Study claims Delaware has nation’s lowest tax burden
As the deadline approaches for filing income tax returns in Delaware, financial information firm WalletHub ranks the state as 50th in total tax burden.
While federal income taxes are due on Monday, Delaware gives taxpayers until the end of the month to file returns.
Delaware’s bottom-most ranking was aided by the lack of a sales tax and low property taxes. Delaware also relies on incorporation fees.
Alaska, with its oil revenues that go to residents ranked 49th, with Tennessee at 48th.
Among neighboring states, New Jersey ranked 7th, Maryland 12th and Pennsylvania 24th. New York ranked in first place.
The total tax burden in Delaware of less than 6 percent may raise some eyebrows, given the fact that the state’s top income tax rate of more than 6 percent starts at $60,000. However, the top income figure is reduced by deductions. For retirees, Social Security income is not taxed.
According to WalletHub the tax burden measures the exact proportion of total personal income that residents pay toward state and local taxes.
The WalletHub ranking stands in contrast to the better known Tax Freedom Day report from the Tax Foundation. Delaware ranks in the middle of the pack in that ranking that calculates the number of days it takes to pay taxes.
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