With tax season upon us, a study of state taxes finds that the citizens of deep-blue Illinois are hurt the worst by their state’s confiscatory tax rates.
A new study by MoneyGeek, a personal finance site, says that Illinois is the least “tax friendly” state in the union.
The study found that folks in Illinois fork over at least 13 percent of their yearly income to taxes, and they give the state an “F” grade on taxation.
Per WGN-TV:
Thirteen states in total earned either a D or F grade for tax burdens. For some of those states, like Oregon, high personal income tax rates are to blame. In Illinois, high property taxes and the effective tax rate played a major factor in their grade.
Illinois ranked 50th in the country, according to Rocket Mortgage’s property tax rankings, with the average annual property tax set at about $9,000. Their effective tax rate is even worse – it’s the second highest in the country at over 2%.
Effective tax rate is the average rate at which a person’s earned income, such as wages, and unearned income, such as stock dividends, are taxed.
So, what are the ten worst states for taxation with Illinois at the top?
Well, the list is probably unsurprising with the second worst being New Jersey.
From there, comes Iowa, Connecticut, New York, Oregon, Vermont, Michigan, New Hampshire, and Nebraska in the number ten slot.
The states that received an “A” rating are: Nevada, North Dakota, Wyoming, Tennessee, Washington, Florida, Alaska, Arizona, Missouri, and South Dakota.
So, where does your state rank? Check out the list HERE.
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