Which states have the highest tax rates?
Millions of people will be spending today frantically preparing to meet tonight’s 11:59 pm deadline. Indeed, those in the throes of filing can delight in the IRS’s promotion of “improved customer service”, as the ~100m who’ve already sent returns can enjoy less procedural promos from the likes of Krispy Kreme.
But if lower taxes are a priority for you: where should you move?
Anchorage, Alaska wouldn't be a bad choice — Alaskans enjoy the lowest tax burden, at just a 4.9% income share, while citizens of Florida (6%) and Texas (7.6%) savor the spoils of no state income tax. New York, on the other hand, has the highest tax burden of any state, with a more than 12% share of average personal income being paid in property, individual income, and sales and excise taxes.
And it seems these low taxes are working to attract new residents. Sun Belt hotspots have seen swathes of high-earning households (>$200k per annum) up sticks from traditional financial centers to break lower-tariff ground: according to SmartAsset, a net influx of more than 27k high-earners migrated to Florida between 2020-21, while New York and California saw net outflows of 20k and 27k higher-tax residents, respectively.
Anchorage, Alaska wouldn't be a bad choice — Alaskans enjoy the lowest tax burden, at just a 4.9% income share, while citizens of Florida (6%) and Texas (7.6%) savor the spoils of no state income tax. New York, on the other hand, has the highest tax burden of any state, with a more than 12% share of average personal income being paid in property, individual income, and sales and excise taxes.
And it seems these low taxes are working to attract new residents. Sun Belt hotspots have seen swathes of high-earning households (>$200k per annum) up sticks from traditional financial centers to break lower-tariff ground: according to SmartAsset, a net influx of more than 27k high-earners migrated to Florida between 2020-21, while New York and California saw net outflows of 20k and 27k higher-tax residents, respectively.
