Your State Income Tax is WHAT?

[Loophole LaRue, SASS #51438]

Hmmm...seems there are a few states whose middle class income tax rates, combined with the Federal bite, exceed 50% of your earnings, and a few others that are not far behind:

 

5 States that Will Take the Most of Your Paycheck in Income Taxes

 

By Caroline Zaayer Kaufman
Monster Contributing Writer

 

If you’re planning a move to another state for work it might be wise to consider what you’ll pay in property tax, sales tax and, of course, how big of a chunk the state government is going to take out of your paycheck. The federal government will get its share wherever you go, but states can vary widely in how much they collect from your income, so state taxes should be a factor you take into consideration as you work to decide if and where to relocate.

 

While state income tax rates vary by your income bracket and circumstances, there are some states that will certainly take a bigger bite out of your paycheck than others, and seven that levy no income tax at all: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming.

 

For income tax collections per capita in 2011, the Tax Foundation reports that New York leads the pack at $1,864 per person. The next four in line are: Connecticut ($1,808), Massachusetts ($1,765), Oregon ($1,425) and Minnesota ($1,404). (These are also the states with the highest per capita incomes.)

 

Here are the states with the highest top income tax rates and the highest rates for the middle class, according to studies by the Tax Foundation and the Heritage Foundation.

 

1. California and Oregon

California
Top tax rate: 13.3 percent.
With the highest top income tax rate in the nation, California takes more from its top earners than any other state.

Oregon
Middle class tax rate: 9 percent.
When combined with federal income tax, middle class residents of Oregon can expect to hand over 52.3 percent of their income to the government.

 

2. Hawaii and Maine

Hawaii
Top tax rate: 11 percent.
Hawaii also holds the second place spot for sales/excise tax collection per capita, taking $2,394 on average.

Maine
Middle class tax rate: 8.5 percent.
Including federal taxes, Maine’s total marginal income tax rate is 51.8 percent.

 

3. Oregon and Idaho.

Oregon
Top tax rate: 9.9 percent.
Oregon is the only state that lands on the top five lists in all three categories we looked at here: top income tax rates, middle class income tax rates and income tax collection per capita.

Idaho
Middle class tax rate: 7.8 percent.
Idaho ranks twelfth highest among states levying an individual income tax.

 

4. Iowa and Hawaii

Iowa
Top tax rate: 8.98 percent.
Iowa is the only landlocked state in the top five for highest top income tax rates, and also holds the number one spot for the highest corporate income tax rate at 12 percent.

Hawaii
Middle class tax rate: 7.6 percent.
Hawaii frequently appears on lists of highest-taxing states.

 

5. New Jersey and Minnesota

New Jersey
Top tax rate: 8.97 percent.
New Jersey is also the state with the highest property taxes in the U.S.

Minnesota
Middle class tax rate: 7.1 percent.
Additionally, Minnesota’s corporate income tax rate is third highest in the nation at 9.8 percent.

 

That Bitcoin business is looking better and better.....

 

LL

[Billy Bristol]

Only seven states lack an income tax altogether. They are:

• Alaska
• Florida
• Nevada
• South Dakota
• Texas
• Washington
• Wyoming

 

And two statesonly have a limited income tax on individuals. These states tax only dividend and interest income:

• Tennessee
• New Hampshire

[Assassin]

Some states allow counties to piggyback the state income tax. Maryland counties can charge up to 7.5% I believe. Perhaps one of those lucky Marylanders can tell us the going rate. I'm just glad I live in a non-state income state.

[JudgeBagodonuts]

Federal withholding, State withholding, Local earned income, Social Security, Medicare, State unemployment tax, School taxes, and property taxes combined mean my wife and I are paying out 54% of our income to taxes here in Pennsylvania. When we retire, we're going to establish our residency in either Texas or Florida, and come visit our relatives here during the hot summer months.

[Big Sage, SASS #49891 Life]

Been here in Colorado for 14 years since I retired. Paid exactly 0 in state income taxes since I've been here.

[Eyesa Horg]

In Vermont--- My school taxes ( and I've never had kids ) are about 1/3 of my income, the state income tax amounts to abt. 6% and the Feds. take what ever is left over. Thank God for reloading or CAS would be a distant memory.

[Cheyenne Culpepper 32827]

but you have to consider other costs besides taxes, Oh has income tax, but tags for cars are less and once the sales tax is paid all tags for cars the tags are all the same price.

 

plus insurances in some states are much more than others..

 

just saying... gotta look at the whole pic.....

[Loophole LaRue, SASS #51438]

but you have to consider other costs besides taxes, Oh has income tax, but tags for cars are less and once the sales tax is paid all tags for cars the tags are all the same price.

 

plus insurances in some states are much more than others..

 

just saying... gotta look at the whole pic.....

CC:

 

I agree; NH, for instance, has no state income tax on earned income, yet taxes the hell out of you on property tax to pay for schools and such. There is no pure tax haven in the US - you either pay through the nose for municipal services, or you live with moderate taxes but higher fees or limited services.

 

Trying to project your future tax burden and your expenses in retirement can be a tricky proposition.

 

LL

[Cheyenne Culpepper 32827]

and some retirement incomes can be taxed by the state in which they were earned even if living elsewhere.... ugh!!!!

 

we've been trying to figure out which state to claim, OH or FL...

[Hacker, SASS #55963]

 

Only seven states lack an income tax altogether. They are:

• Alaska
• Florida
• Nevada
• South Dakota
• Texas
• Washington
• Wyoming

 

And two statesonly have a limited income tax on individuals. These states tax only dividend and interest income:

• Tennessee
• New Hampshire

 

 

Last time I lived in NH they had a very health TAX on booze.

[Hacker, SASS #55963]

We know where the money comes from.

We know where it goes more small percentage to defense, large percentage to useless social spending, debt service and payments to elected morons that destroy this country.

[Elk Creek LeMieux]

Tennessee has a 9% sales tax, to make up for no individual income tax, depending on the item I believe. Seems like I didn't pay 9% on the last truck, or the tractor, that we bought.

 

But I don't pay income tax and our property tax is farm tax so, we're doin better there than some people I know. My pickup and my wife's both have permanent tags too, so I get to skip a couple hundred a year in road tax.

[Frio Kid, SASS #31915]

No income tax and no sales tax on food in Texas. Since food is probably on of your largest expenses per month for retired people that is a pretty big deal. Property tax can be high in the larger cities and suburbs, not too bad in the countryside.

[Yul Lose]

Way to much.

[Kulshan 20262]

Oregon has no sales tax. Some chose to live in Washington and shop in Oregon, but if you buy a car in Oregon Washington will get thier due when it is registered.