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Is Colorado 'tax friendly'? Map shows every state's grade


Is Colorado 'tax friendly'? Map shows every state's grade


( NEXSTAR)-- Tax season isn't actually enjoyable for anybody, however some states' citizens have it harder than others this time of year.

As households around the nation collect their paperwork and prepare yourself to submit, individuals in Connecticut, Illinois, Iowa and New Jersey may discover themselves with a heftier tax costs than their next-door neighbors in other states.

An updated analysis by MoneyGeek, an individual financing site, assesses how "tax friendly" each state is by computing the tax burden on the typical resident. States with low tax burdens made an A, while those with the greatest tax concern made Fs.

The state that scored worst overall was Illinois, where taxes represent about 13% of a mean family's income.

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Unsurprisingly, the states with no state income taxes at all wound up scoring pretty highly. Those eight states are Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming.

In some of those states, greater sales tax rates or residential or commercial property tax rates are in place to make up for the lower income tax earnings. Tennessee and Washington have some of the greatest sales tax rates in the country, the Tax Foundation states.

According to the upgraded MoneyGeek analysis, the most "tax friendly" state overall was Nevada, where the typical household owes about 4% of its income in taxes.

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13 states earned either a D or F grade for tax burdens. For some of those states, like Oregon, high personal income tax rates are to blame.

The states with the greatest top personal earnings tax rates are California, Hawaii, New Jersey, Oregon and Minnesota, TurboTax reports, but that does not always indicate individuals in those states are getting struck hardest in the end. Each of those states has its own complex set of guidelines of tax credits, deductions and income floors to pay any state taxes at all.

To carry out the research study, MoneyGeek looked at how much a theoretical household would pay in taxes if they were a couple with one dependent, a gross earnings of $94,003 (the median national income at the time of research), and a home worth about $320,900 (the mean price of a new home). The lower the taxes on this hypothetical average household, the much better the grade.

MoneyGeek's system of grading states on tax burden only holds true for that hypothetical household. A family who just purchased a $1.5 million home in California would most likely be paying a lot more in taxes, while a bachelor who makes $40,000 and is a tenant in Texas would pay less.

If you have not submitted taxes yet, you've still got time. The federal deadline to file-- or request an extension-- is Monday, April 15.

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Elwood Hill
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Elwood Hill

Elwood Hill is an award-winning journalist with more than 18 years' of experience in the industry. Throughout his career, John has worked on a variety of different stories and assignments including national politics, local sports, and international business news. Elwood graduated from Northwestern University with a degree in journalism and immediately began working for Breaking Now News as lead journalist.

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