Working Paper No. 4: State-Local Tax Burden Methodology Released

April 17, 2007

Tax Foundation Working Paper No. 4: State-Local Tax Burden Methodology was posted today.

This paper walks readers through the methods used to calculate our widely cited state-local tax burdens. The state-local tax burdens are reported annually– this year in Special Report No. 153: State and Local Tax Burdens Hit 25-Year High.

The abstract of the working paper is as follows:

Each year the Tax Foundation releases state-local tax burdens for the residents of each state. The burdens are effective tax rates calculated by calculating total state-local level taxes paid by taxpayers in each state, then dividing by their income. The burdens also reflect the economic incidence of taxes that are commonly shifted to out-of-state taxpayers. This paper discussed how this analysis is conducted.

Read the full working paper here.


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