Current Weather

temperature

74℉

mist

Tennessee has one of the lowest local tax burdens among states


Tennessee has one of the lowest local tax burdens among states

WALLETHUB

At the April 15 federal income tax filing deadline approaches, a new WalletHub survey of the state and local “tax burden” puts Tennessee near the bottom among states, with only Delaware (49) and Alaska (50) lower than the Volunteer state.

WalletHub, a personal finance web site, compared the 50 states across the three tax types of state tax burdens — property taxes, individual income taxes and sales and excise taxes — as a share of total personal income in each state.

New York had the highest state tax burden, 12.97%, and Hawaii was second with 11.71%. Tennesseans’ tax burden was 6.28%, with Alaska at 5.1%.

Red (Republican leaning) states had a lower total tax burden than Blue (Democratic leaning) states, with a 30.13 average ranking among the 50 states (1 being the highest rank, 50 the lowest). Blue states had an 18.4 average rank.

“In general, states with lower tax burdens grow faster than states with higher tax burdens,” said Andrew Felo, PhD, an associate professor at Nova Southeastern University. “There are some exceptions, though. Certain parts of California and New York are experiencing above-average growth despite heavy tax burdens.”

In order to determine the states that tax their residents the most and least aggressively, WalletHub compared the 50 states across the following three tax burdens and added the results to obtain the overall tax burden for each state:

  • Property Tax as a Share of Personal Income
  • Individual Income Tax as a Share of Personal Income
  • Total Sales & Excise Tax as a Share of Personal Income

See the full tax burden report HERE.

Source: WalletHub

About The Author

Related posts