Every year, the average U.S. household pays more than $5,700 in federal income taxes, according to the Bureau of Labor Statistics.
But when you add in state and local taxes, the total tax burden for a median U.S. household in Connecticut comes to $7,262, for an effective rate of 13.48 percent, according to WalletHub. That's 25.89 percent higher than the national average of 10.71 percent! And that puts Connecticut at No. 48 on the list.
But when WalletHub accounts for the higher cost of living and higher values of homes and cars in Connecticut, the numbers for the Nutmeg State look even worse. Using that calculation, the total tax burden comes to $10,131, ranking Connecticut as 50th on the list.
With tax season in full gear, WalletHub’s analysts compared various tax rates among the 50 states and the District of Columbia in terms of the national average consumer’s income and spending habits.
In its overall rank, Connecticut landed at 46th on the list.
Connecticut also ranked as the following:
- 48th out of 51 (states plus the District of Columbia) for overall effective state and local tax rate
- 19th for income taxes
- 46th for real estate taxes
- 48th for vehicle property taxes
- 18th for sales and excise taxes
Alaska has the lowest state and local tax rates in the country at 5.69 percent with the median household paying $3,066. Illinois comes in at 51st, with a rate of 14.54 percent and the median household paying $7,836.
Among Connecticut's neighbors, Rhode Island tax comes in at 47th, New York is 46th, New Jersey is 42nd and Massachusetts hits 31st.
Connecticut taxpayers also get slammed with other high rates. The Nutmeg State ranks 47th for highest gas taxes and 48th for the excise tax on cigarettes. But residents do get one break; Connecticut is one of 35 states that does not tax food.
Taxpayers in the most expensive states, pay three times more than those in the cheapest states to meet their civic burden, according to WalletHub.
Click here to read the full report.
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