The Best and Worst States To Be Rich in America
While money doesn’t solve every problem, having more of it certainly makes life easier. That is, until tax time. Depending on which state you live in, being rich means you’re paying a greater share of your income to the government and also in such things as property taxes.
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To find out which states are the best and the worst to be rich in America, GOBankingRates considered earners that fall into the fourth or fifth quintile of earners — the top 60%-100% of income earners. Using the U.S. Census American Community Survey, a number of factors were found for each state, including average income by quintile, median property tax paid and median home value. State income tax data was sourced from Tax Foundation’s State Income Tax Rates.
States that are friendlier to the rich included those without a state income tax, such as Nevada, Tennessee and Washington. States that were less friendly included Oregon, New Jersey and Illinois.
Read on to find out which states are best and worst to be rich in, ranked from worst to best.
Oregon
Average income for the rich: $188,090
Effective state income tax for single filers: 8.8%
Effective state income tax for married filers: 8.2%
Median property tax rate: 0.8%
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New Jersey
Average income for the rich: $248,938
Effective state income tax for single filers: 5.5%
Effective state income tax for married filers: 4.7%
Median property tax rate: 2.1%
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Illinois
Average income for the rich: $197,943
Effective state income tax for single filers: 5.0%
Effective state income tax for married filers: 5.0%
Median property tax rate: 2.1%
Connecticut
Average income for the rich: $241,120
Effective state income tax for single filers: 5.7%
Effective state income tax married filers: 5.2%
Median property tax rate: 1.8%
New York
Average income for the rich: $228,820
Effective state income tax for single filers: 5.6%
Effective state income tax for married filers: 5.1%
Median property tax rate: 1.6%
Vermont
Average income for the rich: $174,459
Effective state income tax for single filers: 5.9%
Effective state income tax for married filers: 4.8%
Median property tax rate: 1.6%
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Iowa
Average income for the rich: $166,465
Effective state income tax for single filers: 5.7%
Effective state income tax for married filers: 5.4%
Median property tax rate: 1.5%
Nebraska
Average income for the rich: $171,678
Effective state income tax for single filers: 5.8%
Effective state income tax for married filers: 4.9%
Median property tax rate: 1.5%
California
Average income for the rich: $246,928
Effective state income tax for single filers: 7.8%
Effective state income tax for married filers: 6.3%
Median property tax rate: 0.8%
Hawaii
Average income for the rich: $218,852
Effective state income tax for single filers: 8.3%
Effective state income tax for married filers: 7.4%
Median property tax rate: 0.3%
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Minnesota
Average income for the rich: $197,991
Effective state income tax for single filers: 6.6%
Effective state income tax for married filers: 5.5%
Median property tax rate: 1.0%
Kansas
Average income for the rich: $169,569
Effective state income tax for single filers: 5.3%
Effective state income tax for married filers: 4.9%
Median property tax rate: 1.4%
Maine
Average income for the rich: $169,612
Effective state income tax for single filers: 6.3%
Effective state income tax for married filers: 5.4%
Median property tax rate: 1.0%
Wisconsin
Average income for the rich: $169,036
Effective state income tax for single filers: 4.7%
Effective state income tax for married filers: 4.3%
Median property tax rate: 1.4%
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Montana
Average income for the rich: $164,826
Effective state income tax for single filers: 6.1%
Effective state income tax for married filers: 5.9%
Median property tax rate: 0.7%
Massachusetts
Average income for the rich: $251,957
Effective state income tax for single filers: 5.0%
Effective state income tax for married filers: 5.0%
Median property tax rate: 1.0%
Georgia
Average income for the rich: $183,571
Effective state income tax for single filers: 5.5%
Effective state income tax for married filers: 5.4%
Median property tax rate: 0.8%
South Carolina
Average income for the rich: $163,190
Effective state income tax for single filers: 6.1%
Effective state income tax for married filers: 6.1%
Median property tax rate: 0.5%
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Michigan
Average income for the rich: $168,107
Effective state income tax for single filers: 4.3%
Effective state income tax for married filers: 4.3%
Median property tax rate: 1.3%
West Virginia
Average income for the rich: $139,555
Effective state income tax for single filers: 5.7%
Effective state income tax for married filers: 5.7%
Median property tax rate: 0.7%
Maryland
Average income for the rich: $228,803
Effective state income tax for single filers: 5.0%
Effective state income tax for married filers: 4.8%
Median property tax rate: 1.0%
Virginia
Average income for the rich: $219,755
Effective state income tax for single filers: 5.4%
Effective state income tax for married filers: 5.2%
Median property tax rate: 0.8%
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Delaware
Average income for the rich: $187,458
Effective state income tax for single filers: 5.9%
Effective state income tax for married filers: 5.8%
Median property tax rate: 0.5%
Rhode Island
Average income for the rich: $196,784
Effective state income tax for single filers: 4.4%
Effective state income tax for married filers: 4.1%
Median property tax rate: 1.2%
Mississippi
Average income for the rich: $134,914
Effective state income tax for single filers: 4.5%
Effective state income tax for married filers: 4.5%
Median property tax rate: 0.9%
Oklahoma
Average income for the rich: $152,313
Effective state income tax for single filers: 4.4%
Effective state income tax for married filers: 4.1%
Median property tax rate: 1.0%
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Kentucky
Average income for the rich: $153,459
Effective state income tax for single filers: 4.4%
Effective state income tax for married filers: 4.3%
Median property tax rate: 0.9%
Pennsylvania
Average income for the rich: $184,790
Effective state income tax for single filers: 3.1%
Effective state income tax for married filers: 3.1%
Median property tax rate: 1.4%
Missouri
Average income for the rich: $161,909
Effective state income tax for single filers: 4.4%
Effective state income tax for married filers: 4.0%
Median property tax rate: 0.9%
Idaho
Average income for the rich: $167,807
Effective state income tax for single filers: 5.3%
Effective state income tax for married filers: 4.8%
Median property tax rate: 0.5%
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Arkansas
Average income for the rich: $142,137
Effective state income tax for single filers: 4.7%
Effective state income tax for married filers: 4.6%
Median property tax rate: 0.7%
Ohio
Average income for the rich: $165,025
Effective state income tax for single filers: 3.0%
Effective state income tax for married filers: 3.0%
Median property tax rate: 1.4%
Utah
Average income for the rich: $199,574
Effective state income tax for single filers: 4.8%
Effective state income tax for married filers: 4.8%
Median property tax rate: 0.5%
New Mexico
Average income for the rich: $152,867
Effective state income tax for single filers: 4.3%
Effective state income tax for married filers: 3.7%
Median property tax rate: 0.8%
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North Carolina
Average income for the rich: $173,857
Effective state income tax for single filers: 4.4%
Effective state income tax for married filers: 4.1%
Median property tax rate: 0.7%
Alabama
Average income for the rich: $154,540
Effective state income tax for single filers: 4.9%
Effective state income tax for married filers: 4.7%
Median property tax rate: 0.4%
Louisiana
Average income for the rich: $148,927
Effective state income tax for single filers: 3.9%
Effective state income tax for married filers: 3.5%
Median property tax rate: 0.7%
Colorado
Average income for the rich: $215,298
Effective state income tax for single filers: 4.1%
Effective state income tax for married filers: 3.8%
Median property tax rate: 0.5%
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Indiana
Average income for the rich: $160,247
Effective state income tax for single filers: 3.2%
Effective state income tax for married filers: 3.2%
Median property tax rate: 0.7%
Texas
Average income for the rich: $188,281
Effective state income tax for single filers: 0.0%
Effective state income tax for married filers: 0.0%
Median property tax rate: 1.9%
North Dakota
Average income for the rich: $177,743
Effective state income tax for single filers: 1.7%
Effective state income tax for married filers: 1.4%
Median property tax rate: 1.1%
New Hampshire
Average income for the rich: $214,491
Effective state income tax for single filers: 0.0%
Effective state income tax for married filers: 0.0%
Median property tax rate: 1.7%
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Arizona
Average income for the rich: $184,483
Effective state income tax for single filers: 2.3%
Effective state income tax for married filers: 2.1%
Median property tax rate: 0.5%
Alaska
Average income for the rich: $192,000
Effective state income tax for single filers: 0.0%
Effective state income tax for married filers: 0.0%
Median property tax rate: 1.2%
South Dakota
Average income for the rich: $162,478
Effective state income tax for single filers: 0.0%
Effective state income tax for married filers: 0.0%
Median property tax rate: 1.1%
Florida
Average income for the rich: $184,869
Effective state income tax for single filers: 0.0%
Effective state income tax for married filers: 0.0%
Median property tax rate: 0.8%
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Washington
Average income for the rich: $231,100
Effective state income tax for single filers: 0.0%
Effective state income tax for married filers: 0.0%
Median property tax rate: 0.8%
Wyoming
Average income for the rich: $160,761
Effective state income tax for single filers: 0.0%
Effective state income tax for married filers: 0.0%
Median property tax rate: 0.6%
Tennessee
Average income for the rich: $164,299
Effective state income tax for single filers: 0.0%
Effective state income tax for married filers: 0.0%
Median property tax rate: 0.5%
Nevada
Average income for the rich: $179,414
Effective state income tax for single filers: 0.0%
Effective state income tax for married filers: 0.0%
Median property tax rate: 0.4%
Methodology: For this study, GOBankingRates analyzed each state to find out which state is the best and the worst for residents who are considered rich. For this study, “rich” is considered earners that fall into the fourth or fifth quintile of earners: the top 60%-100% of income earners. Using the U.S. Census American Community Survey, a number of factors were found for each state, including average income by quintile, median property tax paid and median home value. State income tax data was sourced from Tax Foundation’s State Income Tax Rates, and using the tax rates, the effective and marginal tax rates can be calculated for single filers and married filers filling jointly. Each state’s property tax rate was calculated using the median home value and median property taxes paid. The effective tax rate for single filers was scored and weighted at 1.00, the married filers filling jointly effective tax rate was scored and weighted at 1.00, the property tax rate was scored and weighted at 1.00. All the scores were summed and sorted to find the best states and the worst states for rich residents. All data was collected on and is up to date as of April 23, 2024.
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This article originally appeared on GOBankingRates.com: The Best and Worst States To Be Rich in America
