Tags: Trump Tax Reform | state tax rates | 2016 election | trump | hillary clinton

Kiplinger's: Wyoming Top Best Tax List, Blue States Dominate Worst

Jackson Hole, Wyoming
Jackson Hole, Wyoming (F11photo/Dreamstime.com)

By    |   Tuesday, 01 October 2019 01:15 PM

Wyoming and six other states President Donald Trump won in the 2016 election are the most tax-friendly, while eight blue states — including four flipped by the Republican — are among the least tax-friendly, Kiplinger.com said in its annual rankings released Tuesday.

Kiplinger based its rankings on an analysis of data and state tax policies on income, property, sales, fuel, tobacco, alcohol, wireless services, and inheritances and gifts.

State tax-exemption rules were also examined.

"This year's tax-filing season was more nerve racking than most," said Rocky Mengle, Kiplinger's tax editor. "It was the first time Americans had to deal with all the federal tax-code changes made by the 2017 tax-reform law.

"The shake-up also makes it harder to tell how a person's state taxes line up with those of a similarly situated person in a neighboring state," he added.

Wyoming leads Kiplinger's most-tax-friendly list because of its flat 4.63% tax on federal income. The effective tax rate is 4.62% for single filers, 4.74% for joint filers.

The Centennial State has a 2.9% state tax, though localities can add as much as 8.30% — but the average combined rate is 7.63% — and the gas tax is 22 cents a gallon.

By contrast, Illinois — topping the least-friendly list — has an effective flat-tax rate of 4.95% for single filers and 4.63% for joint filers, but residents are hit with "a doozy" of other fees, Kiplinger says.

Property taxes are the nation's second-highest, with annual bills of $9,634 on a $400,000 home — and combined state and local sales taxes exceed 10%.

Gas taxes generally are 54 cents a gallon, though they vary by county.

Here are Kiplinger's rankings and whether they went for Trump (red) or Democrat Hillary Clinton (blue) in 2016:

The most tax-friendly:

  1. Wyoming, red.
  2. Nevada, blue.
  3. Tennessee, red.
  4. Florida, red.
  5. Alaska, red.
  6. Washington, blue.
  7. South Dakota, red.
  8. North Dakota, red.
  9. Arizona, red.
  10. New Hampshire, blue.

The least tax-friendly:

  1. Illinois, blue.
  2. Connecticut, blue.
  3. New York, blue.
  4. Wisconsin, flipped to red in 2016.
  5. New Jersey, blue.
  6. Nebraska, red.
  7. Pennsylvania, flipped to red.
  8. Ohio, flipped to red.
  9. Iowa, flipped to red.
  10. Kansas, red.

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Wyoming and six other states President Donald Trump won in the 2016 election are the most tax-friendly, while eight blue states - including four flipped by the Republican - are among the least tax-friendly.
state tax rates, 2016 election, trump, hillary clinton
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2019-15-01
Tuesday, 01 October 2019 01:15 PM
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