This article was written with the assistance of A.I. technology, and has been edited and fact-checked by Melly Alazraki.
Connecticut residents pay the most in state and local taxes in the United States, according to the Tax Foundation, with an average annual tax burden of $12,151 per capita in calendar year 2022.
The state’s individual income tax collections amounted to $2,845 per capita in fiscal year 2021, the second highest amount in the country, while the average property tax collections amounted to $3,295 per capita in fiscal year 2020, also the second highest of the 50 states. Property tax is also the largest source of state and local tax revenue in the state, accounting for 39.0% of all tax revenue.
Property taxes are typically paid as a percentage of the value of assets like land, houses, and even cars or boats in some circumstances. In many of the states where people pay the most in taxes, effective property tax rates are higher than the national average. Connecticut is no different, with an effective property tax rate of 1.8% in 2020 higher than the national rate that year of 1.1%. .
The states with the highest state and local tax burdens tend to have higher-earning populations. The Tax Foundation estimates that the average individual income in Connecticut was $83,294 per capita in calendar year 2021, the second highest after Massachusetts. As a percentage of income, Connecticut is also second, with state and local taxes amounting to 15.4% of state income. New York state has the largest burden as a percentage of income, at 15.9%.
While some people may argue that residents of high-tax states should pay less in taxes, others say that the high taxes help states and localities spend more and provide better services such as infrastructure and education.
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