"The gap between high-tax and low-tax states has unfortunately never been wider. While residents in states such as Alaska and Tennessee pay well under $5,000 per person in combined state and local taxes, those in more costly states can pay as much as two or three times as much. For anyone trying to make decisions about where to live, work, and ultimately, retire, this difference compounds into real money over time."
"States end up in the $8,000 plus club for a variety of different reasons, including but not limited to high income taxes, while others have crushing property taxes that burden homeowners year after year, regardless of income. A few use broad consumption taxes that touch nearly every transaction, and other states, like North Dakota, appear on the list due to severance taxes on natural resources that are largely exported to out-of-state consumers."
Per-capita state and local tax collections average $7,109 nationally, but the range across states is large. Most states cluster near the national average, while at least 10 states collect $8,000 or more per person, at least 13% above average. High collections arise from different sources: steep income taxes, heavy property taxes, broad consumption taxes, and severance taxes on exported natural resources. The mix of tax types affects residents differently: retirees on fixed incomes feel property-tax burdens, wage earners face income-tax impacts, and investors or wealth builders encounter distinct challenges depending on state tax structures.
Read at 24/7 Wall St.
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