Texas ranked 4th among low-tax states

The state of New York imposes the highest tax burden on its residents, while the residents of Wyoming enjoy the least tax burden, 24/7 Wall St. reported citing data from the Tax Foundation.

During the 2011 tax season, Americans paid 9.8% of their income in state and local taxes, in addition to the taxes collected by the federal government.  Residents of New York paid 12.6% of their income in state and local taxes, while Wyoming collected less than 7% from its tax-payers.

States with low tax burdens often eliminated a major type of tax. States that had high tax burdens typically utilized a wide range of taxes.  “High tax states tend to be those that not only have high [tax] rates but tax a lot of different things in a lot of different ways,” Lyman Stone, economist at the Tax Foundation, told 24/7 Wall St.

24/7 Wall St. compiled the lists of states with the highest and lowest tax burdens using the Tax Foundation’s analysis of state and local tax burden as a share of state residents’ income. This includes all taxes paid by residents to the state or to various localities.

Among the states with lowest taxes:

4. Texas
Taxes paid by residents as pct. of income: 7.5%
Total state taxes collected: $48.6 billion (3rd highest)
Tax burden per capita: 3,088 (8th smallest)
Income per capita: $41,269 (23rd highest)
Texas is one of a handful of states with no income tax - individual or corporate. Texas also has among the lowest gas tax rates.


These are some of the states with the highest taxes:

1. New York
Taxes paid by residents as percent of income: 12.6%
Total state taxes collected: $71.5 billion (2nd highest)
Tax burden per capita: $6,622 (3rd largest)
Income per capita: $52,417 (5th highest)
According to 24/7 Wall St., more than half of the $71.5 billion came from individual income taxes.

2. New Jersey
Taxes paid by residents as percent of income: 12.3%
Total state taxes collected: $27.5 billion (7th highest)
Tax burden per capita: $6,675 (2nd largest)
Income per capita: $54,422 (2nd highest)
According to 24/7, one of the reasons for the higher taxes could be the state's "considerable debt burden of $7,328 per capita, the fifth highest in the U.S."

3. Connecticut
Taxes paid by residents as percent of income: 11.9%
Total state taxes collected: $15.4 billion (19th highest)
Tax burden per capita: $7,150 (the largest)
Income per capita: $60,287 (the highest)
The state has among the highest property taxes in the country.

7. Maryland
Taxes paid by residents as percent of income: 10.6%
Total state taxes collected: $17.0 billion (15th highest)
Tax burden per capita: $5,598 (4th largest)
Income per capita: $52,805 (4th highest)
Maryland residents were among America’s wealthiest in 2011, but the state's biggest earner was its not-so-effective property tax.

8. Rhode Island
Taxes paid by residents as percent of income: 10.5%
Total state taxes collected: $2.8 billion (6th lowest)
Tax burden per capita: $4,676 (8th largest)
Income per capita: $44,367 (16th highest)
With the state's budget deficit projected to nearly triple by 2018, tax situation might worsen for the residents of Rhode Island.

10. Pennsylvania
Taxes paid by residents as percent of income: 10.3%
Total state taxes collected: $32.9 billion (6th highest)
Tax burden per capita: $4,374 (12th largest)
Income per capita: $42,268 (20th highest)
The state has among the highest property and gas taxes in the country.

(4/9/14)

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