Minnesota Is Now The Least Tax-Friendly State in the Country
We're good at a lot of things here in Minnesota-- and apparently, paying the most taxes in the country is now one of them too.
That's the word from the latest Kiplinger's State-to-State Guide to Taxes. It ranked all 50 states according to the taxes they charge residents on all sorts of things, including taxes on income, property, sales, fuel, alcohol and tobacco, and travel as well as the state's fiscal responsibility.
And the of the 10 Least Friendly Tax States, guess where Minnesota ranked? That's right. First. The biggest factor in ranking us as the Least Tax-Friendly state was our high income tax rate here in Minnesota. “It added a new top income tax rate of 9.85% in 2013. But what makes Minnesota really stand out is that its lowest income tax rate is 5.35%,” the site noted.
But Minnesota also hits us hard in the checkbook in other areas, too, the site said. And that's BEFORE any increases in other areas were proposed for next year-- like Gov. Walz's budget proposal that would add increase our gas tax by an extra 20-cents per gallon.
Following us here in the Land of 10,000 Taxes are other Least-Friendly Tax states like Maryland, New York, Illinois, Maine, Vermont, Hawaii, California, New Jersey and Connecticut.
Over my home state of Wisconsin, though, things are a little better. They're only ranked as a 'Not Tax Friendly' state, even though the gas tax in America's Dairyland is actually higher per gallon than Minnesota's. Iowa came in with a 'Mixed Tax Picture.' You can read check the entire Kiplinger Tax Map and state rankings HERE.