CNN/Money: How tax-friendly is your state?

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How tax-friendly is your state?


	PLUS:
	•	Tax-friendly places 2004
	•	CNN/Money Tax Center
	•	Best Places to Live
	•	Cost of living calculator

Local and state taxes can have a big impact on your take-home pay.

NEW YORK (CNN/Money) -- There are countless reasons why you choose to live where you live. The climate, the schools, the prospect for work and the proximity to a big metropolis are just a few.

But there are also state and local taxes to consider. They can make a big difference to your bottom line.

Below is a look at the average taxpayer's total state and local tax burden in each of the 50 states and the District of Columbia. That burden reflects what residents pay in state and local income taxes, property taxes, sales taxes, luxury taxes and fuel taxes, among others. It also accounts for the portion of business taxes that is passed along to the consumer by way of higher prices and lower wages. (Read more about this table below.)

State-Local Tax Burdens, Calendar Year 2004
State	State/Local taxes as % of per capita income
New York	12.9%
District of Columbia	12.8%
Maine	12.3%
Ohio	11.3%
Hawaii	11.3%
Rhode Island	11.1%
Wisconsin	11.1%
Utah	10.8%
West Virginia	10.6%
Connecticut	10.6%
Minnesota	10.5%
Idaho	10.4%
Vermont	10.4%
Michigan	10.2%
Nebraska	10.2%
New Jersey	10.1%
Indiana	10.1%
Kentucky	10.0%
Georgia	10.0%
National Average	10.0%
Mississippi	10.0%
Arizona	10.0%
Washington	9.9%
Kansas	9.9%
Louisiana	9.9%
Maryland	9.9%
Arkansas	9.8%
California	9.8%
Iowa	9.8%
Montana	9.8%
New Mexico	9.7%
Nevada	9.7%
North Carolina	9.7%
Illinois	9.7%
North Dakota	9.7%
Oregon	9.5%
Pennsylvania	9.4%
Massachusetts	9.4%
Virginia	9.3%
Missouri	9.3%
Oklahoma	9.2%
Colorado	9.1%
Alabama	9.1%
South Dakota	9.0%
South Carolina	9.0%
Wyoming	8.9%
Florida	8.8%
Texas	8.7%
Tennessee	8.5%
Delaware	8.2%
New Hampshire	7.5%
Alaska	6.3%
Source: Tax Foundation, 2004

The state/local tax burden reflects what a state and its local governments collect as a percentage of per capita income. So, for example, with a state/local tax burden of 10.1 percent, the state of New Jersey and its local governments get about a tenth of what its residents make per capita.

Of course, if you live in the Garden State your personal tax burden may be higher or lower. Much will depend, as it would in any state, on whether you own your home, where in the state you live, how much you make and the source of your income.

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