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Not all state taxes are created equal, and some states charge their residents much more than others to live there.
So I asked ChatGPT to identify which states have the highest total tax burden and explain why it costs so much. Here it is said.
1. New York
Not surprisingly, New York has the highest tax rates in the US
There’s a progressive in New York state income tax A system with nine tax brackets ranging from 4% to 10.9% (depending on your income level). In addition to state income tax, state sales tax rate Is 4%, with local tax rates added to that amount. For example; New York City added another 4.875% to the sales tax rate, bringing the total to 8.875%.
And property taxes vary, but because real estate prices are so high in New York, residents are paying more than in many other states.
2. California
It’s also not surprising that California has the highest tax burden in the US, largely due to its state income tax rates.
California also has a progressive tax structure with individual State Income Tax Rates California also has very high rates, ranging from 1% to 13.3%, the highest state income tax rate in the US. sales and use tax The 7.25% rate, combined with some jurisdictions, brings it closer to 8% or 9%.
Property taxes are limited by Proposition 13 but can still cost a lot of money due to high home valuations.
3. New Jersey
With a progressive income tax system and high property taxes, New Jersey is a more expensive place to live and pay taxes.
State income tax limit is from 1.4% to 10.75%The top rate applies to income over $1 million. New Jersey also has a statewide sales tax Of 6.625%.
Property taxes fluctuate by county, but are among the highest in the US due to local funding for schools and municipal services.
4. Illinois
While Illinois doesn’t seem like a state that would charge high taxes, it does have a flat state income tax, moderate sales tax, and very high property taxes (depending on the county).
State personal income tax is a flat 4.95% No matter the income level, and a statewide 6.25% sales tax (But local governments raise it even higher). Property taxes vary by county, but are a major driver of the state’s overall tax burden.
5. Connecticut
Connecticut levies a progressive state income tax, a moderate sales tax, and a high property tax.
There are seven state income tax brackets, ranging from 3% to 6.99% (Based on income). Connecticut also applies statewide sales and use tax Of 6.35%.
Like most states, property taxes vary depending on the county, but in some municipalities it can become a heavy burden for homeowners with valuable homes.
A note about AI and financial advice
AI tools like ChatGPT can help summarize publicly available tax information and explain differences between states. However, they should not take the place of professional tax advice.
Tax laws change frequently, and your individual tax situation depends on many factors, including income level, deductions, and where you live. Before making financial decisions based on tax data, consider consulting a qualified tax professional or financial advisor.
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