Today’s Monday Map looks at state income taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. collections per capita. New York State, with its high marginal tax rateThe marginal tax rate is the amount of additional tax paid for every additional dollar earned as income. The average tax rate is the total tax paid divided by total income earned. A 10 percent marginal tax rate means that 10 cents of every next dollar earned would be taken as tax. s and wealthy tax baseThe tax base is the total amount of income, property, assets, consumption, transactions, or other economic activity subject to taxation by a tax authority. A narrow tax base is non-neutral and inefficient. A broad tax base reduces tax administration costs and allows more revenue to be raised at lower rates. , collects the most – an average of $1,796 per resident. At the bottom of the list are seven states with no state income tax – Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.
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Previous Monday maps can be viewed at www.taxfoundation.org/maps.
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