Besides federal income taxes, various state and local taxes can be a prime consideration, too.
A new study by the Institute on Taxation & Economic Policy (ITEP) added up the state and local income taxes, property taxes, sales taxes and excise taxes for residents. It found that California is the most expensive state for wage-earners in the top 1%. This group in California spends 8.8% of their household income on state and local taxes (based on figures before a tax increase that took effect in 2012).
Rounding out the top five states in the ITEP study are Hawaii and Vermont at 8% of high wage-earners’ income, and New Jersey and Oregon at 7%.
- Small Business Tax Deduction Strategies No matches