Good news: California is not the worst state for taxes
October 6, 2017
• It’s actually eighth worst in Kiplinger report
• “Americans should also keep an eye on state and local taxes”
Californians, stop griping about the taxes you pay. It could be a lot worse: You could live in Maryland or six other states that have higher tax burdens than the Golden State, according to data researched by the financial information publisher Kiplinger.
Kiplinger has released its rankings of the best and worst states for taxes as part of its fifth annual “Tax Map,” which reveals income taxes, sales taxes, gas taxes, “sin” taxes (for products such as alcohol and tobacco) and other tax rules and exemptions across all 50 states and Washington, D.C.
“As Congress mulls a new federal tax plan that may cut rates and eliminate deductions, Americans should also keep an eye on state and local taxes,” says Robert Long, managing editor at Kiplinger.com. “Depending on where you’re living, state income taxes and property taxes cost thousands of dollars every year.”
Kiplinger’s 10 Most Tax-Friendly States
3. South Dakota
6. North Dakota
Kiplinger’s 10 Least Tax-Friendly States
3. New York
10. New Jersey
California’s reputation as a high-tax destination is built in part on how aggresively it goes after big earners, with a 13.3 percent bracket that kicks in at $1 million (for single filers) of taxable income, says Kiplinger. “But for the income models that we used to calculate average effective tax rates, California came out midpack,” it says.