- Taxes can eat up a significant portion of your paycheck, but how much depends where you live.
- WalletHub recently analysed US tax data and discovered the best states for people considered “high income.”
- Considering state and local income taxes, property taxes, and sales taxes, WalletHub calculated the tax burden for a resident earning $US150,000 – that is, the percentage of their income spent on taxes.
- New York fared the worst for high-income residents, while no income-tax states Alaska, Nevada, and Wyoming top the list of best states.
“The more you make, the more they take.”
That’s a common criticism of our progressive tax system in the United States, but the Institute on Taxation & Economic Policy’s 2018 report found that the overall tax burden on a national level is actually higher for low-income families than it is for middle-income households and the top 1% of earners, meaning they pay more in taxes in relation to their income.
WalletHub used data from the Institute on Taxation & Economic Policy report to find out which states take the least amount of taxes from their high-income residents, calculated as a per cent of income.
WalletHub found the overall tax burden – comprised of sales and excise taxes, property taxes, and income taxes – for a $US150,000 annual income in every state. States where taxes make up the smallest share of income ranked highest.
New York fared the worst for high-income residents, while no income-tax states Alaska, Nevada, and Wyoming top the list of best states.
Below, check out the 25 best states to live for high earners and the total tax burden as a per cent of income.
25. Georgia – 8.21%
24. Missouri – 8.15%
23. North Carolina – 8.07%
22. Indiana – 8.01%
21. Arizona – 8.00%
20. South Carolina – 7.94%
19. Utah – 7.93%
18. Michigan – 7.89%
17. Mississippi – 7.77%
16. Idaho – 7.64%
15. Louisiana – 7.60%
14. Colorado – 7.58%
13. Washington – 7.32%
12. Montana – 7.28%
11. Texas – 7.05%
10. Delaware – 6.88%
9. Alabama – 6.31%
8. North Dakota – 6.01%
7. New Hampshire – 5.87%
6. South Dakota – 5.76%
5. Florida – 5.45%
4. Tennessee – 5.11%
3. Wyoming – 5.03%
2. Nevada – 4.31%
1. Alaska – 3.01%
- Read more about US taxes:
- What people at every income level from $US21,000 to $US266,000 will have to pay in taxes this year
- The 27 US states where millionaires face the highest taxes
- Alexandria Ocasio-Cortez has a plan to tax the wealthiest Americans 60% to 70%, and it highlights a detail about taxes most people get wrong
- Experts say small tax refunds are a good thing, but a look at how Americans spend the cash explains why they don’t feel the same
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