Nov 132018
 

States with the highest and lowest taxes may not be the one’s that you think. This data is not limited to personal taxes, but also includes corporate taxes, which may account for some of the misconceptions.

Number one on the list of the states with the highest and lowest taxes is Alaska. Taxes paid as a percentage of income is 6.5%. No income tax is levied, but the property tax collections per capita of $2001, make it the 11th highest in that category in the nation. Some 57.2% of state and local revenue came from property taxes in fiscal 2015, and 8.8% came from corporate income tax, the second and third largest shares in the country.

Number two is South Dakota. South Dakota is only one of a few states with no corporate or personal income tax. Consequently, state and local governments depend heavily on sales taxes to meet budgetary obligations. Some 40.5% of the state’s tax revenue comes from sales taxes, the third hghest in any state.

Number three is Wyoming. Wyoming’s tax code is far less burdensome for the typical resident than most states. Accounting for about 40% of all U.S. coal production. Wyoming is the nation’s largest coal producer. Coal production is ot just a boon for the economy, but also to state and local government coffers. Resource extraction accounted for over $2.1 billion in tax revenue in 2016.

Fourth on the list is Tennessee. Taxes paid as a percentage of income were 7.3% Tennessee does have both a state income tax and property taxes, but they are some of the lowest in the country, overall. They make up for it with the 13th highest sales sales tax in the nation.

Texas rounded out our top five. Taxes paid as a percentage of income was 7.6%. They have no state income tax, but the 13th highest property tax in the country. Texas makes up for its taxes with the fifth highest sales tax in the entire United States.seen on


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