- FedSmith.com Blogs -

Tags:

How Would the ‘Fiscal Cliff’ Affect State Tax Burdens?

by Ian Smith |

You’ve by now heard about the infamous “fiscal cliff” and the tax increases set to take place in 2013. For more information on these potential increases, see What Does the ‘Fiscal Cliff’ Mean for your Personal Tax Burden? and Critical Tax Issues that MUST Be Addressed in 2012.

But what do these tax increases mean in terms of state tax burdens?

The Tax Foundation recently issued a report to help answer this question. The report is designed to illustrate the potential impact of the scheduled 2013 tax hikes on typical families in each state.

According to the report’s data, every state faces a tax increase as a percentage of income with the potential increases ranging from 4.32% to 6.82%. Some states potentially fare better than others, however. The following two tables list the top and bottom 10 states in terms of potentially increased tax burdens.

For a full state-by-state breakdown and more information on the data used to compute these figures, be sure to check out the full report on the Tax Foundation’s web site.

Top 10 States
State Median Household Income for Four-Person Family (2011) Tax Increase 2011 to 2013 Tax Increase as % of Income Rank
New Jersey $101,682 $6,933 6.82% 1
Maryland $106,707 $7,194 6.74% 2
Connecticut $100,451 $6,653 6.62% 3
Massachusetts $101,523 $6,632 6.53% 4
New Hampshire $97,441 $5,660 5.81% 5
North Dakota $84,896 $4,825 5.68% 6
West Virginia $65,403 $3,612 5.52% 7
South Dakota $72,460 $3,997 5.52% 8
Arkansas $55,444 $3,056 5.51% 9
Mississippi $58,047 $3,108 5.36% 10

 

Bottom 10 States
State Median Household Income for Four-Person Family (2011) Tax Increase 2011 to 2013 Tax Increase as % of Income Rank
Maine $78,310 $3,489 4.46% 41
Iowa $76,777 $3,383 4.41% 42
Nebraska $75,495 $3,289 4.36% 43
Delaware $83,424 $3,622 4.34% 44
California $74,122 $3,212 4.33% 45
Illinois $79,138 $3,417 4.32% 46
Kansas $74,853 $3,227 4.31% 47
Colorado $85,027 $3,646 4.29% 48
Hawaii $82,973 $3,453 4.16% 49
Washington $81,582 $3,362 4.12% 50

© 2014 FedSmith Inc. All rights reserved. This copyrighted article may not be reproduced without express written consent of FedSmith Inc.

Related Articles

About the Author

Photo of Ian Smith

Ian Smith

Ian Smith is one of the founders of FedSmith.com. He writes about current topics that impact federal employees.

Bio | Contact

If you are an Internet Explorer user, please note that Disqus may not render properly in compatability view mode.

Free Email Updates

Unsubscribe or Update Email

Daily TSP Rates

April 17, 2014

Fund Last Change YTD
L Income 16.9750 +0.0069 +0.94%
L 2020 22.0406 +0.0303 +1.12%
L 2030 23.7376 +0.0425 +1.19%
L 2040 25.1366 +0.0530 +1.22%
L 2050 14.2365 +0.0355 +1.23%
G Fund 14.3859 +0.0010 +0.69%
F Fund 16.1278 -0.0505 +2.45%
C Fund 24.2371 +0.0345 +1.52%
S Fund 33.7924 +0.1332 +0.36%
I Fund 25.7933 +0.1257 +0.90%
More TSP Rates | Track Your Investments