Tax Averse? You Might Want to Avoid These High Tax States!
Some of the highest state tax burdens can be found in California, New York, Hawaii, Vermont and Minnesota. If you are thinking about moving to these states you may want to think again.
- California: California has the highest state income tax rate in the country, with a top marginal rate of 13.3% for individuals earning more than $1 million per year. California also has high sales taxes and property taxes.
- New York: New York has a top marginal income tax rate of 8.82%, which applies to incomes over $1,077,550 for single filers and $2,155,350 for married couples filing jointly. New York also has high property taxes and some of the highest gas taxes in the country.
- Hawaii: Hawaii has high income taxes, with a top marginal rate of 11%, and also has high sales taxes and property taxes.
- Vermont: Vermont has high income taxes, with a top marginal rate of 8.75%, and also has high property taxes.
- Minnesota: Minnesota has a top income tax rate of 9.85%, which applies to individuals earning more than $164,400 per year. Minnesota also has high property taxes.
Like many things in life, state tax rates can depend on income and can vary by income level. For those that hate paying federal income taxes adding a state (and even a city income tax) makes the tax burden that much worse. When moving for a better job or opportunity be sure the additional compensation outweighs the additional costs.
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