Last year, we counted down the top 10 major U.S. cities with the highest tax burdens based on a 2010 study by the Office of the CFO in Washington, D.C. (Tax Rates and Tax Burdens in the District of Columbia – A Nationwide Comparison). Bridgeport and Philly topped the list then, but how did they fare in the most recent study released using data from 2011?
While federal tax rates stay the same regardless of where the taxpayer lives, the same is not true for state and local taxes. The tax burden of taxpayers living in different parts of the United States varies due to differences in state and local income taxes, property taxes, sales taxes and automobile taxes. So how does your city stack up?
The top ten cities* with the highest tax burden for a hypothetical family of three making $50,000 in 2011:
#10 Boston, MA
Paul Revere made his famous midnight ride on horseback here — but today, trading in the horse for a car of your own would cost $303 in taxes per year. The total tax burden for our hypothetical family in Boston sits at 12.2%, or about $6,125 annually.
#9 Burlington, VT
Vermont’s largest city, home to the very first Ben & Jerry’s, was ranked by Forbes as one of the prettiest towns in America — and we’re sure its 42,500 residents agree. But at a 12.3% tax burden ($6,150 per year), it’s #9 on our list of the most taxed cities in America.