In a new study, Minnesota ranked 5th highest in income taxes paid for middle income familes. According to the report of the Tax Foundation, the tope five states and the amount of income taxes paid by a middle income family were as follows: 1) New York at $1,864 per person; 2) Connecticut at $1,808; 3) Massachusetts at $1,765; 4) Oregon at 1,425; and 5) Minnesota at $1,404. The report also noted that Minnesota's corporate tax rate is the 3rd highest in the U.S.
The report also noted that their are currently seven states that levy no income tax at all: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming.
What the report did not mention is that Minnesota continues to have an estate tax that taxes all estates worth $1 million or more and that in July of last year, it became only the second state in the U.S. (along with Connecticut) to also have a gift tax. That is at a time when many other states have either gotten rid of their estate tax, like Indiana, or are considering getting rid of it, like Marlyand, in an attempt to bolster economic activity.
It should be noted that with proper planning, you can minimize the taxes you and your family pay. For more information on how you can minimize your taxes, give us a call today at 763-420-5087.