Florida falls close to average. In the Sunshine State, residents paid 9.3 percent of their income in state and local taxes during fiscal 2012, according to the Tax Foundation study.
The nation as a whole paid 9.9 percent, the most recent year for which data is available. That percentage is consistent with the total from 2009 but down significantly from 10.3 percent in 1977 – the first year the Tax Foundation did estimates.
After New York, the states with the next highest state and local burden are New Jersey, Connecticut, California and Wisconsin. Following Alaska up the list of states with the smallest burden are South Dakota, Tennessee, Louisiana and Wyoming.
The Annual State-Local Tax Burden Ranking report estimates the average total tax burden for residents of each state. It includes in-state taxes and also taxes paid to other states, such as those paid by residents who work in other states or cross borders to shop. The Tax Foundation says it studies taxes from the taxpayer’s perspective and counts all taxes paid, which differs from many studies that measure tax income recorded by state tax collectors.
“Some states are able to shift significant portions of their tax burdens to nonresidents, with Alaska being the most aggressive,” says Tax Foundation economist Elizabeth Malm. “The Last Frontier is able to export over 75 percent of its tax collections to residents of other states, by virtue of taxes on oil extraction. Major tourist destinations like Nevada and Florida are able to lower residents’ burden by taxing tourists, who are often nonresidents. Nationwide, over a quarter of all state and local taxes are collected from nonresidents.”
The complete tax study is posted on the Tax Foundation website.
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