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Homeowners experience the burden on housing markets directly, and as a result realtors must understand these markets and their impacts. Currently homeowners experiencing the heaviest overall tax burden paid seven times more of a percentage of their income than those with the lowest overall tax burden.
In order to determine the best and worst housing markets for taxes, information was gathered from estimated property taxes, sales taxes, and state income taxes through The Office of Revenue Analysis. The standard for the lowest and highest household income is based on the average family comprised of three members. The low end of the spectrum is at $25,000 with the high being $150,000.
Tax season has arrived and the question of which states in the nation have the best and worst housing markets for taxes is a topic on many minds.
Homeowners experience the burden on housing markets directly, and as a result realtors must understand these markets and their impacts. Currently homeowners experiencing the heaviest overall tax burden paid seven times more of a percentage of their income than those with the lowest overall tax burden.
In order to determine the best and worst housing markets for taxes, information was gathered from estimated property taxes, sales taxes, and state income taxes through The Office of Revenue Analysis. The standard for the lowest and highest household income is based on the average family comprised of three members. The low end of the spectrum is at $25,000 with the high being $150,000.
The five best housing markets for taxes include: Jacksonville, FL, Fargo, ND, Houston, TX, Anchorage, AK, and Cheyenne, WY.
In Jacksonville, households that earn the highest income paid $6,429 in sales and property taxes, while those with the lowest income cost paid $2,956 in taxes.
North Dakota has historically avoided high taxation and with the increase in oil and gas jobs, the state has been able to supply greater revenue and decreases tax burdens for its residents. Fargo residents earning lower incomes paid $ 2,228 while higher incomes paid $7,908.
Houston does not allow any state or city income taxes. By adding the sales tax, Houston taxpayers end up owing $2,709 for a household of three making the lowest income amount and a rate of $6,571 for the highest incomes.
Anchorage does not have state, city income or sales tax, resulting in a burden of $5,095 for residents earning at the highest income level and $2,236 for the lowest.
Cheyenne may be the best state to avoid high market taxes with the fifth lowest tax burden for $25,000 and second lowest for $150,000.
The worst housing markets include: Columbus, OH, Baltimore, MD, Milwaukee, WI, Philadelphia, PA and Bridgeport, CT.
Columbus’ tax rate for families earning at the lowest income bracket is $2,953 and $22,333 for the highest income level.
Baltimore competes with $2,950 on the low scale and $24,747 on the high end. More than five percent of incomes in Baltimore go to state and local income taxes.
Milwaukee’s taxes cost a family of three with the lowest incomes, $3,245 and a family with high income amounts around $26,296 in taxes.
Philadelphia costs a household making the lowest income amount $3,794 while those earning the highest incomes pay $25,317. A new tax evaluation has been launched to assist in the sky-high rates in the city.
Bridgeport has a rate of one in every four dollars earned by residents going towards taxes. As dramatic as one in every four dollars sounds, a majority of the households in that housing market earn at least twice that amount, making the impact less burdensome.
As the markets continue to fluctuate, it is important to stay educated on taxes, their markets, and how these markets will affect homeowners and realtors. According to this data, western states offer homeowners better opportunities to avoid large tax rates.