Happy April 15: Colorado Ranks 30th Among the States for Tax Burden

Colorado ranked 30th among the states for overall state and local tax burden, a survey found.

wallethub.com

Colorado ranked 30th among the states for overall state and local tax burden, a survey found.

April 15 is at hand, and there stands Uncle Sam, palm outstretched. But for residents of Colorado, the issue of taxes could be worse, according to an analysis of state tax burdens by wallethub.com.

Colorado ranked 30th among the states for overall tax burden, which includes all state and local taxes, at 8.49 percent. New York, the top tax burden state, is at 13.12 percent, while Alaska is the lowest at 5.18 percent. Federal income taxes are not part of the study.

In Colorado, the rate includes property tax at 2.85 percent, individual state income tax at 2.24 percent, and total sales and gross receipt taxes of 3.40 percent.

Other factoids:

  • Red states have a lower total tax burden, with an average rank of 32.00, compared with Blue states, which have an average rank of 19.38. (The lower the rank, the higher the burden)
  • New Jersey has the highest property tax as a fraction of personal income, 5.41 percent, which is four times higher than in Oklahoma, the state with the lowest, 1.42 percent.
  • New York and Oregon have the highest individual income taxes as a fraction of personal income, 4.76 percent and 4.04 percent respectively, whereas Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming do not levy such a tax.
  • Hawaii has the highest total sales and gross receipts tax as a fraction of personal income, 6.95 percent, which is six times higher than in Oregon, the state with the lowest, 1.15 percent.

To see the full wallethub analysis, click here.

States with the Highest Tax Burdens (%) States with the Lowest Tax Burdens (%)
1 New York (13.12%) 41 Texas (7.67%)
2 Hawaii (11.86%) 42 Wyoming (7.62%)
T-3 Maine (11.13%) 43 Alabama (7.41%)
T-3 Vermont (11.13%) 44 Florida (7.22%)
5 Connecticut (10.91%) 45 Oklahoma (6.95%)
6 Minnesota (10.46%) 46 South Dakota (6.94%)
7 New Jersey (10.38%) 47 New Hampshire (6.88%)
8 Rhode Island (10.36%) 48 Tennessee (6.56%)
9 Wisconsin (10.32%) 49 Delaware (5.91%)
10 Illinois (10.19%) 50 Alaska (5.18%)

 

 

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