The Worst States for TaxesPublished:
Do you live in one of the worst states for taxes? If so, you pay more in state taxes and local government taxes than many people in other parts of the country. Even if you cannot do anything about it, it is good to know if you live in one of the worst states from a state tax standpoint. Of course, this is good information to have if you are considering a move to another state.
For 2010, the worst states for taxes include: Vermont, Wisconsin, Rhode Island, Maryland, Iowa, Ohio, California, New York, and New Jersey.
Residents of New Jersey, for example, pay approximately $12 in state taxes for every $100 earned. This is in stark contrast to residents of Wyoming, who only pay $7 in state taxes per $100 earned.
What makes the above states so bad in terms of taxes? Well, it varies based on the state. Year after year, it seems that New Jersey is known as the worst place to live in terms of the state taxes paid by residents. There is a top individual income tax rate of 10.75 percent, a top corporate tax rate of 9.36 percent, and state sales tax coming in at 7 percent. When compared to other states, such as those known to be best for state taxes, it is easy to see just how bad this really is.
California has also been singled out as a state that goes overboard when it comes to state taxation. The corporate tax has a maximum of 3.4 percent. Along with this, the sales tax rate is 8.25 percent. The individual income tax weighs in at 10.55 percent for earnings over $1 million, and 9.55 percent for earnings in excess of $47,055.
New York never has a problem being known as one of the worst states for taxes. Not only are residents taxed at a high level by the state, but many local governments get their share as well. At this time, there is a 4 percent sales tax in the state, as well as a maximum individual rate of 8.97 percent and a top corporate rate of 7.1 percent.
By comparing the worst states for taxes against the best, you will immediately see that residents are paying as much as $5 more in state taxes per $100 earned.
Above are the worst states for taxes. If you live in one of these states, you are paying more in state taxes than most residents in other parts of the country.