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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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