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:
% of AGI
|1||New York (Manhattan)||NY||$25,875||20.0|
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:
% of AGI
|1||Stamford – Norwalk||CT||$41,496||22.0|
|4||West Palm Beach – Boca Raton||FL||$11,014||15.1|
|8||Bergen – Passaic||NJ||$10,339||14.4|
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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