NCPA - National Center for Policy Analysis


April 6, 2007

In a year when the nationwide burden of state-local taxes hit an all-time high of 11 percent of income, Vermont's taxpayers are bearing the heaviest load in 2007, according to the annual study of state and local taxes by the Tax Foundation.

Other findings:

  • With 14.1 percent of income going to pay all state and local taxes, Vermont ekes out Maine (14.0) and New York (13.8) to take the top spot.
  • Falling significantly behind the leaders were Rhode Island and Ohio; Hawaii rounded out the top six as the rainbow state continues to fall in the rankings.
  • Not much has changed at the bottom where Alaska has retained the lowest tax burden every year this decade; New Hampshire, Tennessee, Delaware and Alabama complete the list of the five lowest tax burdens -- no changes from last year.

Since 2000, five states have experienced double-digit drops in their tax burden rankings:

  • New Mexico has dropped 29 places, Idaho 23 places and Utah 19 places; Georgia and North Dakota have dropped 15 and 10 places, respectively.
  • New Jersey has seen the highest increase since 2000, jumping from 24th place to 10th place; Arkansas and Indiana have both risen 10 places.

The previous high for state and local tax burdens occurred in 2005 at 10.9 percent.

Source: Curtis S. Dubay, "State and Local Tax Burdens Hit 25-Year High," Special Report No. 153, Tax Foundation, April 6, 2007.

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