October 6, 2017 10:07am
• It’s actually eighth worst in Kiplinger report
• “Americans should also keep an eye on state and local taxes”
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.”
3. South Dakota
6. North Dakota
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.