February 2, 2007

State Income Taxes: Ohio Comes Out Very Poorly

Filed under: Taxes & Government — TBlumer @ 6:05 am

From the Tax Foundation (HT Club for Growth) — a table that shows all of the states and how they tax income:

  • AK, FL, SD, TX, WA, and WY have no income tax (How dooooo they do it?).
  • TN and NH (HT to Kevin for catching) apparently only tax interest and dividends.
  • Ohio’s highest marginal rate of 6.87%, is definitely in the above-average echelon of rates. A quick eyeball of the table tells me that 15 states (AR, CA, ID, IA, ME, MN, MT, NE, NJ, NC, OR, RI, SC, UT, VT) plus DC have a higher top rate. Ohio’s highest rate kicks in at a relatively high level ($200,000), but the rates at most income levels leading up to the highest rate range from 4.8% to 6.3%, which are wayyyyyy too high.

7 Comments

  1. I know that TX skimps on services and has a high crime rate. Alaska, South Dakota, and Wyoming have small populations, hence small government works *really* well.

    You neglected to mention NH, which has no personal income tax and no sales tax.

    Comment by Kevin — February 2, 2007 @ 9:00 am

  2. #1, thanks for the catch, tho I saw that NH taxes dividends and interest above a semi-high level. The Tax Foundation’s table is a real PITA to slog through.

    TX’s high crime rate is due to illegals, IMO, and not the lack of an income tax.

    Comment by TBlumer — February 2, 2007 @ 9:16 am

  3. Pennsylvania gets by just fine on a flat rate 2.5% tax on EARNED income. That’s right, dividends, interest, etc. are not taxed. How can Ohio compete with that?

    Comment by Mack — February 2, 2007 @ 9:41 am

  4. My Texas friends carry guns in their cars because they have been shot at by white men in trucks. I don’t see (with my eyes) the negative impacts of illegal immigrants, so I would be interested to see the data that would support your claim. Our illegal immigrants fly in on Aer Lingus jets, work construction jobs, and don’t fly back.

    Comment by Kevin — February 2, 2007 @ 10:17 am

  5. Effective State and Local Tax Burdens by State and Rank Projected for 2006 is a good analysis of taxes as a percentage of Income.

    Alaska is #50 (best) at 6.6%…Maine is #1 (worst) at 13.5%.

    Comment by Porkopolis — February 2, 2007 @ 1:12 pm

  6. #3, I don’t know.

    #4, I have a previous post with two stats on illegals and crime that are blowaways (near end of post):
    http://www.bizzyblog.com/?p=3231

    Comment by TBlumer — February 2, 2007 @ 5:29 pm

  7. #5 thanks for that link.

    Comment by TBlumer — February 2, 2007 @ 5:30 pm

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.