Colorado Politics

Report: Coloradans have one of lowest tax burdens in nation

Colorado has on average the ninth-lowest tax burden in the nation, according to a new survey from the personal finance company WalletHub.

Alaska ranked as the least tax-burdened state, while Illinois had the highest average tax payments. In Colorado, annual state and local taxes for the median household amounted to $6,289, a 20% difference between Colorado households and the median nationally.

“Taxpayers in the most tax-expensive states,” the company wrote, “pay three times more than those in the cheapest states.” A 2016 report from the Tax Foundation confirmed Colorado’s status near the top of the list, but the think tank noted that these rankings do not show the benefits taxpayers in different states receive for their tax money.

WalletHub used median home prices and median real estate taxes paid to calculate real estate tax prices for each state. The company based vehicle taxes on the tax value in each state for a Toyota Camry LE; income taxes on the third quintile of income at $60,602; and also derived measurements from states’ sales and excise taxes based on average spending levels for a household earning third quintile income.

In a separate online survey of 900 Americans, 34% of people responded to WalletHub that charities would make the best use of their tax dollars. Local government ranked a close second in trust (for 31% of respondents), and only 14% of those surveyed believed that the federal government used their money the wisest.

Tax planning concept 2020 for business, finance, banking, budgeting, economic topics.
(Photo by Elena Semenova, iStock)
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