THE TOP 5 HIGHEST TAXED U.S. STATES in 2011 (you may be surprised)

Know What YOUR State’s current tax burden is?

Many states in the U.S are facing shrinking budget revenues, as a result they have approved:

“Many jurisdictions, many states, many counties, are broke,” said Carol Kokinis-Graves, senior writer analyst at CCH, a Wolters Kluwer tax-and-accounting businesss in Riverwoods, Ill. Along with cutting services, states are getting creative in finding additional revenues (like taxes on yoga classes and lots more sin taxes).

This report summarizes the TOP 5 HIGHEST TAXED U.S. STATES in 2011

Waterfront buildings in Baltimore © Walter Bibikow/Getty Images
Highest Taxed U.S. State No. 5: Maryland

Higher sales taxes are in the cards for Maryland residents. In 2010, income tax brought in $6.2 billion, compared with $3.8 billion in sales tax.

With a budget deficit of more than $1 billion looming, lawmakers are looking at tax increases on gasoline, medicine, online shopping and snacks. A proposed increase in the sales tax on alcohol, from 6% to 9%, is expected to add $84.8 million to Maryland’s 2012 revenue.

 

Highest Taxed U.S. State No. 4: Massachusetts
  • Income tax: 5.3% (flat tax rate)
  • Sales tax: 6.25%
  • Property tax per capita: $1,789
  • Inheritance tax: Estate taxes range from 0.8% to 16%

Even though Massachusetts residents are saddled with the highest amount of debt per person in the U.S. — $11,357 apiece in 2009, according to the Tax Foundation — it seems likely that the state income tax rate will be reduced this year. Voters moved to reduce it to 5% years ago, but the change has been blocked by lawmakers. With a $2 billion increase in tax revenue due to a strengthening economy — $723 million over the projected take — the tax rate will likely go from 5.3% to 5.25%, according to MassLive.

Highest Taxed U.S. State No.  3: New York
  • Income tax: 7.85% (8.97% on income over $500,001)
  • Sales tax: 4%
  • Property tax per capita: $2,009
  • Inheritance tax: Estate taxes range from 0.8% to 16%

The high taxes paid by New Yorkers aren’t helping to offset a big decline in revenue amid an economic slowdown.

An oft-suggested, ever-controversial stock-transfer tax seems to be off the table. A smoke break to think about how much New York would make whenever shares change hands is not recommended; the state has the country’s highest cigarette tax, at $4.35 a pack.

 

Highest Taxed U.S. State No. 2: New Jersey
  • Income tax: 6.37%
  • Sales tax: 7%
  • Property tax per capita: $2,625
  • Inheritance tax: See note*

Regularly listed as a state with one of the highest tax burdens, New Jersey is cited by the Tax Foundation as having the country’s highest property tax per capita. It is also one of 14 states to tax Social Security income, according to CCH.

* Transfer to a spouse, lineal descendant or charitable organization is tax-free; transfers to children-in-law are taxed at 11% to 16%; all other transfers are taxed at 15% to 16%


 

Highest Taxed U.S. State No. 1: Connecticut
  • Income tax: 5%
  • Sales tax: 6.35%
  • Property tax per capita: $2,381
  • Inheritance tax: 7.2% to 16% with $2 million exemption

High taxes in Connecticut are paired with the nation’s highest income per capita — $56,001 per person in 2010, according to the Bureau of Economic Analysis.

A sales tax increase took effect in July, raising the rate from 6% to 6.35% and adding a further 3 percentage point levy on luxury goods such as expensive cars and boats. The state collects the third-highest property taxes per capita and is one of 14 states to tax Social Security income, according to CCH.

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About GREGinSD

A Generation X|Y'er that resides in beautiful San Diego, Ca.
This entry was posted in Economics, Geography, Life, News and politics, Trends and tagged , , , , , , , , , , , , , , . Bookmark the permalink.

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