Americans are spending a pretty penny on taxes.
Some Americans are paying more money for taxes than they are on food, clothes and health care combined, according to a recent report from the U.S. Bureau of Labor Statistics. With that in mind Kiplinger is out with its annual state-by-state guide on taxes, and it yielded some surprising results. More so due to a state that didn’t make the least tax-friendly state list: California.
”Everyone wants to know why California is not on the list,” said Rocky Mengle, a tax editor at Kiplinger, in an interview with Yahoo Finance’s On The Move.
”People focus on the fact that the state has the highest top state income tax rate in the country at 13.3%... but that’s for people making $1 million or more. California quite frankly has a rather progressive tax rate structure,” he said.
The state that held the top spot as the least tax-friendly was Illinois. The main reason: property taxes. In California, property taxes are “middle of the road. They’re not that high,” said Mengle.
According to the Kiplinger survey, Illinois property taxes are the second-highest in the nation. In the state, property taxes are $2,408 per $100,000 in home value. That means if you bought a home for $400,000 in Illinois, the average annual property tax bill would be $9,632.
Other states that topped the least tax-friendly list are Connecticut, New York, Wisconsin and New Jersey.
Wyoming, Nevada, Tennessee, Florida and Alaska were the top five tax-friendliest states in the country.
Bridgette Webb is a producer at Yahoo Finance. Follow her on Twitter @bridgetteAwebb.
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