What to Know
- A recent study published by WalletHub revealed some tax-related information that comes as no surprise to tri-state residents.
- New York, New Jersey and Connecticut are among the top 10 states with the highest tax rates, according to WalletHub.
- Overall, Connecticut ranked second highest tax rate with New York placing behind it for third and New Jersey coming last on the top ten list.
Tax season is here!
A recent study published by WalletHub revealed some tax-related information that comes as no surprise to tri-state residents: New York, New Jersey and Connecticut are among the top 10 states with the highest tax rates.
Overall, according to WalletHub, Connecticut ranked as the state with the second highest tax rate with New York placing behind in the third spot and New Jersey coming last on the top 10 list.
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The effective total state and local tax rates on the median U.S. household in Connecticut added to 14.85%, 14.08% in New York and 12.84% in New Jersey, the WalletHub study revealed. Annually, that translates to a median total of $9,385 in Connecticut, $8,900 in New York and $8,117 in New Jersey.
According to WalletHub, “Median U.S. Household” translates to: "an annual income of $63,218 (mean third quintile U.S. income); owns a home valued at $217,500 (median U.S. home value); owns a car valued at $25,295 (the highest-selling car of 2021); and spends annually an amount equal to the spending of a household earning the median U.S. income."
Overall, WalletHub notes that "taxpayers in the most tax-expensive states, for instance, pay three times more than those in the cheapest states."
News
Not only is the tri-state area among the highest for tax rates, it also ranks among the highest for the overall cost of living, with Connecticut taking the lead in 1st place, followed by New York in 2nd and New Jersey in 4th place, according to WalletHub.
U.S. taxpayers have until April 18 to file their federal tax returns. Since the season began in Jan. 24, the IRS has already issued out 30 million tax refunds.
Aside from the overall tax rate, the WalletHub study also found that New Jersey had the 5th highest gas tax rate (placing 47 out of 51 states). Additionally, both Connecticut and New York are tied in 2nd place as among the states with the highest state cigarette tax rates for a pack of 20 cigarettes.
To view the complete study, or to see the methodology used, click here.
