The United States tax system is an outdated, complex and ever-changing nightmare that can be difficult to understand and navigate. The good thing is, that the taxes collected are used to fund needed public services in education, healthcare, defense, and more (think of the roads you drive on everyday.) One state well-known for its high taxes is New York. With some of the highest income tax rates in the country, NY has seen a surge of people picking up and leaving the state all together. Many wealthy people are fed up with the graduated income tax system, which means that lower income earners pay a lower rate and higher income earners pay a higher rate. Residents earning over $25 million are taxed at the highest rate of 10.9%. Another double whammy for New Yorkers is the high sales tax rate. These taxes are applied to goods and services sold to consumers. This map from the team at madisontrust.com shows just how high New York ranks to other states in the US for taxes. Property taxes and excise taxes also hit New Yorkers with more pain in the wallet. Excise taxes are put on cigarettes, gasoline, cell phones and more. Maybe one of the only good tax facts about NY is that their alcohol taxes are lower than many other states. Other states on this map that have the highest tax rates in the US are, New Jersey, Illinois, California, Washington, Vermont, Minnesota, Connecticut, Iowa, and Rhode Island. California also has the highest state sales tax at a rate of 7.25%. Indiana, Mississippi, Rhode Island, and Tennessee are also states with high sales tax rates. There are a total of seven states that have no state income tax at all. They are Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming. Where does your state fall on the map?
