Oregon – Every year, people move to states where they don’t have to pay much or any taxes at all, leaving behind places where taxes take a big bite out of their wallets. But what’s the real cost for those stuck in high-tax states?
As we dive into tax season for 2023, FinanceBuzz did some digging into what folks around the U.S. might be shelling out in taxes based on their earnings last year. They crunched the numbers using info from the census and different tax rates to figure out what a typical family or single person has to pay in taxes.
Massachusetts residents will pay the highest taxes
Massachusetts tops the chart for single folks, with taxes eating up about 23.67% of their income this year. Oregon, Connecticut, Maryland, and New York are also high up there. Surprisingly, California, which many expect to have steep taxes, doesn’t hit the top 10. Instead, Utah and Minnesota make the list, with residents there paying around 21% of their income in taxes.
Here’s a quick look at the top 10 for individuals:
- Massachusetts (23.67%)
- Oregon (23.37%)
- Connecticut (23.19%)
- Maryland (22.58%)
- New York (21.97%)
- Virginia (21.80%)
- New Jersey (21.71%)
- Minnesota (21.51%)
- Illinois (21.32%)
- Utah (20.90%)
On the flip side, the places with the lowest tax rates are often in areas with fewer people. Florida has the lowest rate for individuals, with only 15.75% of income going to taxes. Other low-tax states include Wyoming, North Dakota, South Dakota, and Alaska.
Check out the states with the 10 lowest tax rates:
- Florida (15.75%)
- Tennessee (15.77%)
- Nevada (15.78%) [tie]
- South Dakota (15.78%) [tie]
- Texas (15.99%)
- Wyoming (16.02%)
- North Dakota (16.07%)
- Alaska (17.02%)
- New Hampshire (17.40%)
- Arizona (17.84%)
Remember, this is all about income tax. Some states with low or no-income tax make up for it in other ways, like higher property or sales taxes.
