As tax time approaches, a HousingWire analysis of metro areas' tax burdens revealed that home owners in housing markets with the lowest overall tax burdens paid a percentage of their income seven times less than the burden in some of the heaviest tax burden states.
For the study, HousingWire evaluated 2012 data by the District of Columbia’s Office of Revenue Analysis, including estimated property taxes, sales taxes, and state income taxes on major cities in all 50 states. The tax estimates were evaluated for a hypothetical family of three and for the average tax rate at household incomes of $25,000, $50,000, $75,000, $100,000 and $150,000.
Here are the five housing markets with some of the lowest tax burdens based on their analysis (including only the high and low household income information):
1. Cheyenne, Wyo.
Tax burden for a family of three earning $25,000: $2,424
Tax burden for a family of three earning $150,000: $4,702
Tax burden for a family of three earning $25,000: $2,424
Tax burden for a family of three earning $150,000: $4,702
2. Anchorage, Alaska
Tax burden for a family of three earning $25,000: $2,236
Tax burden for a family of three earning $150,000: $5,095
Tax burden for a family of three earning $25,000: $2,236
Tax burden for a family of three earning $150,000: $5,095
3. Houston, Texas
Tax burden for a family of three earning $25,000: $2,709
Tax burden for a family of three earning $150,000: $6,571
Tax burden for a family of three earning $25,000: $2,709
Tax burden for a family of three earning $150,000: $6,571
4. Fargo, N.D.
Tax burden for a family of three earning $25,000: $2,228
Tax burden for a family of three earning $150,000: $7,908
Tax burden for a family of three earning $25,000: $2,228
Tax burden for a family of three earning $150,000: $7,908
5. Jacksonville, Fla.
Tax burden for a family of three earning $25,000: $2,956
Tax burden for a family of three earning $150,000: $6,429
Tax burden for a family of three earning $25,000: $2,956
Tax burden for a family of three earning $150,000: $6,429
Meanwhile, the metro with the heaviest tax burden was Bridgeport, Conn., where taxes for a family of three earning $25,000 averages $4,001, and taxes for those earning $150,000 averages $33,208.
For the full list and to read more about the analysis, visit HousingWire.
Source: “The Best and Worst Housing Markets for Taxes,” HousingWire (Feb. 17, 2014)
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