Few things are more dreaded by US citizens than the infamous tax season. But even though taxes only seem to be getting higher each and every year, not all states in the US fare equally when it comes to this department. Each state and municipality is allowed to set its own fees and taxes, which accounts for why your tax return can look completely different depending on whether you’re living in Indiana or New York.
Earlier we have presented you a list of ten best states for taxes. Today, we would like to present you with a list we have compiled of the 10 worst states for taxes in 2014, based on a report released in October of 2013 by the Tax Foundation. The following states are ranked according to their income, sales, and property taxes.
New York, which emerged as 2014’s leading state can in no way be considered a tax haven. While its sales taxes, which rank at 4%, are by no means the highest in the country, New York more than makes up for it when it comes to individual income tax rates of 8.82%. Nonetheless, there is still hope for New Yorkers, as Governor Andrew Cuomo has announced that officials are actively attempting to find ways to transform and re-write the state’s tax code. Whether New York citizens will find any relief from this proposed new tax code remains to be seen.
New York’s close neighbor, New Jersey almost managed to beat the former for the title of worst tax state, thanks to the reduction in its tax relief program, which was initially aimed at helping homeowners pay their property taxes. Given this situation, New Jersey still remains the state with the highest property tax in the country in 2014.
California wraps up our top three, with one of the highest income tax rates in the country – 13.3%. In addition, its sales taxes, of 7.5% are not exactly on the low-side either.
Curious to see which are the other states that have made it on this year’s list of worst states for taxes? Let’s take a look at the countdown.