Has the tax man left your pockets feeling a little light? With Tax Day having come and gone, many dentists are left smarting. The good news is that when it comes to taxes, the grass may actually be greener in another state. The number-crunchers over at WalletHub recently released their complete ranking of tax burdens on a state-by-state basis. These are the states that enjoy the lowest tax burdens.
See if your state landed among WalletHub's list of 10 states with the lowest tax burdens.
This time of year, with Tax Day having just come and gone, the pockets of many dentists are feeling a little bit lighter after the federal government has collected what was owed.
If not you, then your CPA is well acquainted with how your tax rate is calculated. Several factors determine your rate, including your yearly income and your marital status. But did you know that you can gauge how hard you’ll be hit each year by looking at your state’s tax burden?
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The tax burden of your state is different from your tax rate. Instead of calculating what you personally owe based on individual factors, your state’s tax burden is a measurement of the total personal income that residents pay toward different state and local taxes. Tax burdens vary widely across the U.S., with some states paying significantly less in taxes than others.
WalletHub has analyzed the 50 states’ tax burdens
and determined which states’ residents enjoy paying less. The analysis compared every state by looking at three tax types – property tax, individual income tax, and sales and excise tax. Then, they ranked these numbers as a percentage of total personal income in each state.
Click next to see which 10 states have the lowest tax burdens, starting with number one: