The Tax Foundation is a Washington-D.C.-based tax research organization founded in 1937.
The organization’s stated mission is to “educate taxpayers about sound tax policy and the size of the tax burden borne by Americans at all levels of government.”
The group is most famous for its annual calculation of Tax Freedom Day, which it has produced since the early 1970s.
Tax Freedom Day is the day each year you’d have to work until, hypothetically, in order to pay your annual tax bill (federal, state, and local income taxes).
So, how does good ol’ Taxachusetts come out on the whole tax burden issue?
Not too shabby, surprisingly.
We start out looking bad:
In 2006, Massachusetts taxpayers had to work until May 2nd to pay their total tax bill, ranking the state 6th highest nationally. That’s six days after national Tax Freedom Day (April 26th).
But, part of the reason for this is that taxpayers in Massachusetts have (relatively) high incomes, and the regressive federal tax code takes a higher percentage of these workers’ income.
Here’s the good part:
Between 1970 and 1998, Massachusetts’ state and local tax burden was generally well above the national average. Since then, it has fallen considerably. Estimated at 10.3% of income, Massachusetts’ state/local tax burden percentage ranks 28th nationally, below the national average of 10.6%. Massachusetts taxpayers pay $5,047, per-capita in state and local taxes.
Again, we are (barely) below the national average, and in the lower half of states.
But, as you may have suspected:
Massachusetts’ local property taxes are 6th highest in the nation by the per capita measure and 11th highest as a percentage of income.
(Property taxes are not included in their analysis total income tax burden, of course.)
Pretty interesting data.
More information: The Facts on Massachusetts’ Tax Climate – The Tax Foundation
Original source: Save Money by Researching The Tax Climate Before Moving – By Tara Siegel Bernard, The Wall Street Journal
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Updated: January 2018
