With the effects of the pandemic still lingering, the cost of living has only worsened. Everyone has felt the sting of food and shelter costs increasing, but some states are making it even harder for their citizens. Between property, food, and income taxes, these states are sucking middle-class families empty.
1. Pennsylvania
The Keystone State has a bad reputation with taxes as it is, but the average property tax rate for the state is at an all-time high. For a home that costs $300,000, the state-wide average tax would come out to $4,074. Pennsylvania has a state income tax range of 3.07%, which is one of the worst.
2. Michigan
Michigan’s flat rate for state income tax sits at 4.25%, which is higher than what you will find for most middle-class families nationwide. To pair with the alarming flat rate, the property tax for a $300,000 home would come down to about $3,972 a year, which may be enough to sway families in the other direction.
3. Connecticut
This is a smaller state, yet the property tax is through the roof. With a property value worth $300,000 yearly, you would pay about $5,871 yearly, the third-highest in the United States. The state income tax range sits at 3% and will range to about 6.99% depending on your income.
4. New Jersey
The Garden State clocks in with a state income tax range of 1.4% on income up to $20,000 and up to 10.75% on income over $1 million. While their income tax is reasonably high, the property tax is where they get you. New Jersey has the highest property tax in the U.S.; a $300,000 home would total a whopping $6,771.
5. Kansas
While not all forms of taxes are high in the Sunflower State, with their sales tax being the most significant contributor to the bad reputation, Kansas has the ninth-highest average combined state and local tax rate of 8.71%. Not only are local tax rates high, but the property taxes are above average. With a home costing $300,000, you would pay about $3,990 annually.
6. Maryland
The Oil Line State does not treat middle-class families well when it comes to the state and local income tax. Maryland has the highest income tax bill in the whole country. While the income tax is very high, the property tax is not as bad; a family with a $300,000 house would pay roughly $2,961 a year.
7. Illinois
The lousy history of Illinois’ taxes starts with the extremely high sales tax, with 6.25% on all purchases in the Land of Lincoln. The 4.95% state income tax range may not look bad compared to some of the numbers on this list, but it is horrible compared to the rest of middle-class America.
8. Iowa
The Hawk Eye state starts with the ninth-highest state income tax range — up to 8.75% on income over $78,435. This extremely high tax range is because over 200 school districts and Appanoose County add their own income taxes on top of what the state already does. A survey shows that the average property tax rate is the 10th highest in the U.S.
9. New York
New York’s income tax rate is not that bad alone, but New York City adds its own taxes on top of what is already thrown in, so the overall local income tax bill is a lot higher for the people living within this area. The average property tax on a $300,000 home would be about $4,860 a year, which is the sixth-highest property tax rate in the country for a home at that value.
10. Wisconsin
The property tax in the Badger State earns its spot on this list, the eighth-highest in the country. A middle-class family with a home valued at $300,000 would have to put forth about $4,530 annually. The state income tax range does not treat their residents well, with a 3.54% taxable income up to $12,760 and up to 7.65% on income up to $280,950 for single individuals.
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