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How tax-friendly is your state?
Local and state taxes can have a big impact on your take-home pay.

PLUS:
•  Behind the rankings
•  How the big cities rank
•  More tax rankings: Income, sales, property
NEW YORK (CNN/Money) -- There are countless reasons why you choose to live where you live. The climate, the schools and the job opportunities are just a few. But state and local taxes can make a big difference.

The Tax Foundation, a policy research group, estimated the average taxpayer's total state and local tax burden for 2005 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. States below are ranked from least to most tax friendly. (Read more about this table below.)

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State-Local Tax Burdens, Calendar Year 2005
Rank State State/Local taxes as
% of per capita income
  U.S. average 10.10%
46 Alabama 8.70%
50 Alaska 6.40%
21 Arizona 10.20%
11 Arkansas 10.50%
20 California 10.30%
37 Colorado 9.50%
12 Connecticut 10.50%
48 Delaware 8.00%
44 Florida 9.20%
31 Georgia 9.80%
3 Hawaii 11.50%
27 Idaho 10.00%
30 Illinois 9.80%
18 Indiana 10.30%
25 Iowa 10.00%
15 Kansas 10.40%
19 Kentucky 10.30%
16 Louisiana 10.40%
1 Maine 13.00%
17 Maryland 10.30%
32 Massachusetts 9.80%
22 Michigan 10.10%
10 Minnesota 10.70%
26 Mississippi 10.00%
41 Missouri 9.40%
39 Montana 9.50%
8 Nebraska 10.90%
38 Nevada 9.50%
49 New Hampshire 7.40%
14 New Jersey 10.40%
29 New Mexico 9.90%
2 New York 12.00%
28 North Carolina 10.00%
42 North Dakota 9.40%
7 Ohio 11.00%
40 Oklahoma 9.40%
36 Oregon 9.60%
35 Pennsylvania 9.70%
4 Rhode Island 11.40%
33 South Carolina 9.70%
45 South Dakota 8.80%
47 Tennessee 8.30%
43 Texas 9.30%
9 Utah 10.90%
6 Vermont 11.10%
34 Virginia 9.70%
24 Washington 10.00%
13 West Virginia 10.50%
5 Wisconsin 11.40%
23 Wyoming 10.10%
  District of Columbia 12.20%
Source: Tax Foundation, 2005
More tax info: Big city tax burdens »
Tax rankings: Income, sales, property »
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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 10.4 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. Top of page



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