Study: Connecticut ranks as 4th worst state for taxpayers
Connecticut is the fourth worst state to be a taxpayer in the country, according to WalletHub.com, a personal finance social network.
WalletHub has released its 2014 report on the “Best and Worst States to be a Taxpayer,” which compared all 50 states as well as the District of Columbia in terms of 10 different categories of taxation. The taxes compared included state and local income taxes, real estate taxes, alcohol taxes, and telecom taxes.
CT has second highest auto taxes
Connecticut had the second highest auto taxes in the country at 3.78%, and the third highest gas tax at 67.7 cents per gallon.
WalletHub ranked Connecticut as having the eighth highest real estate taxes at 1.83%. Most studies have found that Connecticut has the second or third highest property taxes in the nation, with New Jersey usually topping the list.
According to the study, a Connecticut resident pays $9,099 in combined state and local taxes each year. This does not include federal tax obligations, which would be an additional amount.
Wyoming ranked as the best
The WalletHub study found the less expensive state in the country for taxpayers is Wyoming, where the average resident pays $2,365 in non-federal taxes annually. That’s less than a quarter of the tax load for taxpayers in the most burdensome state, New York at $9,718.
In addition to New York, the other states that ranked worse than Connecticut were California and Nebraska.
Least expensive states
According to the WalletHub study the 10 best states for taxpayers (and average annual state and local taxes) are:
1. Wyoming ($2,365)
2. Alaska ($2,791)
3. Nevada ($3,370)
4. Florida ($3,648)
5. South Dakota ($3,766)
6. Washington state ($3,823)
7. Texas ($5,193)
8. Delaware ($5,195)
9. North Dakota ($5,588)
10. Colorado ($5,674)
Most expensive states
According to WalletHub study, the 10 worst states for taxpayers (and average annual state and local taxes) are:
41. Maryland ($8,571)
42. Maine ($8,622)
43. Iowa ($8,788)
44. New Jersey ($8,830)
45. Vermont ($8,838)
46. Wisconsin ($8,975)
47. Illinois ($9,006)
48. Connecticut ($9,099)
49. Nebraska ($9,450)
50. California ($9,509)
51. New York ($9,718)
State and local taxes used
The state and local taxes used in the study were:
— Real estate tax: This metric reflects the median real estate tax payment divided by the median house price.
— State income tax
— Local income tax (some counties and municipalities tax income in other parts of the country)
— Vehicle property tax: This metric only applies to Connecticut and Virginia.
— Vehicle sales tax: This metric includes vehicle sales tax and registration fee for a Toyota Camry L 4D Sedan, the country’s top selling car.
— Sales and use tax: This metric includes state and local data for 2012.
— Fuel tax
— Alcohol tax: This metric includes state-level data for beer, which accounts for more than 80% of all nationwide alcohol sales.
— Food tax
— Telecom tax