Average Tax Burden by State

[kretyen001]

This graphic appeared in my news feed. It reports the average state and local tax burden by state. State and local tax burden is defined as property tax + state income tax + sale / excise tax. The numbers for each of these components is at https://wallethub.com/edu/states-with-highest-lowest-tax-burden/20494 .

What is your tax burden?

I live in CA, in 2023 my totals were:

• Federal Income Tax -- 16.7% of AGI
• Property Tax -- 7.4% of AGI
• State Income Tax -- 5.9% of AGI
• Social Security -- 5.8% of AGI
• Medicare -- 1.4% of AGI
• Sales Tax -- ~1% of AGI
• Local Income Tax -- 0.8% of AGI

-----------------------------------------------------------

• Total State + Local Tax = 15% of AGI
• Total Fed + State + Local Tax = 32% of AGI
• Total Tax + SS/Med = 39% of AGI

https://preview.redd.it/gzjznzr7hbz...bp&s=c50875c42a17fd85416ea16bc5e7e80607a499d1

 

[heat578117]

@kretyen001 No way IL and IN are only 1% away from each other. IL is terrible when it comes to property taxes . Something is fishy with this chart.

 

[kendraann]

@heat578117 That stood out as odd to me to.

Illinois has higher income tax (4.95% vs 3.15%) but lower sales tax (6.25% vs 7%).

Property tax rates will vary, but a quick search says Illinois averages 2.08% vs Indiana's 0.84% which is significant.

Maybe more people rent in Illinois?

 

[samalematina]

@kendraann Sales tax in IL is also county dependent. I used to live in IL and the county added to sales tax. So the effective sales tax was 9%

 

[kendraann]

@samalematina Ouch

 

[ecotime47]

@samalematina Reminds me of home; grew up in Lake county.

 

[globalcitizenshipbyblood]

@heat578117 I’d also point out that Minnesota has a state income tax and SD does not, but MN does not sales tax groceries or clothing, SD sales tax applies to everything. The data set this is using isn’t nuanced enough

 

[sanggam]

@heat578117

Something is fishy with this chart.

I was clued in by the 10.4% burden in California. The property tax alone on a median price home in Los Angeles County will have a property tax bill that is 15.1% of the median household income.

 

[sdrago35]

@heat578117 Illinois is terrible when it comes to everything

 

[heat578117]

@sdrago35 That's not true honestly. But it definitely has major problems and your opinion is very widespread lol