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Do You Live in a Tax-Friendly State?

Contributed by mm | July 1, 2004 10:30 AM PST

Another article on state-by-state tax differences; this time from Morningstar.

The conclusion:

Best States for Keeping Salary

Wyoming
Alaska
New Hampshire
Nevada
Tennessee
Washington
Florida
South Dakota
Texas
Alabama

Worst States for Taxing Salary

Rhode Island
Vermont
California
District of Columbia
Maine
Oregon
New York
Idaho
North Carolina
Nebraska

Best States for Retirement

Hawaii
Wyoming
Delaware
Colorado
Arizona
Alabama
Nevada
Louisiana
Alaska
Washington

Worst States for Retirement

Wisconsin
Nebraska
Connecticut
Kansas
Rhode Island
New Jersey
Illinois
New York
Texas
Maine

Best States for Overall Wealth Friendliness

Wyoming
Nevada
Tennessee
Alabama
Alaska
Colorado
Washington
Louisiana
Delaware
Arizona

Worst States for Overall Wealth Friendliness

Rhode Island
Wisconsin
New York
Vermont
Nebraska
New Jersey
Maine
Idaho
Ohio
Oregon

For the same topic, you may also be interested in this Kiplinger's Tax Map.

This Post Has Received 54 Comments. Share Your Opinions Too.


XTOCb Commented on December 11, 2004

The article is plain wrong about Rhode Island. The RI tax rate is not 25% of taxable income; it is 25% of the federal tax liability - so if your federal tax rate is 28%, your RI state income tax would be 7%. Such a system makes filing state taxes a breeze. There are pretty much four lines to use: 1) Federal tax liability from 1040; 2) 25% of that; 3) how much state taxes did you have withheld; 4) tax owed or refund.


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