Sunday, April 02, 2006

Deciding where to live? Consider the tax burden.

When deciding where to live, or possibly where to retire, you might want to look at the tax burden.

First, the U.S. Census Bureau has recently published an interesting chart: States Ranked by Total Taxes and Per Capita Amount: 2005. The chart considers only state taxes. The highest tax per capita? Vermont, followed by Hawaii and Wyoming. The lowest? South Dakota, followed by Texas and New Hampshire.

The Tax Foundation publishes an interesting study, ranking states by the amount of taxes one pays in that state: State and Local Tax Burdens Compared to Other U.S. States, 1970-2005.

Certainly property taxes are of concern. In California, for example, there is Proposition 13 that has provisions in place for determining property taxes on purchase and for increases. Many states do not have restraints on property taxes, making it much harder to budget.

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