Comments on: Compare Sales, Income, and Property Taxes By State – US Map 2011 http://www.mymoneyblog.com/state-tax-rate-maps-how-does-your-state-compare.html Personal Finance and Investing Blog Sun, 12 Feb 2012 01:43:13 +0000 hourly 1 By: Jonathan http://www.mymoneyblog.com/state-tax-rate-maps-how-does-your-state-compare.html#comment-182206 Jonathan Sat, 26 Nov 2011 09:08:31 +0000 http://www.mymoneyblog.com/?p=7076#comment-182206 Nope, no sales tax in Oregon! Nope, no sales tax in Oregon!

]]> By: John Q. http://www.mymoneyblog.com/state-tax-rate-maps-how-does-your-state-compare.html#comment-182203 John Q. Sat, 26 Nov 2011 03:40:24 +0000 http://www.mymoneyblog.com/?p=7076#comment-182203 There's no sales tax in Oregon? There’s no sales tax in Oregon?

]]> By: Ann http://www.mymoneyblog.com/state-tax-rate-maps-how-does-your-state-compare.html#comment-182140 Ann Tue, 22 Nov 2011 17:55:34 +0000 http://www.mymoneyblog.com/?p=7076#comment-182140 These median property taxes mainly reflect the fact that property is much more expensive in urbanized/suburban counties than rural areas, so it's not very informative. What you need is also a map showing the % rate, not just the median amount, which gives you no idea whether comparable urbanized areas are taxed at similar rates or not. California has a relatively low property tax rate, but since land values are high, this is not reflected in the "median" property tax. These median property taxes mainly reflect the fact that property is much more expensive in urbanized/suburban counties than rural areas, so it’s not very informative. What you need is also a map showing the % rate, not just the median amount, which gives you no idea whether comparable urbanized areas are taxed at similar rates or not. California has a relatively low property tax rate, but since land values are high, this is not reflected in the “median” property tax.

]]> By: jim http://www.mymoneyblog.com/state-tax-rate-maps-how-does-your-state-compare.html#comment-182022 jim Wed, 16 Nov 2011 21:07:58 +0000 http://www.mymoneyblog.com/?p=7076#comment-182022 "Reed Hastings can write a check to the Treasury anytime he wants. The fact that he hasn’t, says volumes…." Writing a check to the government is not a prerequisite for voicing an opinion on how our taxes ought to work. Not donating money to government doesn't disqualify someones opinion that some taxes should be higher. “Reed Hastings can write a check to the Treasury anytime he wants. The fact that he hasn’t, says volumes….”

Writing a check to the government is not a prerequisite for voicing an opinion on how our taxes ought to work. Not donating money to government doesn’t disqualify someones opinion that some taxes should be higher.

]]> By: Ron http://www.mymoneyblog.com/state-tax-rate-maps-how-does-your-state-compare.html#comment-182015 Ron Wed, 16 Nov 2011 15:26:29 +0000 http://www.mymoneyblog.com/?p=7076#comment-182015 @ Heather: the second SFGate story you list is from 2003, but he study referenced in it has since been updated (2009) and is available at: http://www.itepnet.org/whopays.htm @ Heather: the second SFGate story you list is from 2003, but he study referenced in it has since been updated (2009) and is available at:

http://www.itepnet.org/whopays.htm

]]> By: Heather http://www.mymoneyblog.com/state-tax-rate-maps-how-does-your-state-compare.html#comment-182002 Heather Wed, 16 Nov 2011 04:34:47 +0000 http://www.mymoneyblog.com/?p=7076#comment-182002 One thing these maps do not factor in is fees: this is another way for states to take in revenue. Fees are things like vehicle registration, permits, park use fees, and university tuition I think. California lost 4-6 billion each year when Governor Schwarzenegger lowered the vehicle license fee. If you don't account for fees, California's tax is 9th highest in the nation (2000), if you do take into account fees then California ranks middle of the states, which is kind of interesting if you consider that we probably have to pay quite a bit more for teachers, firefighters, etc. because wages (and housing) are higher here. http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2003/08/31/MN101774.DTL The study mentioned in this article breaks down state and local taxes (but not fees, I think) by income brackets, which is kind of cool. But it's fairly dated. http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2003/01/14/BU214563.DTL&type=business One thing these maps do not factor in is fees: this is another way for states to take in revenue. Fees are things like vehicle registration, permits, park use fees, and university tuition I think. California lost 4-6 billion each year when Governor Schwarzenegger lowered the vehicle license fee. If you don’t account for fees, California’s tax is 9th highest in the nation (2000), if you do take into account fees then California ranks middle of the states, which is kind of interesting if you consider that we probably have to pay quite a bit more for teachers, firefighters, etc. because wages (and housing) are higher here.

http://www.sfgate.com/cgi-bin/.....101774.DTL

The study mentioned in this article breaks down state and local taxes (but not fees, I think) by income brackets, which is kind of cool. But it’s fairly dated.

http://www.sfgate.com/cgi-bin/.....e=business

]]> By: ParatrooperJJ http://www.mymoneyblog.com/state-tax-rate-maps-how-does-your-state-compare.html#comment-181991 ParatrooperJJ Tue, 15 Nov 2011 19:22:35 +0000 http://www.mymoneyblog.com/?p=7076#comment-181991 @Reader - Reed Hastings can write a check to the Treasury anytime he wants. The fact that he hasn't, says volumes.... @Reader – Reed Hastings can write a check to the Treasury anytime he wants. The fact that he hasn’t, says volumes….

]]> By: Robert http://www.mymoneyblog.com/state-tax-rate-maps-how-does-your-state-compare.html#comment-181990 Robert Tue, 15 Nov 2011 18:44:15 +0000 http://www.mymoneyblog.com/?p=7076#comment-181990 The shading sucks - Oregon has no sales tax, but gets a shade that looks just like Wyoming with 5%, but the states that have no income tax get no shading. Yes, I'm in Oregon... The shading sucks – Oregon has no sales tax, but gets a shade that looks just like Wyoming with 5%, but the states that have no income tax get no shading.
Yes, I’m in Oregon…

]]> By: jim http://www.mymoneyblog.com/state-tax-rate-maps-how-does-your-state-compare.html#comment-181989 jim Tue, 15 Nov 2011 18:07:20 +0000 http://www.mymoneyblog.com/?p=7076#comment-181989 Alaska is the only state that pays you. Each permanent state resident gets a dividend each year. 2011 the rate is $1174. Most Alaskans do not pay sales tax. The state of Alaska does not have a sales tax. Individual municipalities can have sales taxes and many do. They seem to be publishing an average or median rate for local sales taxes. Half of Alaskas population lives in Anchorage which does not have a sales tax. Alaska is the only state that pays you. Each permanent state resident gets a dividend each year. 2011 the rate is $1174.

Most Alaskans do not pay sales tax. The state of Alaska does not have a sales tax. Individual municipalities can have sales taxes and many do. They seem to be publishing an average or median rate for local sales taxes. Half of Alaskas population lives in Anchorage which does not have a sales tax.

]]> By: GregK http://www.mymoneyblog.com/state-tax-rate-maps-how-does-your-state-compare.html#comment-181988 GregK Tue, 15 Nov 2011 17:31:04 +0000 http://www.mymoneyblog.com/?p=7076#comment-181988 @James "Someone making 500,000 will not usually pay 10x the property taxes of someone making 50k." Actually, that's probably close to true, at least on average. Someone making $500k will likely have a home worth about 10x the value of the home someone making $50k has. You're right that the curve is probably not linear across its entire range; it's probably a ln(x) curve at some point... but I have to think that across most of the "normal" range of incomes, it's pretty close to linear... @James

“Someone making 500,000 will not usually pay 10x the property taxes of someone making 50k.”

Actually, that’s probably close to true, at least on average. Someone making $500k will likely have a home worth about 10x the value of the home someone making $50k has. You’re right that the curve is probably not linear across its entire range; it’s probably a ln(x) curve at some point… but I have to think that across most of the “normal” range of incomes, it’s pretty close to linear…

]]> By: Stephen http://www.mymoneyblog.com/state-tax-rate-maps-how-does-your-state-compare.html#comment-181986 Stephen Tue, 15 Nov 2011 17:18:52 +0000 http://www.mymoneyblog.com/?p=7076#comment-181986 Looks like Southern Wyoming or Eastern South Dakota would be the places in the USA with the lowest overall tax burden. Looks like Southern Wyoming or Eastern South Dakota would be the places in the USA with the lowest overall tax burden.

]]> By: James http://www.mymoneyblog.com/state-tax-rate-maps-how-does-your-state-compare.html#comment-181985 James Tue, 15 Nov 2011 16:13:55 +0000 http://www.mymoneyblog.com/?p=7076#comment-181985 @GregK The reason why they picked an absolute value for Property Taxes is to try to show the average amount paid, because your property taxes will not scale linearly to your income (and are not at all based on your income). Someone making 500,000 will not usually pay 10x the property taxes of someone making 50k. Also, I don't know what the average home costs across the country, so it's easier (for me at least) to see the amount of property taxes paid instead of trying to do two calculations (Looking up average home price and multiplying by the average mills on the home). @GregK
The reason why they picked an absolute value for Property Taxes is to try to show the average amount paid, because your property taxes will not scale linearly to your income (and are not at all based on your income). Someone making 500,000 will not usually pay 10x the property taxes of someone making 50k.

Also, I don’t know what the average home costs across the country, so it’s easier (for me at least) to see the amount of property taxes paid instead of trying to do two calculations (Looking up average home price and multiplying by the average mills on the home).

]]> By: GregK http://www.mymoneyblog.com/state-tax-rate-maps-how-does-your-state-compare.html#comment-181979 GregK Tue, 15 Nov 2011 14:26:08 +0000 http://www.mymoneyblog.com/?p=7076#comment-181979 @Sandra - TN doesn't have income tax on wages, but they do tax investment income. That's why the shading is two-tone. Same is true of New Hampshire. The map is correct. Regarding property taxes, I'm a bit befuddled by the fact that they used average property taxes paid, and not tax rates, as they do for the other two taxes. Seems like apples to oranges to me... Sure property values vary, so that matters, but who cares? So do wages. Seems like they should have kept it consistent. @Sandra – TN doesn’t have income tax on wages, but they do tax investment income. That’s why the shading is two-tone. Same is true of New Hampshire. The map is correct.

Regarding property taxes, I’m a bit befuddled by the fact that they used average property taxes paid, and not tax rates, as they do for the other two taxes. Seems like apples to oranges to me… Sure property values vary, so that matters, but who cares? So do wages. Seems like they should have kept it consistent.

]]> By: chedv http://www.mymoneyblog.com/state-tax-rate-maps-how-does-your-state-compare.html#comment-181978 chedv Tue, 15 Nov 2011 13:48:02 +0000 http://www.mymoneyblog.com/?p=7076#comment-181978 Great reference Reader! If Reed Hastings was in charge, he could raise fees by 50% and see what happens. Oh wait, I think Netflix already tried that. Speaking of fees, I never did hear about an Occupy Netflix... Great reference Reader! If Reed Hastings was in charge, he could raise fees by 50% and see what happens. Oh wait, I think Netflix already tried that.

Speaking of fees, I never did hear about an Occupy Netflix…

]]> By: Type of State Income Taxes [Tax Foundation] — Visualizing Economics http://www.mymoneyblog.com/state-tax-rate-maps-how-does-your-state-compare.html#comment-159112 Type of State Income Taxes [Tax Foundation] — Visualizing Economics Thu, 20 May 2010 21:02:43 +0000 http://www.mymoneyblog.com/?p=7076#comment-159112 [...] in Other From Tax Foundation found via My Money Blog [...] [...] in Other From Tax Foundation found via My Money Blog [...]

]]> By: Maury http://www.mymoneyblog.com/state-tax-rate-maps-how-does-your-state-compare.html#comment-147502 Maury Thu, 25 Mar 2010 13:43:19 +0000 http://www.mymoneyblog.com/?p=7076#comment-147502 Texas rocks... The only area we are paying a bit more is property taxes and as someone else pointed out, house prices are cheap in Texas. I have to pat myself on the back for ditching the Midwest and moving to Austin. I wonder how many thousands I have saved? On the flip side, I'd probably be broke if I lived in California... (Or at least underwater...) Texas rocks… The only area we are paying a bit more is property taxes and as someone else pointed out, house prices are cheap in Texas.

I have to pat myself on the back for ditching the Midwest and moving to Austin. I wonder how many thousands I have saved? On the flip side, I’d probably be broke if I lived in California… (Or at least underwater…)

]]> By: Bill http://www.mymoneyblog.com/state-tax-rate-maps-how-does-your-state-compare.html#comment-147445 Bill Wed, 24 Mar 2010 21:44:19 +0000 http://www.mymoneyblog.com/?p=7076#comment-147445 Yay New Jersey!!! oh, wait.... Yay New Jersey!!! oh, wait….

]]> By: Pete http://www.mymoneyblog.com/state-tax-rate-maps-how-does-your-state-compare.html#comment-147434 Pete Wed, 24 Mar 2010 20:44:50 +0000 http://www.mymoneyblog.com/?p=7076#comment-147434 Sandra: The Tennessee income tax does not apply to salaries and wages, but most income from stocks, bonds and notes receivable is taxable at a flat rate of 6 percent. Thats why it is yellow and not white on the map. MO has a 6% income tax but is on all wages. Sandra:

The Tennessee income tax does not apply to salaries and wages, but most income from stocks, bonds and notes receivable is taxable at a flat rate of 6 percent.

Thats why it is yellow and not white on the map. MO has a 6% income tax but is on all wages.

]]> By: Jim http://www.mymoneyblog.com/state-tax-rate-maps-how-does-your-state-compare.html#comment-147380 Jim Wed, 24 Mar 2010 01:37:09 +0000 http://www.mymoneyblog.com/?p=7076#comment-147380 The figures are state level averages. So the numbers given aren't exactly what you pay or what is charged in a specific county or city for each state. There are a lot of reasons the taxes are higher or lower for given situations. e.g. I pay around 0.2% more on my property tax but thats due to local school bonds. They cite 8.7% tax for sales tax in WA but I know in Seattle I paid 10% cause the city/county add more. THe income tax rates are the TOP rates that only people in the higher income brackets pay, average people pay lower rates. Property tax may be based on lower property value than fair market. My state is taxing us on about 60-80% of our market value. etc. The figures are state level averages. So the numbers given aren’t exactly what you pay or what is charged in a specific county or city for each state. There are a lot of reasons the taxes are higher or lower for given situations. e.g. I pay around 0.2% more on my property tax but thats due to local school bonds. They cite 8.7% tax for sales tax in WA but I know in Seattle I paid 10% cause the city/county add more. THe income tax rates are the TOP rates that only people in the higher income brackets pay, average people pay lower rates. Property tax may be based on lower property value than fair market. My state is taxing us on about 60-80% of our market value. etc.

]]> By: Ed http://www.mymoneyblog.com/state-tax-rate-maps-how-does-your-state-compare.html#comment-147375 Ed Wed, 24 Mar 2010 00:22:23 +0000 http://www.mymoneyblog.com/?p=7076#comment-147375 Ken, You sre Sooooo right! Ed...from Vancouver,WA P.S. Note, though, that there is always a little math to do with respect to time and gas money when I decide if I should drive 10 miles to save a couple of bucks. :-) Ken,
You sre Sooooo right!
Ed…from Vancouver,WA

P.S.
Note, though, that there is always a little math to do with respect to time and gas money when I decide if I should drive 10 miles to save a couple of bucks. :-)

]]> By: Chris http://www.mymoneyblog.com/state-tax-rate-maps-how-does-your-state-compare.html#comment-147348 Chris Tue, 23 Mar 2010 16:27:12 +0000 http://www.mymoneyblog.com/?p=7076#comment-147348 Another misleading item. The sales tax maps is treating states that have a sales tax and a gross receipts tax as the same thing, but there is a huge difference. Another misleading item. The sales tax maps is treating states that have a sales tax and a gross receipts tax as the same thing, but there is a huge difference.

]]> By: Sandra http://www.mymoneyblog.com/state-tax-rate-maps-how-does-your-state-compare.html#comment-147346 Sandra Tue, 23 Mar 2010 16:11:53 +0000 http://www.mymoneyblog.com/?p=7076#comment-147346 Sorry, I didn't read the fine print. :( Sorry, I didn’t read the fine print. :(

]]> By: Sandra http://www.mymoneyblog.com/state-tax-rate-maps-how-does-your-state-compare.html#comment-147345 Sandra Tue, 23 Mar 2010 16:08:54 +0000 http://www.mymoneyblog.com/?p=7076#comment-147345 Tennessee does not have a state income tax, so the map is incorrect. Tennessee does not have a state income tax, so the map is incorrect.

]]> By: Allie http://www.mymoneyblog.com/state-tax-rate-maps-how-does-your-state-compare.html#comment-147344 Allie Tue, 23 Mar 2010 15:58:30 +0000 http://www.mymoneyblog.com/?p=7076#comment-147344 I live in Michigan. Property taxes are only high for those that have purchased a home recently. When you purchase a home you pay taxes on what the house was purchased for and pay more if it is not your main home. If you purchase vacant land, or a vacation home you pay 18 mills more. But on your homesteaded home (the taxable value that you pay property taxes) on will not go up over the rate of inflation or 5% whichever is less. The taxable value can go down. The property tax law in Michigan does hurt those buying a home they can afford now and then getting a nicer or bigger home as their incomes go up or as their families grow. Only helps those that have huge incomes and can purchase a home that they will stay in. It does help seniors that will stay in their homes but it is bad for the young. But then again Michigan has the best in income taxes for retirees. A retiree pays no income tax on pension and IRA income up to about $90,000. Social Security is not included in this amount. You also pay no state tax on Social Security. In some instances you pay no tax on interest earned. It depends on total income. Also everyone gets a tax rebate on property taxes up to a certain amount if the property taxes are over a certain % of your income and your income does not exceed I think around 80 to 90 thousand. The problem is that there are so many cheaters with people that own more than one home and get around paying that extra 18 mills. There are many who have tried to circumvent these laws, by putting homes in girl friends names, children's names or their spouses names and use quit claim deeds not registered and other means to get around paying more in property taxes. I live in Michigan. Property taxes are only high for those that have purchased a home recently. When you purchase a home you pay taxes on what the house was purchased for and pay more if it is not your main home. If you purchase vacant land, or a vacation home you pay 18 mills more. But on your homesteaded home (the taxable value that you pay property taxes) on will not go up over the rate of inflation or 5% whichever is less. The taxable value can go down. The property tax law in Michigan does hurt those buying a home they can afford now and then getting a nicer or bigger home as their incomes go up or as their families grow. Only helps those that have huge incomes and can purchase a home that they will stay in. It does help seniors that will stay in their homes but it is bad for the young.

But then again Michigan has the best in income taxes for retirees. A retiree pays no income tax on pension and IRA income up to about $90,000. Social Security is not included in this amount. You also pay no state tax on Social Security. In some instances you pay no tax on interest earned. It depends on total income. Also everyone gets a tax rebate on property taxes up to a certain amount if the property taxes are over a certain % of your income and your income does not exceed I think around 80 to 90 thousand.

The problem is that there are so many cheaters with people that own more than one home and get around paying that extra 18 mills. There are many who have tried to circumvent these laws, by putting homes in girl friends names, children’s names or their spouses names and use quit claim deeds not registered and other means to get around paying more in property taxes.

]]> By: Nick http://www.mymoneyblog.com/state-tax-rate-maps-how-does-your-state-compare.html#comment-147339 Nick Tue, 23 Mar 2010 15:11:04 +0000 http://www.mymoneyblog.com/?p=7076#comment-147339 Ben: the California property tax rate is misleading due to Prop 13, which sets the property tax amount to the original sales price of the house with a maximum annual increase of 2%. In most counties, the property tax rate is at least 1%. So, someone who bought a house 40 years ago for $25,000 is only going to pay maybe $550 a year in property taxes. Their neighbor, who bought a similar house next door last year for $750,000 would pay at least $7,500. Ben: the California property tax rate is misleading due to Prop 13, which sets the property tax amount to the original sales price of the house with a maximum annual increase of 2%. In most counties, the property tax rate is at least 1%.

So, someone who bought a house 40 years ago for $25,000 is only going to pay maybe $550 a year in property taxes. Their neighbor, who bought a similar house next door last year for $750,000 would pay at least $7,500.

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