Kiplinger and the Tax Foundation have ranked Delaware as one of the most tax friendly states. for consumers.
Click here for more information on the Kiplinger ranking.
The First State was ranked seventh from the top by Kiplinger, thanks to low property and fuel taxes and no sales tax. The Tax Foundation ranked Delaware 11thoverall. Click here for the Tax Foundation ranking.
Ranking first on the report was Alaska, which subsidies state operations with taxes on its oil industry. Delaware neighbors New Jersey and Maryland ranking among the least tax-friendly states, according to Kiplinger.
Kiplinger did note that “Delaware’s income tax rate escalates quickly, with the Tax Foundation, putting the sate in the top 10 ranking of the highest state income taxes.
Residents with taxable income of $60,000 or more (both single and joint filers) pay the top rate of 6.6 percent, and the capital city of Wilmington imposes its own wage tax of 1.25 percent.
Conservatives have pressed for a lower income tax rate, while progressives have pushed for higher rates for those in the top tier in income. Neither side has prevailed.
The income tax, incorporation fees and a gross receipts taxes companies pay on total sales help Delaware maintain lower taxes in other areas.
The Tax Foundation ranked Delaware at the bottom in its corporate tax climate, while staying in 11thplace overall.
There have been predictions that state spending on health care for state employees and people on Medicaid has reached a point that the state will have to consider spending cuts or raising taxes.