NCPA - National Center for Policy Analysis

Taxes Highest In Three Northeast States

July 24, 2001

Connecticut, New York and New Jersey had the highest per capita state and local taxes in the country as of fiscal 1998, according to a new Census Bureau study.

Connecticut residents and businesses paid $4,425 per capita in state and local taxes -- followed closely by New York at $4,318 and New Jersey at $3,698.

  • The U.S. per capita average for state and local taxes was $2,863.
  • When the state and local tax burden is figured in proportion to personal income -- which many economists consider a better basis for comparison than sheer dollars -- Maine led the nation at 14.5 percent, with the U.S. average being 11.2 percent.
  • Local taxes exceeded state collections in only two states -- New York and New Hampshire.

The District of Columbia had a much higher tax burden than any state, collecting $5,524 from each resident -- an amount equal to 15.1 percent of personal incomes.

Source: Richard Perez-Pena, "1,2,3: Connecticut, New York and New Jersey Lead in Taxes," New York Times, July 24, 2001.


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