Vermont continues to rank behind most other states when it comes to tax burden, according to a report by 24/7 Wall Street.
Two lists were compiled for this study: one that looks at overall state taxes, and another that focuses on property taxes.
In the report, tax burdens vary widely from state to state.
“While all Americans are generally subject to the same federal tax code, each of the 50 states has broad authority to levy its own sales, income, and property taxes — or not,” it states. “No two state tax structures are exactly the same.”
The data for the study came from the tax policy group the Tax Foundation. 24/7 Wall Street considered a handful of variables for its state rankings.
Property taxes are the largest revenue source for local governments, according to the report.
“Depending on where you live, property taxes can be either a trivial expense or a major financial burden,” it states.
Vermont ranks fifth in the nation for high property taxes. The report gives an overview of the key numbers: Vermont’s effective property tax rate is 1.72 percent, and the state collects a per capita property tax of $2,541.72 — the fifth highest in the nation. Median household income in the state is $57,513, the 24th lowest.
On property taxes, the neighbors to the east in New Hampshire are even worse off, posting the third highest property tax burden in the nation. The Granite State’s per capita property tax is $3,054.30, the second highest in the nation. The effective property tax rate is 1.99 percent. The median household income is $73,381, the sixth highest in the nation.
The highest property tax burden in the nation can be found in New Jersey, where residents pay 2.16 percent of their income, or $3,074.43 per capita. Their situation is largely mitigated by the second highest median household income in the nation at $80,088.
24/7 Wall Street’s other list ranks states for most taxes overall. Vermont also didn’t fare so well in this one.
Taxes paid as pct. of income: 10.3%
Income per capita: $52,225 (19th highest)
Income tax collections per capita: $1,171 (15th highest)
Property tax collections per capita: $2,542 (5th highest)
General sales tax collections per capita: $596 (11th lowest)
In the Vermont Statehouse, Democrats and Progressives have a supermajority, representing more than two-thirds of all members. This means Gov. Phil Scott, a fiscally conservative Republican, can do little to stop increases in the tax burden which might result from a new paid family leave program, a health insurance mandate and other social program expansions.
New Hampshire, in overall tax burden, fared much better than Vermont. The state ranks 44th in the nation when it comes to highest state taxes. Their taxes paid as a percentage of income is is 7.9 percent.
Maine did not fare so well, with the 14th highest overall state taxes. Like Vermont, it has high taxes paid as a percentage of income, at 10.2 percent. Residents pay $2,055 in property taxes per capita. The income per capita in Maine is $46,455.
New York has the highest state taxes in the nation. New Yorkers pay 12.7 percent of their income on taxes. Income tax collections per capital is $2,345. Not all is bad news for the Empire State — it has hey have the third highest income per capita at $64,540.
The state with the least state tax burden in the nation is Alaska, where residents pay just 6.5 percent of income on state taxes. Alaska does not have personal income or sales taxes.
Alaska is not alone in going without certain state taxes. The study notes that four states, including New Hampshire, do not charge sales taxes. Seven states don’t tax personal income.
“In some states, residents pay as little as 6.5 percent of their annual income in state and local taxes,” the report states. “In others, residents pay nearly double that amount. In the states where people pay the most in taxes, incomes also tend to be high.”