FOSTER CITY, Calif., March 16, 2015 (GLOBE NEWSWIRE) -- According to new research by personal finance website MoneyRates.com, residents of Washington D.C. confront the highest overall federal tax burden in the nation. Arkansas residents encounter the country's lowest overall federal tax burden.
This analysis examined all 50 states' and the District of Columbia's ranking on two metrics: The first was the amount the state pays in federal income taxes per capita, and the second was an equally-weighted calculation of effective federal income tax rates across income brackets. The equal weighting was meant to avoid skewing the state's average tax rate in accordance with its relative wealth.
Washington DC earned its ranking by placing second in both per capita taxes paid ($8,820.13) and the equally weighted rate category (12.32 percent) for the 2012 tax year, the most recent year for which data is available. Arkansas took its position by paying the fourth-lowest amount of taxes per capita ($3,100.71) and having the fifth-lowest equally weighted tax rate (10.81 percent).
Here are the 10 states with the highest overall federal income tax burden, according to the MoneyRates.com study:
1. Washington DC
2. Massachusetts
3. Connecticut
4. North Dakota
5. (tie) Alaska
5. (tie) New Jersey
7. New York
8. (tie) Illinois
8. (tie) Texas
10. Pennsylvania
Here are the 10 states with the lowest overall federal income tax burden, according to the MoneyRates.com study:
1. Arkansas
2. Idaho
3. South Carolina
4. Mississippi
5. Hawaii
6. (tie) Utah
6. (tie) Oregon
6. (tie) Kentucky
9. North Carolina
10. Montana
On a national level, the study found that people earning more than $100,000 paid an effective tax rate nearly three times that of the rest of the population.
"A lot of resentment of high earners in recent years has been based on the implication that they aren't contributing their fair share," says Richard Barrington, CFA, senior financial analyst for MoneyRates.com and author of the study. "If you look at tax rates though, they certainly are shouldering a heavier burden to go along with their higher earnings."
For more details on the survey, please see the full feature on MoneyRates.com and the full 50-state rankings.
Methodology
The study used 2012 tax data from the Internal Revenue Service and population data from the U.S. Census Bureau to form its rankings.
About MoneyRates.com
MoneyRates.com has been a leading source of information on bank rates, personal finance, savings accounts and investing since 1999. The site seeks to provide the highest rates on CDs, money market accounts and high-yield savings accounts. MoneyRates.com is owned and operated by QuinStreet, Inc. (NASDAQ: QNST), one of the largest Internet marketing and media companies in the world. QuinStreet is committed to providing consumers and businesses with the information they need to find, research and select the products, services and brands that best meet their needs. The company is a leader in visitor-friendly marketing practices. For more information, please visit QuinStreet.com.
CONTACT: Alex Bryant
abryant@quinstreet.com
212.863.4753
