High-Tax Places to Live

Here's a look at the cities where residents fork over the most to government

By Emily Brandon

Posted: November 25, 2008

People who live in high-tax cities often shell out more than twice as much in taxes as people who have found low-tax havens. A hypothetical family of three making $25,000 in 2007 would have paid $4,233 for taxes in Philadelphia, the most highly taxed city in the country, according to calculations by the District of Columbia's Office of Revenue Analysis. If that same family had lived in Anchorage, the large city with the lowest taxes, it would have paid just $1,880, the study showed. For high-income families, the difference in tax burdens was even more striking. A family of three bringing home $150,000 annually would have paid $21,955 in Philadelphia, about four times as much as the $5,336 due in Anchorage.

Here's a look at the most highly taxed big cities, as ranked by the study, and the typical taxes paid at a few income levels.

Note: The four taxes used in the comparison are individual income tax, real property tax on residential property, general sales and use tax, and automobile taxes, including gasoline tax, registration fees, excise tax, and personal property tax. Federal income taxes are not taken into account.

Source: Government of the District of Columbia, Office of the Chief Financial Officer, Office of Revenue Analysis, 2008

State and Local Tax Burden for a Family of Three in 2007

  Income Tax Property Tax Sales Tax Auto Tax Total Tax Share of Income
1. Philadelphia            
Gross Family Income            
$25,000 1,672 1,786 566 209 4,233 16.9%
$75,000 5,036 5,199 1,046 325 11,606 15.5%
$150,000 10,009 9,898 1,645 404 21,955 14.6%
2. Baltimore            
$25,000   0 1,786 661 192 2,638 10.6%
$75,000 3,689 4,797 1,271 314 10,070 13.4%
$150,000 8,664 9,133 2,026 373 20,196 13.5%
3. Bridgeport, Conn.            
$25,000 7 1,786 626 174 2,592 10.4%
$75,000 2,514 5,680 1,174 302 9,670 12.9%
$150,000 6,850 10,816 1,851 738 20,255 13.5%
4. Detroit            
$25,000 602 1,786 595 190 3,173 12.7%
$75,000 3,745 3,998 1,097 383 9,223 12.3%
$150,000 9,287 7,612 1,735 648 19,281 12.9%
5. Indianapolis            
$25,000 804 1,786 668 112 3,370 13.5%
$75,000 3,181 4,080 1,227 171 8,658 11.5%
$150,000 6,566 8,960 1,935 216 17,677 11.8%
6. Milwaukee            
$25,000 0 1,786 604 249 2,638 10.6%
$75,000 2,945 4,103 1,155 393 8,597 11.5%
$150,000 7,415 7,890 1,866 481 17,652 11.8%
7. Des Moines            
$25,000 450 1,786 668 413 3,316 13.3%
$75,000 2,354 3,888 1,249 917 8,409 11.2%
$150,000 6,191 7,605 1,905 1,140 16,886 11.3%
8. Louisville, Ky.            
$25,000 1,354 1,786 588 174 3,902 15.6%
$75,000 4,582 2,048 1,123 382 8,135 10.8%
$150,000 10,025 4,252 1,769 535 16,581 11.1%
9. Columbus, Ohio            
$25,000 763 1,786 654 182 3,384 13.5%
$75,000 3,640 2,913 1,206 279 8,039 10.7%
$150,000 9,192 5,547 1,888 350 16,977 11.3%
10. Omaha            
$25,000 0 1,786 712 283 2,780 11.1%
$75,000 2,038 3,833 1,323 622 7,817 10.4%
$150,000 6,435 7,291 2,130 973 16,828 11.3%

 

property tax

property tax should be based on a persons income. Counties should be ashamed of kicking long time tax payers out of their homes because they can't afford property tax.

And eliminate the fed deduction for interest paid

hank wheelerr of CO @ Mar 12, 2009 10:36:42 AM

Real Data

It's a dumb article, with a dumber table.

One might have expected the table to show actual rates for each tax, so the reader could compare to his location. But more important, many people leve in suburban areas near a city, so city taxes alone may not be (probably are not) relevant.

More important, the article doesn't discuss services. In some areas, garbage collection is included in local taxes, in others it is paid for separately. In some areas, a significant part of the population uses public transportation, In those areas, automobile costs are likely to be lower, and taxes are likely to subsidize mass transit.

Easy for a stupid editor to fill space, but not so easy for a reader to get information.

Gene of NY @ Mar 10, 2009 09:04:47 AM

Something is wrong with the calculations. I know that Wisconsin has a higher income tax than Indianna.

jim of WI @ Dec 10, 2008 15:23:40 PM

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