How Tax-Friendly is Florida
How ‘Tax-Friendly’ Is Fla. Compared to Other States? A MoneyGeek study including IRS, state, property and sales taxes listed Fla. as the No. 4 least-expensive tax state. Total tax costs are about 5.6% of total income.
TAMPA, Fla. – It’s tax filing season and depending on where you live in the U.S., you could be forking over a very different-sized chunk of your income.
An analysis by MoneyGeek ranked every state by how “tax-friendly” it is. The analysts didn’t just look at income tax – they also factored in property taxes, plus state and local sales taxes.
To determine where people pay the highest tax burden, MoneyGeek looked at a hypothetical average family: a married couple with one kid, earning the median national income of $82,852, owning a $349,400 home. The study breaks down how much this fictional family would pay in taxes in every state.
The states with the lowest tax burden, according to the analysis, were:
1. Wyoming (estimated taxes: 4% of income or $3,279)
2. Nevada (estimated taxes: 4.7% of income or $3,879)
3. Alaska (estimated taxes: 5.4% of income or $4,507)
4. Florida (estimated taxes: 5.6% of income or $4,632)
5. Tennessee (estimated taxes: 6.5% of income or $5,377)
6. Washington (estimated taxes: 6.5% of income or $5,414)
7. North Dakota (estimated taxes: 6.7% of income or $5,556)
8. Arizona (estimated taxes: 6.8% of income or $5,665)
9. South Dakota (estimated taxes: 7.2% of income or $5,938)
10. Delaware (estimated taxes: 7.3% of income or $6,074)
The states with the highest tax burden were:
1. Illinois (estimated taxes: 16.8% of income or $13,894)
2. Connecticut (estimated taxes: 15.1% of income or $12,545)
3. New Jersey (estimated taxes: 14.3% of income or $11,872)
4. New Hampshire (estimated taxes: 14.1% of income or $11,694)
5. New York (estimated taxes: 13.9% of income or $11,495)
6. Iowa (estimated taxes: 13.8% of income or $11,398)
7. Wisconsin (estimated taxes: 13.2% of income or $10,976)
8. Vermont (estimated taxes: 12.6% of income or $10,453)
9. Nebraska (estimated taxes: 12.6% of income or $10,446)
10. Michigan (estimated taxes: 12.4% of income or $10,239)
Based on its analysis, MoneyGeek also gave every state a letter grade on its “tax friendliness.” The states with A grades have the lowest tax burden on an “average” family, while the states with D or E grades have the highest tax burden.
MoneyGeek’s estimates only hold true for that hypothetical family,earning about $82,000 a year with a $349,000 house. A family who just bought a $1 million house in California would probably be paying a lot more in taxes, while a single person earning $40,000 in Texas would be paying less.
© 1998-2022 WFLA, Nexstar Broadcasting, Inc.
Southwest Florida Real Estate Market Update
Buyer demand continues to be strong, inventory remains low, and sales prices continue to increase. January’s active listings in Lee County were down 31.1% compared to last year in January, giving us only a 1-month supply of inventory, while January’s Median Sales Price for Single Family Homes in Lee County was up 26.4%.
During the 3rd week of each month, the Florida Association of Realtors releases the official numbers from the prior month’s activity. Below are some of January’s numbers, for your reference. If you are interested in learning more about market activity in a specific neighborhood, development, city, or zip code, please let me know. I would be happy to provide you with a customized market analysis.
Lee County Single Family Home Sales – January 2022
Closed Sales 1,099 (Jan 2022) 1,224 (Jan 2021) -10.2%
Median Price $413,500 (Jan 2022) $327,250 (Jan 2021) +26.4%
Average Price $574,393 (Jan 2022) $489,738 (Jan 2021) +17.3%
Active Listings 1,517 (Jan 2022) 2,203 (Jan 2021) -31.1%
(Source Florida Association of Realtors, Data released February 21, 2022)
If you are looking to sell your home quickly and on the best possible terms, now is the time. Let’s connect to discuss how you can secure a speedy, top-dollar sale of your home, and net you more proceeds.
Although we are in a great Seller’s market, I don’t cut corners. My marketing plan and strategy to sell your home is solid. I’ll help you make a knowledgeable real estate decision you will feel good about, and I will make the process as easy as possible for you. Call me at 239-699-3498 or email me at sue.jones@C21.com.
QUESTIONS? I am always available to answer your questions and help you with all of your Real Estate needs. I have Real Estate contacts all over the world. Please don’t hesitate to call me if there is anything I can do for you or someone you know.
Sue Jones | Realtor®
3409 Del Prado Blvd S #103,
Cape Coral, FL 33904