(Reprinted from the June 4, 2006, NH Union Leader) : return to Real Estate for Sale NH pays least income to taxes in U.S. By GARRY RAYNO - Union Leader staff
New Hampshire residents pay less of their income in state and local taxes than in any other state in the country, according to data compiled from U.S. Census Bureau information. Using 2004 data, the rankings are obtained by comparing the total amount of personal income earned by state residents with the total amount of taxes raised by state and local governments. Per economist Dennis Delay who compiled the figures: "New Hampshire again has the lowest tax burden in the country even with property taxes and statewide property taxes. That's good news for the state". According to the figures, New Hampshire residents pay 12.3 percent of their personal income in taxes, while the national average is 15.1 percent. The next lowest state is Tennessee, where residents pay 12.6 percent of their income in taxes. New Hampshire and Tennessee are the only two states where residents pay under 13 percent of their income in taxes. Alaska residents pay the highest percentage of income in taxes at 27.3 percent, followed by Wyoming at 21.3 percent. In New England, Connecticut residents pay the next least percentage of income for taxes at 13.5 percent ranking it 47th, while Massachusetts residents pay 13.7 percent, ranking 44th. Maine residents pay the highest percentage of their income in taxes at 17.3 percent, ranking it 8th, while Vermonters pay 16.2 percent in taxes, ranking it 12th. Rhode Island is in the middle of the pack at 15.3 percent, ranking it 27th. Delay said New Hampshire has had the lowest tax burden for several years in a row. He said the ranking is good news for both the residents of the state and for the businesses. "It's also an indication the state is very frugal and tries to do a lot without the same resources other states have for revenue," Delay said. The figures cannot be compiled as timely as he would like, he said, but the information on local taxes was only released Wednesday.
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