Nation’s Top 10 Places with Heaviest Income Tax Burdens

Paying too much income taxes?

When it comes to income taxes, not just how much you earn matters, your location also plays a role, a big role. So instead of trying to squeeze a few bucks from various deductions, you may want to consider relocation if you are living in one of the cities in the nation that imposes heavy personal income taxes.

According to a CNNMoney article, people living in Manhattan, New York, pay an average of $25,875 federal personal income taxes, or about 20% of their AGI, the highest in the nation, while residents of Starr County in Texas enjoy a refund of $867, which equals to a negative 4.13% tax burden, from Uncle Sam every year. The article lists top 1o counties in the nation that have the heaviest income tax burdens as:

Rank County State Avg. Tax
Taxes as
% of AGI
1 New York (Manhattan) NY $25,875 20.0
2 Fairfield CT $23,479 19.4
3 Teton WY $27,015 18.3
4 Westchester NY $19,411 17.8
5 Pitkin CO $24,001 17.6
6 Collier FL $16,966 17.4
7 Union SD $14,006 17.2
8 Marin CA $18,365 16.8
9 Somerset NJ $16,502 16.8
10 Morris NJ $15,296 16.3

Factors that contribute to high income taxes include, but not limited to:

  • High personal income: of course, you pay more when you earn more;
  • Income from investments: however, if your investment incomes are from long-term capital gains or dividends, the impact is so bad as these distributions are taxed at a lower rate;
  • State and local income taxes: since these taxes can be deducted from your federal income taxes, you can get a bigger deduction if you are living in a high income taxes state.

The article also provides a list of top 10 metropolitan areas with the highest income taxes percentage compared with AGI:

Rank Cities State Avg. Tax
Taxes as
% of AGI
1 Stamford – Norwalk CT $41,496 22.0
2 Naples FL $16,849 17.4
3 San Francisco CA $14,279 16.0
4 West Palm Beach – Boca Raton FL $11,014 15.1
5 Danbury CT $12,324 15.0
6 Boston MA $10,698 14.7
7 New York NY $9,602 14.7
8 Bergen – Passaic NJ $10,339 14.4
9 Newark NJ $10,146 14.4
10 San Jose CA $11,726 14.2

How’s your income taxes compared with others in the nation? I am living in a county that on the top 10 list, which also has the highest property taxes in the nation :(.

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