This Map Shows How Taxes Differ by State
For most of us, taxes are our largest recurring expense, overtaking housing, transportation, and other expenses. Thus, in addition to your federal income tax, how much your state charges you has a lot to do with your financial picture.
When we recently posted a map showing the counties with the highest property tax rates , more than a few readers were asked to compare other taxes: state income tax, sales tax, and other tax liabilities. It is very difficult to get a complete picture thanks to the specific rules set in each state, but the Kiplinger tax card above summarizes the various taxes by state and ranks them according to how tax-friendly they are.
Criteria included in the card: State sales tax, income tax range, gas tax per gallon, average property tax (tax on the state’s average home value), inheritance and property tax, sin taxes (alcohol and tobacco), vehicle taxes and road tolls (hotel and car rental taxes).
On an interactive map, you can select up to five states to compare their taxes side by side or read about each state individually.
Another Kiplinger’s card for retirees shows how the tax on retirement income (including social security benefits) is set and whether there are tax credits for seniors.
All in all, this is something else to think about if you are thinking about where to live. Unfortunately, not only is it harder to make a living in some states , depending on where you live, most of your money will go towards taxes.
State Tax Guide | Kiplinger