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Tax day: 10 states that have increased taxes the most in last four decades

The Lansing Journal has partnered with Stacker.com to provide in-depth features that may be of interest to our readers.

By Dom DiFurio
Depending on where you live in the U.S., your state and local taxes may have shifted over the last year.
 
The feared decline in American spending at the onset of the COVID-19 pandemic never fully materialized as stimulus and pandemic aid programs kept consumers buying and sending sales taxes into state and local government coffers.
 
But while the stimulus-fueled spending spree alleviated concerns about bringing in tax revenue for critical functions in local government, it also helped spur record inflation. Some states are adjusting taxes in response: Utah, for example, moved to reduce individual and corporate income tax rates for 2022.
 
Stacker examined data from the nonprofit Tax Foundation to see which states have recorded the biggest tax growth in the last four decades. States were ranked by the percentage-point change of each state’s effective tax rate from 1980 to 2022. Ties were broken by the growth from 2021. The overall per capita burden was used if those numbers were the same.
 
Effective tax rates were calculated by dividing the state and local taxes residents pay by the state’s share of the gross national product. Those taxes include property, sales, income, and other taxes recorded by the Census Bureau’s State and Local Government Finance division.
 
In 2022, the national average state-local tax burden is 11.2%, unchanged from the year before. “Tax burden” is a term used to describe the effective amount of taxes each person in a state pays its government. “State-local” refers to a combination of state and local tax rates, excluding federal taxes. It can account for income and the portion of corporate taxes shifted to consumers via increased costs or lower wages.

Top 10 tax increases since 1980

Wichita, Kansas.
Canva

#10. Kansas

– Change from 1980: +1.6 percentage points
– Change from 2021: +0.1 percentage points
– State-local effective tax rate 2022: 11.2%
– State-local tax burden per capita: $6,353

An aerial View of Carson City, Nevada.
Jacob Boomsma, Shutterstock

#9. Nevada

– Change from 1980: +1.8 percentage points
– Change from 2021: -0.3 percentage points
– State-local effective tax rate 2022: 9.6%
– State-local tax burden per capita: $5,554

An aerial view of downtown Wilmington, Delaware.
Real Window Creative, Shutterstock

#8. Delaware

– Change from 1980: +2.1 percentage points
– Change from 2021: +0.2 percentage points
– State-local effective tax rate 2022: 12.4%
– State-local tax burden per capita: $7,170

The San Diego skyline, as viewed from Point Loma Island, California.
Rigucci, Shutterstock

#7. California

– Change from 1980: +2.1 percentage points
– Change from 2021: +0.2 percentage points
– State-local effective tax rate 2022: 13.5%
– State-local tax burden per capita: $10,167

The skyline of Richmond, Virginia.
Canva

#6. Virginia

– Change from 1980: +2.1 percentage points
– Change from 2021: +0.1 percentage points
– State-local effective tax rate 2022: 12.5%
– State-local tax burden per capita: $7,979

Skyscrapers and Lake Michigan in Chicago.
DiegoMariottini, Shutterstock

#5. Illinois

– Change from 1980: +2.3 percentage points
– Change from 2021: 0.0 percentage points
– State-local effective tax rate 2022: 12.9%
– State-local tax burden per capita: $8,390

A cityscape view of Lower Manhattan in New York.
GagliardiPhotography, Shutterstock

#4. New York

– Change from 1980: +2.7 percentage points
– Change from 2021: +0.7 percentage points
– State-local effective tax rate 2022: 15.9%
– State-local tax burden per capita: $12,083

Montpelier, Vermont, in autumn.
Sean Pavone, Shutterstock

#3. Vermont

– Change from 1980: +2.8 percentage points
– Change from 2021: +0.2 percentage points
– State-local effective tax rate 2022: 13.6%
– State-local tax burden per capita: $7,958

Honolulu.
Canva

#2. Hawaii

– Change from 1980: +3.1 percentage points
– Change from 2021: +0.2 percentage points
– State-local effective tax rate 2022: 14.1%
– State-local tax burden per capita: $8,410

A sailboat moored in front of a luxury waterfront estate in Greenwich, Connecticut.
James Kirkikis, Shutterstock

#1. Connecticut

– Change from 1980: +4.9 percentage points
– Change from 2021: +0.7 percentage points
– State-local effective tax rate 2022: 15.4%
– State-local tax burden per capita: $12,151

Stacker
Stacker
The Lansing Journal has partnered with Stacker.com to provide in-depth features that may be of interest to our readers. Stacker says, "We exist to empower the world's publishers by advancing new models for journalism."