January 2009 – From Kiplinger’s Personal Finance magazine
Choosing a new place to live can be a difficult decision, whether you’re single, are new parents or are nearing retirement. Housing costs, living expenses and taxes often come into play as deciding factors. We can bring you some help on the tax issue, with this list of U.S. cities with the lowest state and local tax burdens (as a percentage of gross income).
This top-ten list — based on local income, sales, real estate and car/personal property taxes from 2007 returns– comes from the latest survey by the District of Columbia government of the tax bite in the largest city in each of the 50 states and Washington, D.C. The survey looks at couples with various income levels. We chose the rankings for a dual-income couple, with one school-age child and a combined gross income of $75,000 in 2007. The real estate and car taxes were calculated based on averages in this income group.
Not surprisingly, seven of the top ten cities are in states with no income tax. All ten cities have an overall state and local tax burden substantially below the national median of 8.5%. Based on the tax burden on a hypothetical dual-income couple earning $75,000 in the largest city in each of the 50 states and Washington, D.C., the national median taxes are: state/local income, $2,634; real estate/property, $2,391; sales, $1,321; and auto/personal property, $502
Income tax: $0
Property tax: $1,326
Sales tax: $1,512
Auto tax: $665
OVERALL TAX BITE: 4.7%
Urban Facts: Levies on mining and oil account for nearly half of the Equality State’s tax revenues.
Cheyenne is in close proximity to the geographical center of North America.