Most & Least Taxing States 2013

By Rebecca Helmes of Bloomberg BNA - 2013-04-19T17:41:14Z

Photograph by Daniel Acker/Bloomberg

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Connecticut

Top income tax rate: 6.7%
Sales tax: 6.35%
Property tax per capita: $2,522
Estate tax: 7.2% to 12% with a $2 million exemption*

High taxes are paired with the nation’s highest income per capita -- $57,902 in 2011, according to the Bureau of Economic Analysis. Drivers pay two gas taxes -- an excise tax of 25 cents per gallon, plus a 7.53 percent "gross receipts tax" on petroleum products. That tax is akin to a sales tax but charged at the wholesale level and passed on to consumers. In 2012, Governor Dannel Malloy signed a law capping the tax when wholesale prices reach $3 a gallon.

Connecticut recently landed a $50 million Amazon distribution center and, beginning in November, expects to bring in $15 million per year from Amazon’s collection of state sales tax. Connecticut taxes Social Security income; a full exemption applies to income for single filers with annual income less than $50,000 or joint filers with annual income below $60,000.

*In general, estate taxes are based on value of the deceased's estate. Liability for the tax is triggered if the estate's value exceeds a threshold set by the state.

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