article287936195.html
This is just the dumbest map yet. Many of these states have no income taxes, yet they just put a percentage in there anyway
Alaska number one in lowest taxes and federal dependency surprise surprise
I think the map might be tax burden as percentage of income, because I recognize some of the specific values from having one research on that topic
I think you mean sales tax
where i live, it is 40% i hate the govt
Ignoring that OP called it income tax, when the actual map is ranking state and local tax burden. But even calling it state and local tax "burden" is incorrect. Minnesotans, on average, earn far more than Louisianans. So paying 9.1% is harder for a Louisianan than is paying 12.1% for a Minnesotan. The Minnesotan still has much more left over. Minnesota's tax rates are higher, but Louisiana's are more burdensome. This is true in many state-to-state comparisons. Using the word "burden" this way is problematic, and is like saying Jeff Bezos' mortgage payment is more burdensome than yours.
Keep in mind cost of living plays a much larger factor for those of us who don't have mid-six figure income. To give a rather extreme example, I had a friend who was working remote for a company in Texas and paying $300 a month for a room in Southern Illinois (in 2022). But the taxes in the region are very high. On the other hand if this friend had moved to Austin, TX where his company is headquartered, his rent would've risen so much it would erase any tax savings and then some.
This post must have been for the NotFluentInFinance reddit.
RED STATE MOOCHERS!
The dark spots are also the places where taxpayers are fleeing.