I promise this is the last blog posting (at least for this week) reviewing, examining and comparing income taxes.
While most Americans either file their taxes or an extension on or before April 15th, their income tax obligation did not necessarily end with the IRS. All but seven states also have state-level income taxes. Once again I reference the Tax Foundation, which is truly the go-to source for comparative tax information for the United States. The Tax Foundation, a non-profit research group located in Washington, D.C. and is dedicated to educate taxpayers about sound tax policy and the size of tax burdens borne by Americans at all levels of government.
The following map (used with permission of the Tax Foundation), details each state’s top marginal income tax rate.
Granted, the state income tax is one of several revenue generators for governments, so there may be tradeoffs. Texas, for example, has no state income tax, but property taxes are steep.
The following tables lists the top-10 states with the greatest marginal income tax rate for 2013, and also those 10 states with the lowest (or no) state income taxes—plus all states in between.
How important are state income tax revenues to each state? The following table, again a Tax Foundation source, lists the top and bottom 10 state’s income tax revenue as a percent of all state and local tax revenues for fiscal year 2010. The seven states that have zero income taxes do not necessarily have the same rankings on other taxes such as property taxes, franchise taxes, unemployment taxes, real estate transfer taxes…. To see a complete ranking the major taxes by state refer to an earlier blog this year (again based on the bountiful tax studies by the Tax Foundation).
To see the entire country, click here.
While taxes due are not necessarily the only criterion on where businesses will locate or depart, they no doubt enter into that decision process.
OK, so I promised no more tax comparison this week. But if you wondered about differences in spirit excise taxes per state, and yes, you guessed it, a Tax Foundation Report, click here.
Talk about a MAJOR difference from lowest to highest, compare the Colorado’s $2.28 tax per gallon of spirits (Colorado ranks 46th) to
Washington State’s tax of $35.22 per gallon (which ranks number 1—but that may not necessarily be a good rank to hold).
Enjoy your weekend now loaded with all this important tax information.