Save Money By Moving Out Of These Top Taxed Cities
As a percentage of personal income, nobody pays more in taxes than people living in Bridgeport, Connecticut. Using data from the Office of the CFO, H&R Block estimated the tax burden of a hypothetical family of three with an annual income of $50,000 in the ten most highly-taxed cities in the United States, and Connecticut’s queen city topped the list for a second-year running.
This revelation may not come as a surprise to anyone who has lived in or around Connecticut. The state has enormously high property taxes, and also charges relatively high automobile tax. To compensate, Bridgeport’s income tax is modest, while sales tax falls toward the middle of the spectrum. The City’s total tax burden is 24.5 percent of personal income, or $12,250 for the hypothetical family of three earning $50,000 a year.
If this seems like an outlandish rate, that’s because it is — more than twice the local tax rate for the tenth city on the list. Number two on the list is Newark, New Jersey, at a total tax burden of 18.3 percent of personal income. The bulk of this figure is also due to property taxes. Manhattan, less than 10 miles east of New Jersey’s largest city, is number 14 on the top-taxed list.
Number three on the list is Philadelphia at a total city tax burden of 16.7 percent of personal income. While most of this burden is still from property taxes, Philadelphia charges a much higher state income tax.
One trend is clear about the tax burden in major cities: property rules. One interesting detail is that in Bridgeport and Newark, sales taxes accounted for a larger piece of the total pie than income taxes. In most cases, income is the second largest contributor to the city’s total tax load.