Massachusetts couples pay highest percentage of income in taxes in nation, report finds
It’s tax season, and in news that may not surprise Bay State taxpayers, couples living here are having to shell out the highest percentage of their income in taxes.
“The biggest takeaway for me was just how broad the spread can be across the country,” Josh Koebert, study author at FinanceBuzz.com, said in an email.
He noted that the difference between states like Florida and Massachusetts was 50%. “It’s a huge difference,” he said, “50 percent more paid in taxes every year, almost all of which comes down to state-level income tax laws. “
The study compared the median income of full-time workers in each state, derived from the US Census Bureau, to federal and state tax rates for the 2021 tax year.
Massachusetts took the top spot for couples filing jointly, with couples paying 23.51% of their income in taxes. Close behind are Oregon at 23.24%, Hawaii at 23.05%, and Connecticut at 22.99%. The lowest rate was in Tennessee, with taxpaying couples only having to pay 15.54% of their income in taxes.
For single filers, Massachusetts took second place, at 23.23%. Oregon edged out Massachusetts at 23.37% to take first place. Connecticut and Hawaii were not far behind, and Florida singles were in last place, with 15.52% of their median income owing to taxes.
The report notes that Massachusetts residents pay the highest federal tax rate in the country, at 18.58%, which is attributable to the fact that they have the highest median annual income in the country.
Eileen McAnneny of the Massachusetts Taxpayers Foundation made the same observation, but also noted that our expensive real estate also contributes to high property tax. Massachusetts also has an income tax,
Paul Diego Craney, of the curator Mass. Fiscal Alliance, reminded the Herald that state lawmakers are proposing a ballot measure that would raise income taxes for the wealthiest earners, as well as some businesses.
“The public needs to realize that when they send part of their salary to Statehouse lawmakers to spend, they are already the most generous in the land and yet lawmakers always want more,” he said. -he declares.