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WalletHub Report: California is the 2nd Worst State to be a Taxpayer!

Front Chart WalletHub Report: California is the 2nd Worst State to be a Taxpayer!WalletHub, the leading personal finance social network released its 2014 report on the Best & Worst States to be a Taxpayer. The report analyzed how the 50 states as well as the District of Columbia compare to the national median in terms of 10 different categories of taxation, ranging from state and local income taxes to alcohol and telecom taxes.  California at a glance:

1st – Highest State Income Tax (9.3%)
1st – Highest Gas Taxes (70.87 Cents/Gallon)
2nd – Highest Auto Sales Tax ($257.08)
9th – Highest State Sales Tax Rates (8.38%)

Economic mobility – that is, our ability to climb the proverbial ladder – has a strong correlation to where we live.  Children from Seattle whose families are in the 25th percentile in terms of income, for example, end up at roughly the same economic stature as kids from the median family in Atlanta.

Why?  State and local taxes.  At least that’s what a group of Harvard and Berkeley researchers collaborating on The Equality of Opportunity Project have to say.  They “found a significant correlation between both measures of mobility and local tax rates.”

WalletHub analyzed how state and local tax rates compare to the national median in the 50 states as well as the District of Columbia.  We 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.

Their findings as well as information about the methodology used to conduct this report can be found below.

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