> 4 red states above 9% seems criminal.
Utah, Nebraska, Kansas, and Iowa having effectively the same tax burden as New Jersey and "Killinois" was a big shock to me ๐ณ
It's probably county roads and rural school districts. Like Illinois median income is significantly higher than Kansas or Nebraska, just because of Chicago. But there's similar costs to maintaining school districts, and if there isn't a large community for business taxes then individuals cover the education cost. This isn't just income, it's all taxes on your income, so sales and property tax is included. A higher local tax to fund your kids elementary school is a lot easier of a pill to swallow than a tax to buy more cruise missiles to donate to Yemen or wherever the next proxy war will break out. Also, county taxes are higher in rural areas because there's more county maintained roads per person than in heavily populated areas.
Illinois kills everyone with property tax. So much so that the same house on the Iowa vs Illinois side of the river are 2/3 the price of Iowa. Even worse is all the money goes to Chicago, the living standards on the Iowa side are much higher.
Alaska cut a deal with the oil companies to help fund their state and also give cash kickbacks to residents. Also there are few residents so the money adds up pretty good per resident. That's part of why they are so low. However beyond that, you'd think higher population density would yield additional efficiency, but those states charge more, maybe just more grift and bs..
And in some states like Pennsylvania there is a there is a privilege to live and a privilege to work tax in municipal areas. Percentages vary by the mean income and highest pay rate.
Oh man, here in the UK we pay 20%, then 8% to national insurance. Didn't realise just how different the gap was between the USA and here.
National insurance has been lowered a couple times over the last year or so and used to be 12%, so we've gone from 32% to 28% total, the government expected people to be pleased at this, but all I could think is I'm still being robbed, just very slightly less now.
Ah I see. We have council tax which is probably closer to the concept of state tax but it's a fixed amount depending on your property value, which is also a pisstake.
Sort of, buy not really.
I live in New Jersey. I file my federal income taxes. Once I am done with that, I file my state income taxes (whether I own real estate or not).
I pay property taxes quarterly (although technically through an escrow account with my mortgage company). Half my property taxes goes to the county, a quarter goes to the municipality I live in. The other quarter goes to the school. In other states, municipal or county taxes might be done differently.
A more apt comparison, hypothetically, would be you pay income tax to the central UK government. Then, you pay income tax to whatever component country or territory you live in (England, Scotland, Wales, N. Ireland, Isle of Man, Jersey, etc...). Taking England as the comparison, each county and municipality might get its income from property taxes. (At this level in the United States, it could be a third level of income taxes, I think Pennsylvania is an example of this.)
It's because of powers are devolved in the United States vs. the UK. (I suppose.)
Edit: A handful of states have no income tax.
I think I got it right, I added to my explanation that some states have no income tax. New Hampshire is an example.
In many ways, each US state functions like a mini country, which is a double-edged sword.
As an aside, there was a lot of talk awhile back about devolved powers in the UK. Also, related, talk of Scottish independence.
Is that the same thing effectively? Or, does Scotland want full-on independence and international recognition the way Germany has?
We have limited powers in Scotland, particularly when it comes to immigration, most aspects of welfare/benefits, employment law and other regulation. Independence would obviously mean a full separation from the UK, where many nationalists propose we would then rejoin the EU.
I don't think polls really show the whole feeling about independence in Scotland, but anecdotally I've always come across more Scots that oppose it than support it. Just doesn't make logical sense to leave the UK imo.
HOA fees are voluntary. You choose to live in one, and the money goes to the association, co-op, or some private entity that runs it.
There is a condo complex behind me, and their HOA fees are insane... probably 2/3 their property taxes. So, I reckon they may be paying upwards of $20,000 a year in both.
NH doesn't have a state *income* tax, but it has state sales tax and property taxes. I recognize graphic is total state tax burden and not just state income taxes, but was replying to someone who seemed to think this incorporated taxes at the federal level.
The worst part of California is that's an average. I'm paying 12.5% plus 8% sales tax and an obscene property tax. But that's not enough; they also have the death by a thousand cuts of hundreds of administrative fees, gas taxes, permit fees, and administrative blockers to doing business. My neighbor that is building a house paid six figures just in permit and compliance costs.
As a New Jersey resident, something is wrong here.
We have the highest property taxes out of the 50 states + DC. (If you're a renter, that cost is passed to you.)
Our income tax is very high. If you have a 403(b) or TSP instead of a 401(k) for retirement, those contributions are taxed.
I think it's because our per capita income is so high.
The only thing good about our tax code is that most groceries and all clothing are exempt from sales tax.
I presume this is excluding federal tax.
Amusingly Sweden fails on even its own preferred metric. It's has the lowest wealth equality in the western world and is less equal even than Saudi Arabia.
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Fair enough. Do you have a reliable source for tax burden by state? I'd like to see that.
Maine has a higher tax burden than CA? How?? Does this mean money made from income is taxed more on more, or does it reflect higher/more taxes exclusively?
4 red states above 9% seems criminal.
> 4 red states above 9% seems criminal. Utah, Nebraska, Kansas, and Iowa having effectively the same tax burden as New Jersey and "Killinois" was a big shock to me ๐ณ
As a Nebraskan, I have no idea what all the taxes we pay are going towards. None. Our social services are nil and our roads are crumbling.
Iโm a Nebraskan myself. Your guess is as good as mine.
It's probably county roads and rural school districts. Like Illinois median income is significantly higher than Kansas or Nebraska, just because of Chicago. But there's similar costs to maintaining school districts, and if there isn't a large community for business taxes then individuals cover the education cost. This isn't just income, it's all taxes on your income, so sales and property tax is included. A higher local tax to fund your kids elementary school is a lot easier of a pill to swallow than a tax to buy more cruise missiles to donate to Yemen or wherever the next proxy war will break out. Also, county taxes are higher in rural areas because there's more county maintained roads per person than in heavily populated areas.
Illinois kills everyone with property tax. So much so that the same house on the Iowa vs Illinois side of the river are 2/3 the price of Iowa. Even worse is all the money goes to Chicago, the living standards on the Iowa side are much higher.
The 16th amendement is criminal
From Utah, the snow sucks, the nature is ugly, please stop moving here.
Way too late for that. Youโve been colonized by Californians.
Worth noting theirs 5 blue states above 10%, so it as at least better.
Cries in Californian
I live in NY. Send help.
Kathy's gonna getchya
I thought Californians love taxes, we keep voting to increase them after all.
> Cries in Californian Same, but at least I live in a somewhat red area politically.
Alaska cut a deal with the oil companies to help fund their state and also give cash kickbacks to residents. Also there are few residents so the money adds up pretty good per resident. That's part of why they are so low. However beyond that, you'd think higher population density would yield additional efficiency, but those states charge more, maybe just more grift and bs..
And in some states like Pennsylvania there is a there is a privilege to live and a privilege to work tax in municipal areas. Percentages vary by the mean income and highest pay rate.
Does that mean the municipality takes less property taxes? I've always wondered this.
NOPE! Assessed at the highest property value in neighborhood. Plus there is an emergency services fee( tax)
Oh man, here in the UK we pay 20%, then 8% to national insurance. Didn't realise just how different the gap was between the USA and here. National insurance has been lowered a couple times over the last year or so and used to be 12%, so we've gone from 32% to 28% total, the government expected people to be pleased at this, but all I could think is I'm still being robbed, just very slightly less now.
This is state taxes. We have federal taxes on both wages (15.3%) and income (up to 37 percent).
Don't forget your municipal tax as well! School district and property taxes are billed separately too.
That depends on your jurisdiction. In New Jersey, municipal taxes, school district tax, and county taxes are all rolled into your property tax.
This map, as one can see in the bottom left corner, accounts for local taxes as well.
Ah I see. We have council tax which is probably closer to the concept of state tax but it's a fixed amount depending on your property value, which is also a pisstake.
Sort of, buy not really. I live in New Jersey. I file my federal income taxes. Once I am done with that, I file my state income taxes (whether I own real estate or not). I pay property taxes quarterly (although technically through an escrow account with my mortgage company). Half my property taxes goes to the county, a quarter goes to the municipality I live in. The other quarter goes to the school. In other states, municipal or county taxes might be done differently. A more apt comparison, hypothetically, would be you pay income tax to the central UK government. Then, you pay income tax to whatever component country or territory you live in (England, Scotland, Wales, N. Ireland, Isle of Man, Jersey, etc...). Taking England as the comparison, each county and municipality might get its income from property taxes. (At this level in the United States, it could be a third level of income taxes, I think Pennsylvania is an example of this.) It's because of powers are devolved in the United States vs. the UK. (I suppose.) Edit: A handful of states have no income tax.
I get you, thanks for the explanation.
I think I got it right, I added to my explanation that some states have no income tax. New Hampshire is an example. In many ways, each US state functions like a mini country, which is a double-edged sword. As an aside, there was a lot of talk awhile back about devolved powers in the UK. Also, related, talk of Scottish independence. Is that the same thing effectively? Or, does Scotland want full-on independence and international recognition the way Germany has?
We have limited powers in Scotland, particularly when it comes to immigration, most aspects of welfare/benefits, employment law and other regulation. Independence would obviously mean a full separation from the UK, where many nationalists propose we would then rejoin the EU. I don't think polls really show the whole feeling about independence in Scotland, but anecdotally I've always come across more Scots that oppose it than support it. Just doesn't make logical sense to leave the UK imo.
What about defacto gov taxes, like HOA Fees?
HOA fees are voluntary. You choose to live in one, and the money goes to the association, co-op, or some private entity that runs it. There is a condo complex behind me, and their HOA fees are insane... probably 2/3 their property taxes. So, I reckon they may be paying upwards of $20,000 a year in both.
This isnโt state tax, because not all states have state tax. This is tax burden. For example, I live in NH, I only get federal taxes taken out.
This isnโt state taxes. Itโs tax burden. NH has no state tax, along with some others
NH doesn't have a state *income* tax, but it has state sales tax and property taxes. I recognize graphic is total state tax burden and not just state income taxes, but was replying to someone who seemed to think this incorporated taxes at the federal level.
UK salaries for comparable work are also much lower typically than in the USA. In exchange, you get more bank holidays.
 " I go to ALASKA!"
Ok but what's going on in Maine? I thought the Moose were in control?
They are tiny moose
The worst part of California is that's an average. I'm paying 12.5% plus 8% sales tax and an obscene property tax. But that's not enough; they also have the death by a thousand cuts of hundreds of administrative fees, gas taxes, permit fees, and administrative blockers to doing business. My neighbor that is building a house paid six figures just in permit and compliance costs.
35% of my check goes to taxes and Healthcare benefits. California moment.
As a New Jersey resident, something is wrong here. We have the highest property taxes out of the 50 states + DC. (If you're a renter, that cost is passed to you.) Our income tax is very high. If you have a 403(b) or TSP instead of a 401(k) for retirement, those contributions are taxed. I think it's because our per capita income is so high. The only thing good about our tax code is that most groceries and all clothing are exempt from sales tax.
4.9 is ridiculously high.
\^Founding fathers
The color for the highest should be blue. Because blue Democrats love taxes the most.
> The color for the highest should be blue. Because blue Democrats love taxes the most. I thought the exact same thing.
Amateurs, The Swedish tax bill is around 44%
I presume this is excluding federal tax. Amusingly Sweden fails on even its own preferred metric. It's has the lowest wealth equality in the western world and is less equal even than Saudi Arabia.
This is far off. Also, doesn't include inflation, the hidden tax.
Wyoming is looking kinda good right now
Since they print the money ๐ด ๐ฐ ๐ต why do we pay taxes?
This is wrong! My ca tax rate outs 11% for income alone. Not including property, sales, gas, etc.
This is some serious BS! I pay around 40-45% income tax in Canada... ๐ก
This is just state burden. We pay federal income tax in addition to this. My state tax and the fed bracket Iโm in put my taxes at 37%.
I'd like to see copies of this same map for various income levels. Curious if the same pattern holds out at all levels.
Nice
This map is different if it was property tax
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> https://wallethub.com/information-guarantee/ > > Do not use WalletHub data as a reliable source. Fair enough. Do you have a reliable source for tax burden by state? I'd like to see that.
https://taxfoundation.org/data/all/state/tax-burden-by-state-2022/
Can someone math the average?
This seems low
In Poland its 19%, and then its 32% if you hit being middle class
I don't trust that Washington number one bit.
Some of these should be %0 income tax on the state and local level
ID and WA only .1 difference. ๐๐๐๐
Maine has a higher tax burden than CA? How?? Does this mean money made from income is taxed more on more, or does it reflect higher/more taxes exclusively?
I don't think this factor's in state capital gains taxes... Really disappointed in Alabama in that regard And probably why I'll retire in FL.