In Honor of Tax Day: Tax Rates Across America

Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

Published by Debra TaylorCPA/PFS, CDFA, JD | April 18, 2016

In case you didn’t know, state and federal taxes are very different!  Generally speaking, federal income taxes are non-negotiable.  What does this mean?

Basically, no matter where you live, your federal obligation is essentially the same.  State taxes, on the other hand, vary from state to state and, therefore, the same taxpayer could owe very different state taxes depending on where they live.

The highest tax states demand approximately three times the amount of taxes of the most lowest tax states.  Indeed, several states require no “income tax” at all.  That’s why choosing the “right” dwelling place can make a huge difference when it comes to saving on your taxes, especially for wealthy taxpayers.

404b3adc-a5d0-44b7-acd1-24063711f011

recent survey performed by WalletHub compared state and local tax rates (“income tax” includes various definitions) in the 50 states and the District of Columbia against the Median U.S. Household to determine which states’ relative income tax obligations were the highest.  The findings from the study revealed that, for 2016, the 10 states with the highest tax rates are:

0f363309-e2b7-4e38-8a65-7bd44e3314b9

The 10 states with the lowest tax rates are:

02bd4424-8987-4385-8d57-9c9c513ea2e8

You can click here to see the full results for all states.

The top ten results for highest and lowest rates are not all that surprising.  It’s no secret that New Jersey and New York impose some of the highest tax rates in the country.  Likewise, there’s a reason why many people move to and retire in Florida – taxes are low.  So, if you’re thinking about relocating and you’re not married to any specific area of the country, consider moving to a lower tax rate state and save yourself some tax dollars.

On that note, HAPPY TAX DAY!!!

Share:
facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.
Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

RECENT POSTS

Your Silicon Valley Bank Questions Answered

You likely have heard about the recent Silicon Valley Bank (SVB) collapse and probably have questions. Here, we provide you with unbiased answers to your questions.

Thinking About Retiring Early? 8 Things to Consider First

Tom Fridrich, JD, CLU, ChFC®, Senior Wealth Planner We’ve all asked ourselves whether it’s too early to retire (usually after a particularly challenging commute or dealing with a difficult client).  You may have even gone so far as to take a sneak peek at your account statements …

Weekly Update: February 27th

By Debra Taylor, CPA/PFS, JD, CDFA™ Dear Friends, For investors, it may feel like déjà vu all over again as inflation and the Fed dominate market headlines on a day-to-day basis. After all, the numerous market swings last year were driven by ever-changing expectations around the Fed – …

4 Tips to Take Your 401(k) to the Next Level

Matt Kory, Vice President, Retirement Programs As a retirement income vehicle, the 401(k) is second in popularity only to Social Security – and as CNBC reported in 2019 the number of 401(k) millionaires is at an all-time high. But is a million dollars even enough for your retirement needs? 

1 2 3 224 225 226

Get in Touch

In just 15 minutes we can get to know your situation, then connect you with an advisor committed to helping you pursue true wealth.

Schedule a Consultation

TweetsFollow Us