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Connecticut ranks as fifth overall when it comes to tax burden, with an overall rate of nearly 11 percent, according to WalletHub, a personal finance website.
It conducted an in-depth analysis of 2016's States with the Highest and Lowest Tax Burdens. In order to determine which states tax their residents most aggressively, WalletHub’s analysts compared the tax burdens of the 50 states by measuring property taxes, individual income taxes, and state and gross receipts taxes — the three components of state tax burden — as percentages of the total personal income in each state.
Here is the tax burden in Connecticut:
- 5th – Overall Tax Burden (10.91 percent)
- 7th – Property Tax Burden (4.39 percent)
- 5th – Individual Income Tax Burden (3.49 percent)
- 40th – Total Sales & Gross Receipts Tax Burden (3.03 percent)
Residents of Fairfield County may take some small comfort in knowing that the state with the highest overall tax burden is neighboring New York, at a whopping 13.12 percent. Hawaii, Maine and Vermont round out the Top 5 states.
Nearby New Jersey comes in at No 7, at 10.38 percent, with neighboring Rhode Island right behind at No. 8 at 10.36 percent. Massachusetts fares even better, despite its reputation for high taxes, coming in at No. 18 at 9.1 percent.
Want a lower tax burden? The states with the lowest rates, all under 7 percent, are Oklahoma, South Dakota, New Hampshire, Tennessee, and Delaware, with Alaska coming in at No. 50 with a rate of 5.18 percent.
For the full report, click here.
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