Unfortuantely it's in effective tax burdens.
Tax Burden By State
If all other things are equal, a state with a lower tax burden is a more attractive place to live in retirement than a state with a higher one. To get a true sense of which state is less expensive, you need to look at state and local tax burdens. Only then do the low tax states stand out.
Taxes that are included in the state and local tax burden are as follows:
*Property Taxes (represents an average; individual property taxes vary by locality)
*Sales and Gross Receipts (different taxing entities may add to the state sales tax)
*Selective Sales Taxes (alcoholic beverages, amusements, insurance premiums, motor fuels, parimutuels, public utilities, tobacco products, and others)
*Licenses (alcoholic beverages, amusements, corporation, hunting and fishing, motor vehicles, motor vehicle operators, public utilities, occupation and business)
*Other Taxes (individual income, corporation net income, death and gift, documentary and stock transfer, severance, and others)
The data presented on the linked page that follows shows states ranked by tax burden as a percentage of income. The taxes include those paid by individuals AND businesses to state and local governments. Business are included because they usually pass their tax costs on to consumers.
The top five states where the tax burden as a percent of income is the highest are: New York (12.9%), Maine (12.3%), Ohio (11.3%). Hawaii (11.3%), Rhode Island (11.1%). The United States average is 10.0%. The District of Columbia is 12.9%.
The five states with the lowest tax burden as a percent of income are: Alaska (6.3%) 50th, New Hampshire (7.5%) 49th, Delaware (8.2%) 48th, Tennessee (8.5%) 47th, and Texas (8.7%) 46th.
Effective State and Local Tax Burdens by
State and Rank for Calendar Year 2004
Each state's tax burden represents a combination of state and local tax burdens. The table that follows shows the effective state/local tax burdens as a percentage of income by state. Ranking by state can be found in column 1. Column 2 shows the tax burden as a percentage of income, column 3 is tax burden per capita, and column 4 shows income per capita.
New York - 1 <========= We're number one!!! We are the greatest!!! Please give us more taxes in 2005 so we stay on top.
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New Jersey - 15 <======= Hah, you guys in Joisey are only #15. You better get movin' if you want to catch up to NY!!!
The top ten lowest tax burden states.
Alabama - 41
South Dakota - 42
South Carolina - 43
Wyoming - 44
Florida - 45
Texas - 46
Tennessee - 47
Delaware - 48
New Hampshire - 49
Alaska - 50
www.retirementliving.com/RLtaxburdens.html