8. California
- Our rating for the Middle-Class: Most tax-friendly
- State sales tax: 7.25 percent state levy
- Income tax: The lowest tax rate is 1 percent (on up to $17,864 of taxable income for couples who are married and file jointly and up to $8,932 for those who file as individuals), but it can go up to 13.3 percent (on more than $1,198,024 for residents who are married and file jointly and $1 million for single filers).
- Property taxes: If you’re eager to make the biggest purchase of your life here, in the Golden State, know that the median property tax rate is $729 per $100,000 of assessed home value.
The Tax Foundation says that localities are entitled to add as much as 2.5 percent, and, when combined, the average rate is 8.68 percent.
Fortunately for Californians, prescription drugs and groceries are exempt from sales taxes. However, if you’re into fashion, everything comes with a price. The Golden State taxes motor vehicles too.
7. Illinois
- Our rating for the Middle-Class: Least tax-friendly
- State sales tax: 6.25 percent state levy
- Income tax: Illinois has a flat rate of 4.95 percent of federal adjusted gross income after modifications.
- Property taxes: Those who own a home in the Prairie State, should be aware of its median property tax rate. They must pay $2,165 per $100,000 of assessed home value.
According to the Tax Foundation, here in the Prairie State localities are able to add as much as 4.75 percent and this translates to an 8.8 percent rate of the average combined. Prescription drugs and groceries see a 1 percent sale tax imposed by the state.
However, things are not so pretty when it comes to clothing and motor vehicles, as they are fully taxed.
