These are the states where people have to pay the most in taxes

When it comes to taxes, not all states are created equal.

Citizens of West Virginia pay about $6,837 in taxes each year on average, while New Jersey residents pay more than three times as much, with an average tax bill of $22,829.

That’s according to data from the personal-finance company GoBankingRates, which analyzed several sources to find out the average tax burden for citizens of every state.

See also: The Trump tax calculator — will you pay more or less?

GoBankingRates looked at 2016 Census Bureau American Community Survey, which gives median household income levels, the real-estate website Zillow for median home value and property tax information, the American Petroleum Institute’s average gas consumption figures, the Tax Foundation’s numbers of state sales tax rates and Gallup’s estimates for average daily spending. The website HowMuch turned the analysis into a graphic.

The analysis did not take into account new tax rules that are part of the Republican tax plan, because those affect taxes in 2018 and onward.

The states that shoulder the highest amount per household each year in taxes were:

• New Jersey: $22,829

• Connecticut: $20,714

• Massachusetts: $20,115

• Washington, D.C.: $20,033

• Maryland: $19,615

One major reason for that was property tax, HowMuch said. Citizens of New Jersey pay an average of $7,163 each year for their property taxes, or roughly 31% of their total tax bill. That compares to just $544 in property taxes in West Virginia, which makes up 6% of the total tax burden. Under the new tax law, taxpayers with high property taxes won’t fare as well as they used to, because there’s now a limit on deductions for those property taxes.

See also: Stung by tax-law changes, Connecticut, New Jersey and New York plan to sue Washington

Some states pay much more than others because median household income plays a role in the calculations. Incomes tend to be high in areas such as New Jersey and Connecticut. The Republican tax plan that President Trump signed into law in December 2017 lowers tax rates for many Americans.

The states that had the lowest total tax burdens were:

• West Virginia: $6,837

• Montana: $7,035

• Mississippi: $7,086

• Kentucky: $7,537

• Arkansas: $7,858

Filed in: Top News Tags: 

You might like:

CryptoWatch: Crypto market cap hits 4-week high, but intraday volatility remains CryptoWatch: Crypto market cap hits 4-week high, but intraday volatility remains
Need to Know: Watch for ‘violent selloff’ to thwart Saudis’ wish for $100 oil Need to Know: Watch for ‘violent selloff’ to thwart Saudis’ wish for $100 oil
Young people apparently don’t realize these popular ‘crème brulée’ e-cigarettes contain nicotine Young people apparently don’t realize these popular ‘crème brulée’ e-cigarettes contain nicotine
Economic Report: Philly Fed manufacturing index points to continued growth in April Economic Report: Philly Fed manufacturing index points to continued growth in April
Bond Report: 10-year Treasury yield extends climb as earnings lift appetite for stocks Bond Report: 10-year Treasury yield extends climb as earnings lift appetite for stocks
Economic Report: Jobless claims fall slightly to 232,000 in late April Economic Report: Jobless claims fall slightly to 232,000 in late April
Currencies: Dollar searches for catalyst as risk sentiment improves Currencies: Dollar searches for catalyst as risk sentiment improves
America’s fastest-growing plastic surgery procedure takes place below the belt America’s fastest-growing plastic surgery procedure takes place below the belt

Leave a Reply

Submit Comment
© 2018 Stock Investors News. All rights reserved. XHTML / CSS Valid.