Ft Lauderdale Real Estate News 3/15/17
Freeze AND Pay More Taxes. Sounds Like A Great Idea.
WalletHub analyzed the effectiveness of federal and state tax rates. The average U.S. household pays more than $5,700 in federal taxes, according to the Bureau of Labor Statistics, but state tax burdens vary greatly. Taxpayers in states that are the most tax-expensive pay three times more in taxes than those that live in the cheapest tax states.
Florida, which has no state income tax, has one of the most effective – or lowest – tax rates in the country, according to WalletHub.
To figure out which states had the highest and lowest tax rates, WalletHub analyzed four types of taxation in each state and D.C. Data was compiled for real estate taxes, vehicle property taxes, income tax and sales and excise tax.
In the study, Florida also ranks 25th for real estate taxes, 28th for vehicle taxes and 8th for sales and excise taxes.
© 2017 South Florida Business Journal
Tax Rates by State
Below is the WalletHub ranking of Tax burdens by state, from lowest to highest.
3.) Effective Total Local and State Tax Rates on Median U.S. Household. Assumes “Median U.S. Household” has an annual income of $54,286 (mean third quintile U.S. income); owns a home valued at $178,600 (median U.S. home value); owns a car valued at $23,070 (the highest-selling car of 2016); and spends annually an amount equal to the spending of a household earning the median U.S. income.
4.) Annual State and Local Taxes on Median U.S Household.
Adjusted Overall Rank based on Cost of Living Index
Alaska, 5.64%, $3,060, 5
Delaware, 6.07%, $3,293, 1
Montana, 6.89%, $3,741, 3
Wyoming, 7.43%, $4,036, 2
Nevada, 7.66%, $4,157, 7
Tennessee, 7.97%, $4,3276, 4
Idaho, 8.48%, $4,604, 6
California, 8.79%, $4,774, 34
South Carolina, 8.84%, $4,800, 11
Florida, 8.94%, $4,851, 10