Each state in the U.S. has its unique approach to taxation, significantly influencing residents’ financial health. The increasing trend of remote work has further fueled the discussion around the impact of state taxes, as individuals are no longer bound to live near their workplaces.
To determine the tax efficiency across the U.S., MoneyGeek undertook a comprehensive study, leveraging data from the U.S. Census Bureau, the Tax Foundation, and the U.S. Bureau of Labor Statistics’ Consumer Expenditure Survey. This research culminated in a grading system ranging from “A” for the most tax-efficient states to “F” for those with the heaviest tax burdens, considering sales, income, and property taxes.
The findings revealed that Nevada stands out as the state with the highest tax efficiency, with residents facing an average tax bill of $2,949. In stark contrast, Illinois emerged as the least tax-efficient, where the average family tax bill soars to $12,472 annually.
The disparity in tax burdens is stark, with a typical middle-class family in Illinois shouldering $9,524 more in taxes annually compared to a family in Nevada.
The study also linked tax efficiency to population trends, noting that states with an “A” rating in tax-friendliness saw a population growth of 0.9%, while those rated “F” experienced negligible growth. Florida, in particular, enjoyed a substantial 2.1% population increase, the highest nationwide, coinciding with its “A” tax-friendliness rating. Conversely, New York, with a “D” rating, witnessed the most significant population decline at -0.8%.
New Mexico has a “C” rating, with the 20th-highest tax burden. MoneyGeek notes that the estimated taxes are $6,808, with a 7.1% tax burden.
In an in-depth look at the tax landscape, MoneyGeek’s analysis identified the ten most and least tax-friendly states. The study defined a typical middle-class family as a married couple with one dependent, earning the median national income and owning a median-valued home. This benchmark family found Nevada, North Dakota, Wyoming, Tennessee, and Washington to be the most tax-efficient states. Notably, all “A”-rated states, except Arizona, benefit from having no state income tax, a trait shared by South Dakota and Texas, which both received a “B” rating. In these tax-friendly states, taxes account for merely 5% of a typical household’s income.
Conversely, the least tax-friendly states impose taxes that constitute 11% of a typical family’s income. Illinois, the lowest-ranked state, sees taxes consuming an astonishing 13% of household income. Most of the bottom ten states are situated in the Northeast or Midwest, with Oregon being the only exception.
Not surprising for NM, they are like the 3 worst state in properly spending our tax dollars. I am just confused why they suck so bad? Though they collect more than most states in taxes (% wise). It must be the part that they do not know how to budget to make the state better. Where I live I have no-one to support my beliefs in DC, I do have a right leaning state senator a POS left wing state congressmen (Slick Willie) that told me to my face he does not work for me (me as “we the people”. So with only one guy out of seven that sort of supports my beliefs I have little faith in anything getting fixed until NMs pull their heads out of their butts and realize they are conservatives voting for left wing marxist.
This tax burden and the wild spending was why MLG had a heavy hand in getting rid of John Arthur Smith. He was a democrat, but knew the best journey for the state where money was concerned. When he voted against her abortion bill she used that as a chance to kick him out. There is no one in her party that will go against her on financial issues.
New Mexico along with ALL democRAT led states are shit-holes states that only care about having POWER over money and peoples lives!!! So glad I got as far away from the little Nazi and NM as possible,,,,
Good for you. We need fighters here that will stay in the arena.
God brought me to New Mexico via a job, I am a fighter, that is why I am here. There is oppression and the pain of many aborted children. Beware of the sin of getting used to it. Jesus is in NM, find him, it is the only way.
You can bet that when Wuhan-Grisham realizes she’s only “average” @ a “C” grade, she’ll enforce “D” or “F” grade taxation to keep up w/ the Big-Blue states in racing to the bottom