MINNEAPOLIS (WCCO) — A recent listing has ranked Minnesota as the least tax-friendly state in the United States.
On Thursday, finance website Kiplinger released its rankings of the best and worst states for taxes.READ MORE: For 1 Month, State Accepting Applications For $110M In Struggling Homeowner Assistance
According to its 2018 Kiplinger Tax Map, the most tax-friendly states, from No. 1 to No. 10, include Alaska, Wyoming, South Dakota, Florida, Nevada, North Dakota, Delaware, Arizona, Mississippi and Louisiana.
As for the 10 least tax-friendly states, Minnesota tops the list. Following Minnesota is Maryland, New York, Illinois, Maine, Vermont, Hawaii, California, New Jersey and Connecticut.
As for Minnesota, Kiplinger says the state hits hard with its income tax.READ MORE: California Man Charged In Hopkins Apartment Shooting
“It added a new top income tax rate of 9.85% in 2013. But what makes Minnesota really stand out is that its lowest income tax rate is 5.35%,” the finance website said.
Kiplinger says the federal tax overhaul could make things worse in Minnesota, too.
“Minnesota uses federal taxable income as the starting point for calculating state taxes. An estimated 300,000 Minnesotans will pay higher state taxes due to the loss of personal and dependent exemptions on their federal tax returns,” Kiplinger said.
For more on the list, click here.MORE NEWS: Jaleel Stallings To Receive $1.5M Settlement From Minneapolis
“It’s important that Americans don’t overlook the impact of state and local taxes on their bottom line. Kiplinger.com’s Tax Map shows that tax rates literally are all over the map—and the difference between living in a high-tax or a low-tax state can be thousands of dollars each year,” said Robert Long, general manager of Kiplinger.com. “And the tax burden in many states will be even greater this year as lawmakers wrestle with how to adjust their tax codes to reflect the federal tax overhaul.”