Benjamin Franklin once wrote, “In this world nothing can be said to be certain, except death and taxes.” If you’re like most Americans, paying Uncle Sam is your largest financial burden. In fact, the nation as a whole doesn’t earn enough money to pay its total tax bill for the year until mid-April. Making matters worse for some individuals, taxes can vary significantly between states.
WalletHub recently analyzed how state and local tax rates compare to the national median in all 50 states as well as the District of Columbia. The purpose was to determine which states pay the highest and lowest tax rates, and to see how each state stacks up against the national median. This comparison was based on nine different types of taxation: real estate taxes, state and local income taxes, vehicle property taxes, vehicle sales taxes, sales and use taxes, fuel taxes, alcohol taxes, food taxes, and telecom taxes.
Taxpayers in the states with the highest taxes pay four times more than those in the states with the lowest taxes. We recently took a look at the states with the lowest taxes – now, let’s take a look at the 10 states with the highest state and local taxes, according to WalletHub.