Taxes have always been a topic of contention and concern for many Americans. Each state within the nation has its unique approach toward taxation, resulting in varying degrees of tax burden on its residents. This article explores the top 15 states where Americans grapple with the most significant tax burdens, offering insights into their respective tax structures and how they influence the financial predicaments of their residents.
New York
New York is known for its bustling cities and high cost of living, and with that comes a substantial tax burden. The state has one of the country’s highest individual income tax rates, depending on income level. Additionally, property taxes are also among the highest in the nation.
California
California is home to some of the country’s biggest and most prosperous cities, but that prosperity comes with a price. The state has the highest top marginal income tax rate in the nation at about 13.3% and high property and sales taxes.
Connecticut
Connecticut may be small, but it has one of the highest tax burdens in the country. The state has a progressive income tax rate of up to 6.99%, and property taxes are some of the highest in the nation, making it difficult for residents to keep up with their financial obligations.
New Jersey
New Jersey is another state with a high cost of living and an equally high tax burden. The state has one of the highest property taxes in the nation, with an average effective rate of over 2%. Additionally, the top income tax rate can get to about 10.75%, making it challenging for residents to save and invest.
Illinois
Illinois is one of the few states that do not have a flat income tax rate, meaning higher-income earners pay more in taxes. The state’s sales tax is also one of the highest in the nation, making it challenging for residents to keep up with expenses.
Hawaii
Hawaii may be a tropical paradise, but it comes at a price. The state has one of the country’s highest income tax rates and imposes high property taxes on its residents. With a relatively high cost of living, these taxes strain Hawaii residents’ wallets.
Maryland
Maryland has multiple local income taxes, making it one of the most complex tax systems in the nation. The state also has high property taxes, and even though sales tax rates are relatively low, it still adds to the overall tax burden for residents.
Maine
Maine has a progressive income tax rate of up to 7.15%, and property taxes can be high, depending on the location. With a relatively small population, these taxes are often spread across fewer taxpayers, increasing the burden on each individual.
Vermont
Vermont boasts beautiful scenery and a laid-back lifestyle, but it comes at a cost. The state has one of the highest income tax rates in the country and imposes a sales tax on most goods and services. Property taxes are also relatively high, adding to the overall tax burden for residents.
Minnesota
Residing in Minnesota entails a substantial income tax rate of up to 9.85%, depending on your income level. The state also imposes a relatively elevated sales tax rate, presenting residents with the arduous task of managing expenses.
Iowa
Iowa may have a lower cost of living than other states, but its tax can still be burdensome for residents. The state has high property taxes and a progressive income tax rate that can get as high as 8.53%, depending on income level.
Massachusetts
Massachusetts is another state with multiple local income taxes, adding to the complexity of its tax system. With a relatively high cost of living, the state’s income and property taxes can be particularly challenging for residents to manage.
Nebraska
Nebraska is known for its agricultural industry, but it also has one of the highest property tax rates in the nation. The state has a progressive income tax rate, with the highest bracket sometimes reaching 6.84%, making it challenging for residents to keep up with expenses.
Wisconsin
Wisconsin may have a lower cost of living than other states on this list, but its taxes can still be burdensome for residents to manage. The state has a progressive income tax rate of up to 7.65%, and the sales tax rate can also be relatively high, contributing to the overall tax burden.
Rhode Island
Rhode Island’s small size and population mean taxes are often spread across fewer taxpayers, leading to a higher burden on each individual. The state has a top income tax rate of 5.99%, and property taxes can also be relatively high, depending on the location.
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