States that collect the most income taxes
State and local tax (SALT) obligations have become a key focus for some wealthier Americans, since deductions were capped at $10,000 under the Tax Cuts and Jobs Act.
However, these taxes vary meaningfully across the U.S. For example, states like Florida and Texas charge no state income tax, while states like California have high individual rates.
That’s why there is an ongoing exodus of taxpayers from high-tax states like New York and California to states like Florida, where they can potentially shave thousands off of their tax bills.
As previously reported by FOX Business, people with incomes of $650,000 can save nearly $70,000 per year by moving from New York to Florida.
While state and local taxes are made up of more than just income taxes – including things like property and sales taxes – individual income taxes make up a large share of SALT collections (23.6 percent), according to the Tax Foundation.
On average, state and local governments collect $1,164 per person in individual income taxes alone.
Here’s a look at how much your state collects in income taxes, as compiled by the Tax Foundation using data from fiscal 2017.
New York
New York collected the most income tax per capita, at $2,929.
New York is one of the main states taxpayers are seeking to leave now that SALT deductions have been capped.
As previously reported by FOX Business, New York had the third largest outflows of any state in 2018 – at 452,580 people.
D.C.
Income taxes in Washington, D.C., ranked just below New York at $2,788.
During fiscal 2016, D.C. was also found to have the highest state and local tax collections per capita, at $10,841.
Maryland
The state with the second-highest income collection was Maryland – at $2,276 per capita.
Maryland, however, has relatively low property tax collections compared to some of the other states on the list, at $1,547 per capita.
Massachusetts
State income tax collections per capita in Massachusetts are about $2,115, researchers found.
When it comes to overall state and local tax collections, Maryland fell to a slightly lower fifth spot.
Connecticut
Connecticut collects $2,106 in per capita state income taxes.
In terms of overall state and local tax collections per capita, it ranked even higher – at number 2. Per capita collections as of fiscal 2016 were $7,220.
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California
Like New York, Californians are also seeking to establish a domicile elsewhere as a result of the changes to state and local tax deductions.
Experts have told FOX Business that Nevada and Texas are popular destinations for taxpayers leaving the Golden State.
Unsurprisingly, it ranks high on the income tax collections per capita list – at $2,055.