![]() ![]() In contrast, a low-tax state like Maryland only taxes 4.75% on earnings between $3,001 and $100,000. Hawaii and Montana have the second- and third-highest tax burdens because both states have marginal rates close to 7% for residents earning $20,000 or more. The effective tax rate in Oregon is somewhat lowered by the state's standard deduction and a personal exemption credit worth nearly $3,000, but the overall tax burden is still the highest of all states. Every dollar above $10,200 is taxed 8.75% in Oregon, while many other states tax income under $75,000 around 5%. The reason why Oregon has the highest effective tax rate for people earning $75,000 is because it levies a relatively high rate starting at a low threshold. ![]() That's why effective tax rates are a better measure of a taxpayer's overall bill, according to the Tax Foundation. Idaho (4.73% effective tax rate): $3,547Īs mentioned above, with marginal tax rates, you only incur higher rates on income past a certain threshold.West Virginia (4.83% effective tax rate): $3,620.These calculations use effective tax rates, which represent the actual percentage you pay on all taxable income. Here's a look at the 10 states where people earning $75,000 owe the most in state income taxes, based on Tax Foundation calculations. Additionally, every dollar is taxed, unlike some marginal tax states where low earners are exempt from paying taxes. (Their effective tax rates below are a bit lower due to state-specific tax exemptions.)Ī flat tax means every resident pays the same rate, regardless of income. Of the 10 states with the highest tax burdens for a single tax filer earning $75,000, eight have marginal tax rates, while two, Illinois and Idaho, have flat taxes of 5% and 5.8%, respectively. While the highest marginal rate in Oregon is 9.9%, it only applies to income above a $125,000 threshold, so any earnings below that amount are taxed at a lower rate. ![]() No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.Like most states, Oregon uses a progressive or marginal income tax, which collects at an increasing rate the more income you earn. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. GMS Flash Alert is a Global Mobility Services publication of the KPMG LLP Washington National Tax practice. ![]()
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