The rise of remote work has led many people to reconsider where they live. While lifestyle and housing costs are typically the most important factors to weigh when deciding where to live, understanding the tax burden and other costs of living are important to evaluating a budget.
The analysis, by HireAHelper, a site that provides reviews and booking services for local moving companies nationwide, was based on data from the Census Bureau and the Bureau of Economic Analysis. It found D.C. residents pay 11.63 percent of their income, or an average of $9,435, in combined taxes each year.
Tax burdens range from a low of 5.04 percent in Alaska to a high of 12.8 percent in New York. The second highest tax burden falls on Hawaii residents, who pay 12.23 percent of their income on taxes.
Maryland ranks 12th for its tax burden, with residents paying 9.43 percent of their income on state and local taxes. Virginia ranks 36th, with residents paying 7.86 percent of their income on these taxes.
Nationally, consumers pay an average of 8.88 percent of their income in state and local taxes. Broken down by category, 3.43 percent of those taxes are sales taxes, 3.07 percent are property taxes, and 2.39 percent state income taxes.
In D.C., property taxes average 4.6 percent of income, while income taxes are 3.63 percent and sales taxes average 3.4 percent.
Regionally, Northeastern states tend to tax residents the most, while Southern states tax residents least. The three states with the lowest state and local taxes are Alaska at 5.04 percent, Tennessee at 5.70 percent and Wyoming at 6.11 percent. For the full report, click here.
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