Thinking about moving? Before you start packing for your move, don’t forget to research the tax rates in your new state. Some states have very high income, property, and sales taxes which quickly add up to take a major portion of your budget. Think carefully before you choose to live in these 10 states if you want to protect your hard-earned money from high taxes.
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California
California has it all – beaches, mountains, Hollywood & Silicon Valley. But the state income tax rate is a staggering 13.3%, which is the highest level found anywhere in the country. Housing prices keep soaring, gas is expensive and sales taxes make living costs unbearable. Even those with high incomes will find that a major portion of their earnings is going directly to state taxes. The weather here is fantastic but does the cost justify this living expense?
New York
New York is one of the most thrilling cities to reside but it comes with high tax burdens. New York state income tax rates reach up to 10.9% and residents also face additional local tax charges. Upstate property taxes are high – the total cost of living becomes outrageous due to rent prices along with grocery and transportation expenses.
New Jersey
New Jersey attracts visitors with its diners and beaches and proximity to NYC but it is notorious for its high property taxes. Living in New Jersey means paying a 10.75% state income tax rate. At the same time, it’s also a great location to live if you’re employed in New York City. Even everyday expenses such as car insurance and toll payments add to the cost of living in this location.
Illinois
Illinois combines Chicago’s urban atmosphere with its small-town appeal yet faces one of the highest property tax rates in the country. The state income tax remains flat at 4.95% but property taxes significantly increase the total tax burden. The current financial state of the state looks poor – this suggests that residents may face higher taxes in the future.
Connecticut
Connecticut has beautiful scenery, great schools, and a prime location between New York and Boston but it also has sky-high taxes. The maximum income tax rate reaches 6.99% and property taxes remain excessively high. The classic New England charm will come with additional expenses.
Hawaii
Hawaii is one of the world’s most stunning destinations but its cost of living remains high. The state income tax rate reaches 11% while the cost of living is extremely high. The price of groceries and housing rises because the majority of these products need to be imported. Living in paradise daily is worth it if you can afford the expenses it brings.
Vermont
Even though Vermont is popular for its stunning fall foliage, skiing opportunities, and high-quality maple syrup, it also has a high tax burden. Income tax reaches 8.75% and property tax rates are also high. Outdoor enthusiasts who are willing to pay more for scenic experiences will find it worthwhile.
Minnesota
Minnesota boasts a strong job market and friendly people alongside its pretty lakes but faces high income tax rates reaching 9.85%. The combination of high property taxes and high sales taxes leads to substantial reductions in your paycheck. The cold winters make life difficult here and the taxes bring no relief.
Oregon
Outdoor enthusiasts love Oregon because of its forests, mountains and coastline as well as the absence of sales tax. Don’t get too excited because income tax reaches 9.9% which quickly reduces your disposable income. The cost of homes in Portland has risen dramatically. Moving to this area will save you money at the checkout counter but will lead to higher costs in other areas.
Massachusetts
Massachusetts, with its top universities, healthcare facilities and rich historical sites, is one of the costliest states to reside in. The flat 5% income tax might seem fair but property and sales taxes build up quickly. Boston residents should anticipate high rental costs alongside expensive grocery prices, which lead to a costly lifestyle overall.
Disclaimer: This list is solely the author’s opinion based on research and publicly available information.
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