Delaware Ranks No.1 in Tax-friendliness Report

According to Doug Rainey,  “In its first ranking of tax climate the consumer newsletter and online publisher put Delaware on top of the list. The state typically finishes higher, due to the lack of a sales tax and low property taxes.”

Delaware Ranks No.1 in Tax-friendliness Report

The media company Kiplinger Thursday launched a state-by-state Tax Map, giving online users a guide to state tax policies across the U.S. The tax map offers information  on a range of taxes—including income tax, sales tax, gas tax, and “sin” taxes on products such as alcohol and tobacco.

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“This confirms what we have known all along. Delaware is the best place to live, work and play, and do it all for less money,” said Alan Levin, director of the Delaware Economic Development Office.

The ranking is good news for the state, which took a hit from a Moody’s Analytics report ranking it as only state in danger of falling into a recession. Other economists have disagreed with the finding, but point to slow economic growth as a big negative for the First State.

The rankings are as follows:

Most tax-friendly

1.    Delaware

2.    Wyoming

3.    Louisiana

4.    Mississippi

5.    Arizona

6.    Alabama

7.    Nevada

8.    South Carolina

9.    New Mexico

10.  West Virginia

 

The least tax-friendly states were:

1.    California

2.    Connecticut

3.    New Jersey

4.    New York

5.    Hawaii

6.    Rhode Island

7.    Maine

8.    Minnesota

9.    Vermont

10.  Illinois

“This is the first time that Kiplinger’s has created such a consolidated online guide to taxes across the United States,” said Robert Long, managing editor of Kiplinger.com. “It’s important for users to understand not only the differences in taxation by state, but also the tradeoffs associated with those policies. For example, states with lower tax revenues may not spend as much on critical services that residents might benefit from in other states.”

The new Tax Map is a sister project to Kiplinger’s  Retiree Tax Map which calculates income taxes on investment income, retirement-plan distributions and Social Security benefits, plus a rundown of sales taxes, property taxes, and estate and inheritance taxes. Many states finishing low in the retiree category also ranked low in the overall tax study. Delaware ranks in the top 10 in the retirement map.

You can visit the tax map at http://www.kiplinger.com/tool/taxes/T055-S001-kiplinger-tax-map/index.php. Web visitors will find additional features, including slide shows of the 10 most tax-friendly states and 10 least tax-friendly states

as well as states with high and low tax burdens in sales tax and other territories.

Delaware, thanks to the lack of a sales tax, often ranks low on tax rankings. However, business people point to the gross receipts tax as a factor that holds back the economy, since it is a corporate sales tax.The tax does have exemptions for the smallest businesses.

- See more at: http://delawarebusinessdaily.com/2013/10/26503/#sthash.zLnoO7FK.dpuf