The Tax Foundation recently released their state & local tax burdens report for FY 2012.
Among its findings:
- During the 2012 fiscal year, state-local tax burdens as a share of state incomes decreased on average across the U.S.
- Average income increased at a faster rate than tax collections, driving down state-local tax burdens on average.
- On average, taxpayers pay the most in taxes to their own state and local governments.
- In 2012, 78 percent of taxes collected were paid within the state of residence, up from 73 percent in 2011.
“A state’s tax burden is the portion of total state income that goes to state and local taxes. But it’s important to remember that as taxpayers, we not only pay state and local taxes to our own places of residence, but also to the governments of states and localities in which we do not live.”