Taxes aren’t everyone’s favorite topic, but they’re important to discuss, especially when so much of our earnings go toward them. Today, we’re looking at the biggest tax burdens. In most of these states, the middle class desperately tries to get out simply because the taxes are so high.
New York
This information comes from a Tax Foundation report. In first place is New York, which has a tax rate of 15.9%, meaning that each New Yorker pays around $12,093 a year on taxes alone. Unsurprisingly, some people are looking for a cheaper zip code, as the Empire State just doesn’t seem worth that price.
Connecticut
Connecticut isn’t far behind New York at a tax rate of 15.4% and $12,151 per person. That’s enough to buy a good used car each year, although nowhere near as fun. It’s one of those things that’ll definitely make you think twice about living in the land of steady habits and, sadly, increasing taxes.
New Jersey
In New Jersey, living expenses include an effective tax rate of 13.2%, which translates to about $9,648 per person each year. Living right next to the Big Apple doesn’t come cheap, and these numbers are a clear example of that. Many middle-class families are packing up and heading out of the state because of this.
Illinois
In Illinois, the effective tax rate is roughly 12.9%, which means the average Joe or Jane pays around $8,390 a year just in taxes. Those deep-dish pizzas don’t look so delicious now, do they? This high cost has forced some people to consider whether it’s actually worth staying somewhere like this.
California
It’s no surprise that California’s so high on this list because some places have higher property taxes than the national average. The effective tax rate here is 13.5% or around $10,167 annually for every Californian. You won’t find it here if you’re dreaming of a more easy-going West Coast lifestyle.
Minnesota
Minnesota has a chilly tax rate of 12.1%, around $7,763 per person annually. For many residents, this means they’ve got to budget even more carefully to ensure they can keep up with the ongoing financial demands. The Land of 10,000 Lakes does not seem so welcoming after all.
Maryland
Maryland’s beautiful natural views and waterfronts come at a cost of an 11.3% tax rate. Marylanders fork over $7,680 annually, making several people think twice about settling down in the Old Line State. If you’re looking to stretch your dollars further, you won’t exactly be able to do that here.
Vermont
Even in a state as small as Vermont, the tax rate is high at 13.6%, which is about $7,958 per person annually. This rate is enough to make you reconsider whether New England is worth it since your paychecks will feel lighter each time. It doesn’t matter if you’re a young professional or a retiree because you’ll budget carefully.
Rhode Island
Like Vermont, Rhode Island is a small state, but don’t let that fool you. Each year, Rhode Islanders pay about $6,948 in taxes thanks to that 11.4% tax rate, which makes things pretty difficult. If the tax rate wasn’t bad enough, the state also has a high cost of living, so it’s no surprise that many people are heading out.
Maine
Maine’s delicious seafood doesn’t come cheap at a tax rate of 12.4% or $6,906 annually per person. Of course, Maine is one of the most beautiful states around, but beauty doesn’t pay your taxes, and this pushes some people into other states. Some businesses are avoiding the state completely because of these high taxes.
Washington
Although there’s no state income tax in Washington, Uncle Sam has other ways of getting money from his residents. This mostly comes from the state’s overall tax rate of 10.7% or $7,803 per capita, so the benefits of no state income tax don’t seem so great anymore. It’s causing issues for everyone here, whether that’s Seattle’s tech workers or Yakima’s apple farmers.
Iowa
You might think Iowa’s a place to sit and enjoy that good old Heartland life, but that’s sadly not true. Residents here pay $6,886 yearly because the tax rate is 11.2%, which can really eat into your budget. This makes many people rethink their spending and whether all that rural beauty is worth it.
Ohio
Ohio’s tax rate is slightly lower at 10%, which is an annual bill of about $5,530 per person. This isn’t the highest rate, but it’s enough to cause issues for some residents and make them question whether it would be better to live elsewhere. After all, this constraint drain affects their everyday expenses and financial planning.
Wisconsin
Wisconsin residents pay about $6,231 in taxes each year, as the rate is roughly 10.9%. That’s quite a big part of anyone’s budget, and it means there’s a lot less to spend on those famous local cheeses. For some families in the state, moving to somewhere a little cheaper makes a lot more sense.
Nebraska
In Nebraska, the tax rate is 11.5%, which is around $6,270 in taxes per person each year. This affects all kinds of expenses, including how much families can spend on having fun and how well local businesses are doing. Everyone has to account for this chunk of change; sometimes, it’s too much to handle.
Kentucky
In Kentucky, some people are struggling to save up for their future plans, and this is mostly because the tax rate is 9.6%. Each resident pays around $4,669 in taxes each year, which causes some serious issues for them. You can’t exactly save for the future when you’re constantly worried about taxes.
Michigan
Michigan doesn’t have the highest tax rate at 8.6% or $4,720 per person, but it’s high enough to cause concerns for some locals. Income tax was originally at 4.05% and then increased to 4.25% in 2024. There’s also the 6% sales tax to worry about, so it’s hitting people from every angle.
North Dakota
North Dakota’s tax rate is 8.8%, which is around $5,404 per person. That might seem modest at first, but it means some families struggle to achieve their financial dreams. Buying a home or making investments is a lot harder, and life here isn’t as peaceful as you might think.
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