States with the lowest tax burdens saw population growth last year

Wyoming leads the way

Per The Washington Examiner:

All but one of the 10 most tax-friendly states experienced gains in population from 2019 to 2020, according to a new analysis from MoneyGeek, a personal finance technology company located in San Francisco.

Conversely, seven of the 10 least tax-friendly states saw a decrease in population over the same time period.

To assign letter grades to assess state and local tax burdens, MoneyGeek used a hypothetical profile of a married couple filing a joint tax return with an average gross income of $82,852 per year, a house valued at $346,000 and one dependent.

Wyoming, Nevada, Alaska, Florida and Tennessee all received a grade of A. Wyoming ranked first with an estimated overall tax burden of $3,279 paid for state and local income, sales and property taxes, or 4% of their total income.

Washington, North Dakota, Arizona, South Dakota and Delaware round out the top 10, and all received a grade of B.

Of the top 10, only Alaska saw a population decrease from 2019 to 2020, with a decrease of 0.3%. Arizona saw the largest gain at 1.8%.

Francine Lipman, a law professor specializing in taxes at UNLV, told MoneyGeek that people should consider the tax implications before deciding to move from one state to another.

“What if [someone] was going to move to New York and work in the city? Not only do you have state income taxes, but you also have city income taxes,” she said. “So you have to monetize that when you’re negotiating your move. You’ve got to negotiate a salary that compensates you for these additional costs.”

The 10 least tax-friendly states were Michigan, Nebraska, Vermont, Wisconsin, Iowa, New York, New Hampshire, New Jersey, Connecticut and Illinois.

New Jersey, Connecticut and Illinois all received Es – the lowest possible grade – with taxes topping 14%, 15% and nearly 17%, respectively, as a percentage of income. The other seven states received Ds. Illinois also has the highest tax burden at nearly $14,000.

Iowa, Wisconsin and Nebraska saw minor population increases of 0.1%, 0.1% and 0.3%, respectively. Among the states with failing grades, New York and Illinois saw the biggest population declines at 0.6% each.

MoneyGeek also looked at states with various types of tax advantages. New Hampshire, Oregon, Montana and Delaware, for example, do not collect sales tax. All four saw population growth, although New Hampshire still received a failing grade due to its overall high tax burden.

Seven states – Alaska, Wyoming, South Dakota, Florida, Texas, Nevada and Washington – do not tax personal income.

The states with the lowest effective property tax rates are Hawaii, Alabama, Colorado, Louisiana and Delaware.

1 year, 2 months ago

Governors in Iowa, North Dakota and Alabama join GOP colleagues in banning TikTok for state employees

The Republican governors of three more states have joined the growing number of GOP governors who are banning TikTok among state government employees amid security concerns about the Chinese-owned social media platform

1 year, 2 months ago

Arizona Governor Creates Shipping Container Border Wall

Arizona Governor Doug Ducey has had hundreds of double-stacked shipping containers topped with razor wire placed on the state’s border with Mexico

1 year, 2 months ago

Stacey Abrams’s Georgia Nonprofit Could Face Criminal Investigations for Unlicensed Fundraising

New Georgia Project's charity license has lapsed in at least nine states

1 year, 2 months ago

Biden says ‘more important things’ than border visit, despite 59 trips to Delaware, 8 stops for ice cream

Biden has yet to visit southern border despite historic crisis under his watch

1 year, 2 months ago

Governor Kristi Noem delivers annual Budget Address, says the state can afford grocery tax cut

In about thirty minutes of remarks, Governor Kristi Noem laid out her administration would like to see nearly $2.2 billion spent over the course of the next fiscal year and a half.

1 year, 2 months ago

‘A Clear And Present Danger To Its Users:’ South Carolina Gov. Bans State Employees From Using TikTok Amid National Security Concerns

South Carolina became the second state in the union Monday to permanently ban state employees’ electronic devices from using TikTok amid federal officials sounding the alarm that the Chinese-based social media app threatens national security