The Best, and Worst, States to Avoid Income Taxes.
You know at some level that state taxes change across states, unlike federal which are same no matter what. But. I don't think we really internalize by just how much states differ.
Some have flat tax, others have percentage of income, others still have progressive tax systems (high earners pay way more), and so on and so forth.
The below handy chart gives you a sense for how massively different things are depending on where you are. The black dot is median income group (top 50%) and the pink dot is the highest income group (the top 0.1%!).
California and Hawaii have the highest taxes, with the steepest curves (so very high taxes on top 0.1%).
Illionis, Indiana and Pennsylvania have flat taxes. Does this have anything to do with the reality that these taxes are currently caught up some of the worst budget messes in the US at the moment?
The unbeatable star of the show is Alabama. Taxes actually go down for the middle class, rich and then super rich. Alabama has one of the highest rates of poverty in the US (it is ranked #4 in highest poverty rate).
It is amazing that it's population allows this to happen (and RABIDLY votes for the politicians who deliver this poverty).
Bloomberg's analysis is interactive, you can play with single and married rates, you can look at more drill downs. Have fun with it here: http://www.bloomberg.com/graphics/2016-state-taxes/