Minnesota has made it into the Top 10 least tax-friendly states, according to Kiplinger’s state-by-state comprehensive guide to state tax policies across the United States.
California leads the list of 10 as the least tax-friendly state, followed by Connecticut, New Jersey, New York, Hawaii, Rhode Island, Maine, and coming in at No. 8 – the Gopher state – followed by Vermont, and Illinois.
So how did Minnesota’s neighbors do? North and South Dakota are tax-friendly. Iowa and Wisconsin received mixed reviews.
Which states are the most tax friendly? Nevada, Wyoming, Arizona, New Mexico, Louisiana, Mississippi, Alabama, South Carolina, West Virginia and Delaware.
Back to the least tax-friendly designees, Minnesota and the rest of the money-grabbing states, Minnesota’s “recently added a new top income tax rate and bracket for residents with high incomes. And midyear 2013, the state enacted a gift tax of 10 percent. Rental-car taxes, even exclusive of concession fees added by localities, are also high,” Kiplinger noted.
A sales tax of 6.875 percent is stiff. Food, clothing, and prescription and nonprescription drugs are exempt. A few cities and counties also add a sales tax,” said the report.
Other taxes, such as gas/diesel, property, vehicle, sin, travel, inheritance and estate, and of course the ‘oddball’ tax (The champagne lifestyle will cost you in Minnesota.) Bubbly is taxed six times as much as regular wine, even if the alcohol content is the same.
Apparently, this is a badge worn proudly by the state’s legislative majority and its governor. However, ranking among the most highly taxed states in the U.S. makes it difficult for its citizens to survive, considering the harsh winters the state’s residents endure, piling up high heating bills from October through March.