Know The Truth: Texas Is A Top 10 State For Taxes

Texas residents may not know that we're in the Top 10 for most taxed states.

Texas Businesses May Not Be Paying Their Fair Share

So many businesses have moved to Texas, I've always assumed it was due to the fact that we have no state income tax, low tax rates, or something along those lines. I guess some of those things may come into play for businesses, but as far as Texans go, we're paying in saddlebags full of money.

Texas Taxes A Lot

A recent Wallethub survey looked at the tax burden of every state in the U.S. (plus the District Of Columbia), and Texas came in 10th for taxes paid by the median household. Again, it's hard to argue with Wallethub's methodology and I've never seen any evidence of an agenda. They put together facts and hard numbers. In this case, the metrics show Texans paying an effective tax rate of 12.54%.

Other Big Losers

So who is paying higher taxes than Texas? The rest of the top 10 is filled out with Ohio, Iowa, Nebraska, Kansas, Pennsylvania,  New Jersey,  Connecticut, New York, and Illinois. Did anyone else notice who was missing there? At least according to these metrics, California was actually in the bottom 15 of the top 51 with an effective tax rate of 9.70%.

The Texas Switcheroo

Texas takes great pride in not having a state income tax. That is a bit of shell game. You may not have to fill out paperwork on your personal income for the State each year, but  Texas has found other ways to tax the heck out of the average Joe.  The numbers behind the headlines don't lie.