How ‘Tax-Friendly’ Is FL Compared to Other States?
Are you a homeowner who's looking to sell your house in Florida? If so, you're probably wondering how the tax situation in Florida compares to other states. In this blog post, we'll take a look at the taxation of real estate in Florida and compare it to other states. We'll also provide some tips for sellers who are out of state. So, if you're curious about taxes in Florida, keep reading!
A MoneyGeek study including IRS, state, property and sales taxes listed Fla. as the No. 4 least-expensive tax state. Total tax costs are about 5.6% of total income.
TAMPA, Fla. – It’s tax filing season and depending on where you live in the U.S., you could be forking over a very different-sized chunk of your income.
An analysis by MoneyGeek ranked every state by how “tax-friendly” it is. The analysts didn’t just look at income tax – they also factored in property taxes, plus state and local sales taxes.
To determine where people pay the highest tax burden, MoneyGeek looked at a hypothetical average family: a married couple with one kid, earning the median national income of $82,852, owning a $349,400 home. The study breaks down how much this fictional family would pay in taxes in every state.
The states with the lowest tax burden, according to the analysis, were:
- Wyoming (estimated taxes: 4% of income or $3,279)
- Nevada (estimated taxes: 4.7% of income or $3,879)
- Alaska (estimated taxes: 5.4% of income or $4,507)
- Florida (estimated taxes: 5.6% of income or $4,632)
- Tennessee (estimated taxes: 6.5% of income or $5,377)
- Washington (estimated taxes: 6.5% of income or $5,414)
- North Dakota (estimated taxes: 6.7% of income or $5,556)
- Arizona (estimated taxes: 6.8% of income or $5,665)
- South Dakota (estimated taxes: 7.2% of income or $5,938)
- Delaware (estimated taxes: 7.3% of income or $6,074)
The states with the highest tax burden were:
- Illinois (estimated taxes: 16.8% of income or $13,894)
- Connecticut (estimated taxes: 15.1% of income or $12,545)
- New Jersey (estimated taxes: 14.3% of income or $11,872)
- New Hampshire (estimated taxes: 14.1% of income or $11,694)
- New York (estimated taxes: 13.9% of income or $11,495)
- Iowa (estimated taxes: 13.8% of income or $11,398)
- Wisconsin (estimated taxes: 13.2% of income or $10,976)
- Vermont (estimated taxes: 12.6% of income or $10,453)
- Nebraska (estimated taxes: 12.6% of income or $10,446)
- Michigan (estimated taxes: 12.4% of income or $10,239)
Based on its analysis, MoneyGeek also gave every state a letter grade on its “tax friendliness.” The states with A grades have the lowest tax burden on an “average” family, while the states with D or E grades have the highest tax burden.
MoneyGeek’s estimates only hold true for that hypothetical family,earning about $82,000 a year with a $349,000 house. A family who just bought a $1 million house in California would probably be paying a lot more in taxes, while a single person earning $40,000 in Texas would be paying less.
Florida is the No. 4 least-expensive tax state in the nation, with total tax costs of about 5.6% of total income. This puts Miami and South Florida among some of the most tax-friendly places to live in the country. If you’re looking for a place that offers a reasonable cost of living while still providing plenty of amenities and opportunities, look no further than our beautiful Sunshine State! Are there any other benefits you can think of to living here in Miami or South Florida? Let me know in the comments below – I’d love to hear from you!
Original Article: CLICK
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