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The personal finance website WalletHub has released “The Best
States to be Rich or Poor from a Tax Perspective.” Researchers
identified the best states where the residents spend the most
and least on sales and excise taxes, property taxes and income
taxes.
Researcher Cassandra Happe said Illinois is the worst state in
the country to reside for low-income earners.
“They came in 40th overall for the sales and excise taxes for
low-income earners, 45th overall for the property taxes, and
47th for the income taxes, so across the board, not a great
scenario,” Happe said.
The total tax burden as a percentage of income in Illinois for
low-income earners is nearly 14%. That is compared to less than
7% in Alaska.
It's not much better for middle or high-income earners. Illinois
ranked 49th in the country for middle-income earners and 45th in
the nation for high-income earners.
According to WalletHub, the top three states with the least tax
burden for high-income earners were Alaska, New Hampshire and
North Dakota.
The top three states for middle-income earners were Alaska, New
Hampshire and Delaware.
The top three states for low-income wage earners were Alaska,
Montana and Vermont.
“The wealthy and less fortunate are both subject to taxes, but
unfortunately people who are not as well off can end up getting
hit harder due to the regressive nature of many taxes,” said
Happe.
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