Different states tax their residences at different levels. In some states, like New Jersey, residents pay 12.2 percent as a percentage of their income. In others, like Alaska, they pay as little as 6.3 percent. 24/7 Wall St. reviewed a report recently released by the Tax Foundation to identify the states where residents paid the most and least in state and local taxes as a percent of income.
The total tax burden an individual pays refers to the percentage of state residents’ income that goes to state and local taxes, and, on top of that, what each person must pay the federal government. The equation that puts all of those numbers together is complicated, and is among the reasons that the debate over federal taxes is so heated. People often end up with payments to several tax authorities. Their nominal federal tax rate may mean very little when it comes to what must be paid to all applicable government bodies at the end of each year. The amount that a person keeps from each dollar that he or she earns can be affected more by local government needs than those of the federal government.
Read on to see the states where residents pay the most and least in taxes.
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