The average American household pays roughly $17,000 in federal income taxes each year. And while we’re all faced with the same burden in that regard, there is significant disparity when it comes to state and local taxes. For example, taxpayers in the most expensive states spend three-times more to meet their civic burden than those in the cheapest states.
As you might expect, differences in state tax obligations – as well as the services for which funds are used – can have an impact on populous migration and thus the strength of local economies. Such trends are clearly evidenced at the top of the socioeconomic totem pole, with professional athletes, for example, often taking up residence in Florida or Texas for the tax break. And while academic research shows state and local taxes to have a negligible impact on overall population movement, one has to conclude that it makes a distinct difference on the individual household level.
It’s therefore fair to wonder: Which states have the most and least burdensome taxes?Thank you for viewing the Incline Village Real Estate blog. If you require additional information or discussion please contact me via Randy@RandyBull.com.
