(Related: Top 10 Most Tax-Friendly States in US: 2018)
Advisors trying to cut the tax bill for clients or even for themselves — especially since the sweeping tax overhaul capped the deduction for property and other state taxes in high-tax states — might want to see where their state fits in on the overall tax spectrum.
Thanks to Kiplinger, that’s not all that hard to do. Using data from a wide range of sources, including states’ tax agencies, the Tax Foundation, the U.S. Census’ American Community Survey, the American Petroleum Institute, the Distilled Spirits Council of the United States, HVS Convention Sports and Entertainment Consulting, and Ranking the States by Fiscal Condition by the Mercatus Center at George Mason University, they crunched the numbers and ranked every state by how much and how often they tax their residents.
While some states took action to limit the damage caused by the tax overhaul, Kiplinger points out that “so far those efforts have been thwarted by the Treasury Department.” So you, or your clients, might be on the hook for a fair amount more than you’re used to.
To see if you’re paying more than you would if you moved elsewhere, check out the gallery above for a sampling of just some of the taxes states levy. Even more information is available at Kiplinger, but this will give you an idea of whether you might want to look for financially greener pastures — either for your clients or yourself. But if you do, be careful: Moving your residence for tax purposes can be harder than it sounds.
From income tax to property tax to inheritance and estate tax, here’s just a sampling of what the high-priced states are charging their residents. Be informed, and be warned.
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