Your wallet feeling a little lighter? Some would say a lotta little lighter. The folks at WalletHub examined state and local taxes to compare states to the national median. Where does Connecticut fit into the equation? Gulp — 49 out of 50 states based on cost of living index.
The WalletHub analysis shows Connecticut’s average annual state and local taxes at $9099, a 31 percentage difference from national average.
If you live in Wyoming, Alaska, Nevada, Florida and South Dakota – states with no personal income tax– you’re paying a fraction of what Connecticut residents pay. But, hey, we have to keep all those spend-happy Democratic politicians happy, right?
WalletHub compared eight different types of taxation in order to determine: 1) Which states have the highest and lowest tax rates; 2) how those rates compare to the national median; 3) which states offer the most value in terms of low taxation and high cost-of-living adjusted income levels.
The purpose of this report was to determine which states pay the highest and lowest tax rates, as well as to see how each state compares to the national median. We based this comparison on eight types of taxation (see below), using the composition of the median national tax burden to construct a weighting system. That is, we analyzed national spending patterns and tax return data to determine a baseline national tax profile to which we could compare each state.
You can find a breakdown of the types of taxes that we compared as well as the baseline national tax payment profile that we used below.
- Real Estate Tax (this metric reflects the median real estate tax payment divided by the median house price – both at the state level)
- Income Tax – State
- Income Tax – Local
- Vehicle Property Tax (this metric only applies to VA & Conn.; data for those states is at the county level)
- Vehicle Sales Tax (this metric includes vehicle sales tax and registration fee; we used the Toyota Camry L 4D Sedan – the country’s top selling car – as a proxy)
- Sales & Use Tax (this metric includes state & 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
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