Staff Report
Tax season is fast approaching, as federal income tax returns are due April 15.
But how do taxes in Texas, which has no state income tax, stack up against other states?
According to the Bureau of Labor Statistics, every year, the average U.S. household pays more than $5,700 in federal income taxes.
WalletHub put together the differences in state tax obligations, including all 50 states and the District of Columbia.
So how does Texas rank? With 1 being the lowest in tax rates and 25 being the median, Texas taxes rank:
• 29th – overall effective state & local tax rate
• 1st – income tax (no income tax)
• 47th – real-estate tax (property ad valorem tax)
• 1st – vehicle property tax
• 38th – sales & excise taxes.
When looking at the effective total state & local taxe rates on median U.S. household, Texas had a rate of 11.17%, when adding up all local taxes paid by Texas residents. That came to $5,122 per year in local taxes on the median state household.
When adjusting for cost of living index (COL) within the state, Texas moves to 23rd place from 29th place.
Alaska came in first with an effective total state and local tax rate on mewdian U.S. household with a rate of 5.69%. It dropped to sixth place when adjusting for COL.
What state ranked last? Illinois came in at 51 (District of Columbia is included in this listing), with a tax rate of 14.54%. However, when adjusting for COL, New York takes over that designation.
The findings come from wallethub.com.
