10. Kansas
It’s no wonder that Kansas has the 9th highest rate in the country when it comes to sales tax rates. State and local rates combined come up to 8.67%, one of the main reasons why the Sunflower State made it on this list.
Here, state income taxes come up to 3.1% on taxable income of $15,000 or less for single filers; $30,000 or less for joint filers and 5.7% on taxable income over $30,000 for single filers; over $60,000 for joint filers. The effective income tax rates are 4.04% for single filers or 5.04% for joint filers.
You might not think these numbers aren’t very high and that much is true, they aren’t crippling. But what pushes a lot of households over the edge is the fact that 500 school districts have also imposed a local tax on interest and dividends which range from 0.125% to 2.50%.
Kansas also boasts the 15th highest rates in the country for property taxes- $1,491 per $100,000 in home value. Say you want to move there with your family and have your eyes set on a $400,000 home, then you should prepare yourselves to pay up $5,963 in property taxes each year.
Is it all bad news? No, of course not. Beer taxes are 18 cents per gallon while state gas taxes are 24.03 cents per gallon, so Kansas residents can at least boast about being under the national average in those two categories. In addition to that, they don’t have to worry about estate or inheritance taxes either!
9. Iowa
Welcome to Iowa, where income and property taxes are above average but hey! There’s plenty of corn to go around!
Similarly to Kansas, income taxes are particularly high due to the fact that more than 200 school districts and Appanoose County add their own. Basically, the state’s income taxes sit at 0.33% on taxable income of $1,638 or less and 8.53% on taxable income over $73,710. Therefore the effective income tax is 4.43% for single filers; 7.03% for joint filers.
In regards to average property tax rates, Iowa is the 12th highest in the nation- $1,678 per $100,000 in home value. Get ready to pay $6,711 per year for a $400,000 tome in the Hawkeye State.
You’ll have to pay 6.82% in state and local sales taxes while the state gasoline tax rate is 30.5 cents per gallon. All in all not great but not amazing either.
Residents of Iowa also have to worry about inheritance taxes on estates worth at least $25,000. Though surviving spouses and other close relatives are exempt, the tax rates turn from 5% to 15%.
