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% |
Reader Comments Read all comments (8)
hank wheelerr of CO 10:36AM March 12, 2009
Gene of NY 9:04AM March 10, 2009
jim of WI 3:23PM December 10, 2008