If you're dreading filing your taxes, no less paying the bill, take heart — Colorado state and local taxes are among the leanest in the nation, according to a new report.
Colorado ranks ninth nationally for lowest of local and state tax rates in relation to income, with one being the lowest and 25 being average, according to a report released this week by the financial website WalletHub.
The report "calculated relative income-tax obligations by applying the effective income-tax rates in each state and locality to the average American’s income," according to Wallet Hub, which took a look at all 50 states as well as Washington, D.C.
Colorado's state and local taxes consume nearly 9 percent of the median U.S. household income, compared to nearly 6 percent in Alaska, which ranked lowest in overall effective local and state tax rates, and nearly 15 percent in Illinois, which ranked highest.
State and local taxes come in at nearly 20 percent lower than the state and national average, according to the study, compared with 47 percent lower than the national average in Alaska and nearly 39 percent higher than the national average in Illinois.
Other findings specific to Colorado:
- The state ranks fifth when it comes to lowest real-estate tax.
- The state ranks 18th when it comes to lowest income tax.
- The state ranks 21st when it comes to lowest sales and excise tax.
- The state ranks 39th when it comes to lowest vehicle property tax.
WalletHub also surveyed 600 people on taxes. Twenty-four percent said they'd rather get an "IRS" tattoo than deal with taxes, and 16 percent said they'd rather stop talking for six months.