Because they are used to pay for a variety of public services including healthcare, education, and infrastructure, taxes play a critical role in every economy. But when it comes to taxes, not every state is created equal. While some states have generally high tax rates, others have certain taxes that are disproportionately onerous. In this essay, we examine the states with the highest tax burdens and address some relevant issues.
New York has the greatest tax load in the US, according to WalletHub’s 2021 Tax load by State study. The state’s overall tax burden is 12.79%, which is a lot more than the 9.8% average for the country. The high income, property, and sales taxes in New York are the main contributors to the high tax burden. Other states with high tax burdens include Connecticut, Hawaii, Vermont, and Minnesota.
At 9.55%, Tennessee’s total state and local sales tax rate is the highest in the US. State sales taxes in the state are 7%, greater than the 6% national average. Furthermore, Tennessee’s municipal governments have the authority to enact their own sales taxes, which can range from 1.5% to 2.75%. Louisiana, Arkansas, Washington, and Alabama are additional states having high sales tax rates.
Currently, Social Security benefits are tax-free in 37 states. Alaska, Arizona, Arkansas, California, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Nevada, New Hampshire, New Jersey, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Virginia, Washington, Wisconsin, and Wyoming are these states.
Yes, Vermont’s sales tax applies to maple syrup. All tangible personal property sold in the state is subject to a 6% sales tax, including maple syrup. However, Vermont does provide exclusions for some foods and drinks, such as hot baked products, non-alcoholic drinks, and food sold for consumption off-site. Although maple syrup isn’t expressly free from the sales tax, it might be if it fits the requirements.
Finally, taxes can greatly differ from state to state and have a big impact on people’s budgets. The states with the largest tax burdens include New York, Hawaii, and Vermont, while some of the states with the highest sales tax rates are Tennessee, Louisiana, and Arkansas. Additionally, a handful of states do not impose taxes on Social Security income, which can be a crucial factor for seniors. Finally, while certain foods and beverages are exempt from Vermont’s sales tax, maple syrup is subject to it.