Personal finance publication Kiplinger has ranked all U.S. states to determine which is the most, and the least, tax-friendly, based on the tax burden placed on residents. According to the publication, Wyoming is the most tax-friendly. Illinois takes the bottom spot least tax-friendly, primarily due to the property tax burden.
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Personal finance publication Kiplinger has ranked all U.S. states to determine which is the most, and the least, tax-friendly, based on the tax burden placed on residents. According to the publication, Wyoming is the most tax-friendly. Illinois takes the bottom spot least tax-friendly, primarily due to the property tax burden.
According to Kiplinger, Illinois averages $2,048 in property taxes per $100,000 of home value, compared to $635 for Wyoming. Illinois wasn’t the only Midwestern state to land in the 10 worst spots, as Wisconsin was ranked 4th least friendly, Ohio 8th, and Iowa 9th.
In fact, a summary by Kiplinger of Illinois’ tax environment states:
“Illinois’ economic woes are one reason why the Prairie State tops our list of the least tax-friendly states in the country. The state ranks #50 in the latest ranking of states’ fiscal health by the Mercatus Center at George Mason University, and residents are paying the price with higher taxes.
The state’s 4.95 percent flat income tax rate actually isn’t that high when compared to other states, but other taxes are a doozy. For example, property taxes in Illinois are the second-highest in the nation. On a $400,000 home in the state, the average annual property tax bill would be an eye-popping $9,634.
Sales taxes are high, too. In some municipalities, combined state and local sales taxes exceed 10 percent . Most states exempt food and drugs from their sales tax, but that’s not the case in Illinois.”
For more information, visit https://www.kiplinger.com/tool/taxes/T055-S001-kiplinger-tax-map/index.php.
Salary history law in effect
On Sept. 29 a new law took effect that bans employers from asking applicants about their salary history. Proponents of the new law believe it will reduce the wage disparity for female and minority workers.
Under the new law, applicants will be allowed to volunteer salary history, but employers cannot use the information to make hiring decisions. Violations of the law could result in fines up to $10,000.