Hate paying taxes? Then consider a home on the range, and keep as far away from New York as possible.
The tax burden the average American pays varies tremendously, and depends a lot on where you live, according to a study by financial social media company WalletHub.
The study ranked all 50 states and the District of Columbia.
An American making the median national income, driving an average car and living in the median-priced home could end up paying either 60 percent less or almost 40 percent more than the national average, based only on the state one calls home.
The study’s analysts created a profile of the “average American” based on median income ($65,596), median home price ($174,600) and other data, and then calculated how much the person would spend on taxes living in every state.
It drew on data from several sources, including the Census Bureau, the Internal Revenue Service, the Tax Foundation, and even the National Institute on Alcohol Abuse and Alcoholism (for taxes paid on liquor).
Best and worst states to be a taxpayer:
Wyoming had the lowest taxes for residents. That state’s taxpayers shell out 66 percent less than the national median. Alaska came in closely behind, and Nevada rounded out the top three.
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On the other hand, New York ranked dead last—its residents pay 39 percent above the national average. California is right behind at 37 percent above the average, followed by Nebraska’s 36 percent.
The study accounts for everything from income taxes to alcohol and vehicle taxes, so individual results may vary. Higher taxes can also mean more social services and benefits for residents, so their impact on metrics like quality of life and social mobility may make the expense worth it.
©2014 CNBC LLC. All Rights Reserved. Robert Ferris
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