States with the Highest (and Lowest) Taxes

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The Ten States with the Highest Tax Burden

10. Pennsylvania
> Taxes paid by residents as pct. of income: 10.2%
> Total state and local taxes collected: $52.71 billion (6th highest)
> Pct. of total taxes paid by residents: 76.8% (10th highest)
> Pct. of total taxes paid by non-residents: 23.2% (10th lowest)

Pennsylvania collected more than $52 billion in state and local taxes in the 2010 fiscal year. Of this amount, 76.8% came from residents. Pennsylvania residents earned an average of $40,861 per capita in 2010, slightly below the $41,146 in the U.S. In 2010, residents paid 10.2% of their income to Pennsylvania and other states. Total tax payments to Pennsylvania from in-state came to $3,118 per capita. Pennsylvania’s sales tax of 6% is tied for 16th highest in the country. The state’s income taxes are low, at a flat 3.07% across all income brackets. However, local taxes can come to an additional 1% or more, with residents in cities like Philadelphia paying more than 1.5%.

9. Maine
> Taxes paid by residents as pct. of income: 10.3%
> Total state and local taxes collected: $5.84 billion(10th lowest)
> Pct. of total taxes paid by residents: 63.6% (14th lowest)
> Pct. of total taxes paid by non-residents: 36.4% (14th highest)

Maine’s residents had a state and local tax burden of 10.3% in 2010, up from 10.1% in 2009. The tax burden may continue to get worse for some residents. The Maine Center for Economic Policy believes that lower-income residents will soon see higher property tax bills, since the legislature cut payments to municipalities at the same time as it cut income, pension and estate taxes. The Center argues this will primarily benefit the wealthy. In the fiscal year 2010, Maine collected $1,655 per capita in property taxes, which comes to 4.53% of the average resident’s income. This is the sixth-highest rate in the country.

Also Read: States with the Most Student Debt

8. Massachusetts
> Taxes paid by residents as pct. of income: 10.4%
> Total state and local taxes collected: $33.48 billion (10th highest)
> Pct. of total taxes paid by residents: 76.5% (12th highest)
> Pct. of total taxes paid by non-residents: 23.5% (12th lowest)

The 10.4% tax burden on Massachusetts residents was up from 10% in 2009. Income per capita fell from $53,029 in 2009 to $51,991 in 2010. Individual income taxes are a major part of the State’s tax burden. Massachusetts collected $1,549 per capita in income taxes from the 2010 tax season, the third-highest amount in the country. Massachusetts’ per capita income was the third highest, behind Connecticut and New Jersey, and the total tax bill per capita of $5,422 was the fourthhighest. Property taxes collected of $1,845 per capita, were the eighth highest of all states.

7. Minnesota
> Taxes paid by residents as pct. of income: 10.8%
> Total state and local taxes collected: $24.36 billion (17th highest)
> Pct. of total taxes paid by residents: 76.7% (11th highest)
> Pct. of total taxes paid by non-residents: 23.3% (11th lowest)

Minnesota residents’ state and local tax burden was 10.8% of income in 2010, up from 10.3% the previous year and 10.0% back in 2005. The state received $4,727 in taxes from both residents and non-residents in 2010, the seventh-highest rate in the U.S. This was up from $4,651 in 2009. The state ranked in the top 10 in both high sales taxes and high individual income taxes. There were three different tax brackets, with the highest bracket of 7.85% on individual income over $77,730 ($137,430 for couples). This was higher than most top tax brackets in the country.

6. Rhode Island
> Taxes paid by residents as pct. of income: 10.9%
> Total state and local taxes collected: $4.81 billion (8th lowest)
> Pct. of total taxes paid by residents: 71.0% (24th highest)
> Pct. of total taxes paid by non-residents: 29.0% (24th lowest)

Rhode Island’s state and local tax burden was close to 11% in the 2010 tax season, as residents paid $4,627 per capita in taxes. More than $1,300 of this was paid by residents to other states where Rhode Islanders bought goods and conducted business–a higher per capita total than most states. Rhode Island’s top personal income tax bracket was 5.99% of income for those earning over $129,900. The state sales tax in Rhode Island was 7%, the second highest in the country, and its cigarette tax of $3.50 a pack was more than all but one other state.