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Washington, D.C., Second in Nation For Highest Individual Income Taxes Per Capita

New York, Connecticut, Maryland, and Massachusetts also rank in top five

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AP
April 21, 2016

Washington, D.C., ranked second in the nation for the highest individual income taxes per capita, according to a report from the Tax Foundation.

"Individual income taxes are the single largest source of state tax revenue in the United States, accounting for 36.5 percent of all state revenue in fiscal year 2013 despite the fact that nine states forego a tax on wage and salary income," states the report. "Among states (and the District of Columbia) imposing an individual income tax on wage income, the tax accounts for an average of 43.4 percent of all state collections."

New York was the state with the highest collections, averaging at $2,550 per person. Washington, D.C., and Connecticut tied for second, with averages of $2,526 and $2,172 respectively. These areas were followed by Maryland at $2,061 and Massachusetts at $1,919.

Arizona had the lowest collections at $512 followed by Mississippi at $587, Louisiana at $592, and New Mexico at $595.

Across the nation, state and local governments collected an average of $1,070 per person from individual income taxes.

"This week’s map shows state and local combined individual income tax collections per person in the 2013 fiscal year," states the report. "This category includes broad-based taxes on wage and salary income, as well as taxes on specific types of income, such as interest and dividend."

"Forty-one states have broad-based income taxes, while two (New Hampshire and Tennessee) only tax interest and dividend income," the report states. "Seven states have no individual income taxes (Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming,"

Published under: Taxes