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MoneyGeek analyzed data from the U.S. Census Bureau, the Tax
Foundation and the U.S. Bureau of Labor Statistics to comprise
letter grades for states.
To find the most tax-friendly states, MoneyGeek estimated the
state taxes paid by a typical middle-class family. They were
defined as a married couple with one child making the median
national income ($87,432) and owning a home valued at the
national median ($374,665).
Illinois received an “F” grade, earning the status of the least
tax-friendly state in the country.
The report shows families in Illinois pay on average $14,778 a
year in taxes, while in Wyoming, the most tax-friendly state,
residents pay about $3,438 a year.
MoneyGeek data analyst Melody Kasulis said that may explain why
people are fleeing the Land of Lincoln.
“There was above average population growth in tax-friendly
states and below average population growth in the least
tax-friendly states,” Kasulis told The Center Square. “That's a
general take away from the study, but that being said, Illinois
being at the bottom did have a pretty stark population decline.”
The analysis noted that only five states received “A” grades for
tax-friendliness. They were Wyoming, Nevada, Tennessee, Alaska
and Florida. States that received the top grade all have no
state income tax. On average, taxes in the most tax-friendly
states comprised 6% of the typical household’s income.
Conversely, taxes made up 14% of a typical family’s income in
the 10 states with the highest tax burdens. In Illinois, taxes
made up 17% of household income.
The other states to receive failing grades were Connecticut, New
Jersey and New Hampshire.
Kevin Bessler reports on statewide issues in
Illinois for the Center Square. He has over 30 years of
experience in radio news reporting throughout the Midwest.
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