taxes

5 States Where Taxes Are Rising

Taxes are going up in 2017 on residents of these states.

The buzz in the nation’s capital is about cutting taxes, but talk in many state capitals is focused on raising taxes to fund projects and close budget gaps. We found five states where taxes are going up in 2017.

Already among the 10 least tax-friendly states in the U.S. in our 2016 rankings, Maine upped the ante by imposing higher income taxes on top earners in 2017. The surcharge will raise an estimated $142 million in the first year.

Yet another of the 10 least tax-friendly states, New Jersey has already raised its levy on gasoline from 14.5 cents a gallon to 37.5 cents. The extra money will be used to fix roads and bridges.

California ranked as the very worst state for taxes last year. This year, higher taxes on smokers that go into effect in April 2017 will add a projected $1.4 billion to state coffers.

Pennsylvania fell in the middle of our 2016 tax rankings. But the state could slip in 2017 due to a tax hike on cigarettes that extends to e-cigarettes and smokeless tobacco. Pennsylvania also scrapped its tax exemption on lottery winnings.

Ranking as one of the 10 best states for taxes in 2016, Louisiana’s tax-friendly reputation might be in jeopardy. The state sales tax rose a percentage point to 5%, boosting the average combined state and local sales tax rate to 9.99%, the highest in the U.S.

Learn more about the five states where taxes are going up in 2017.

Most Popular

The Perfect Storm for Retirees
retirement planning

The Perfect Storm for Retirees

Today’s retirees could face a perfect storm because they are living longer and spending more time in retirement, while at the same time losing access …
April 18, 2021
The Wrong Way to Achieve Wealth
personal finance

The Wrong Way to Achieve Wealth

For some down-to-earth, basic advice on money and life, I have a book to recommend: “Your Total Wealth: The Heart and Soul of Financial Literacy.”
April 17, 2021
Child Tax Credit 2021: Who Gets $3,600? Will I Get Monthly Payments? And Other FAQs
Coronavirus and Your Money

Child Tax Credit 2021: Who Gets $3,600? Will I Get Monthly Payments? And Other FAQs

People have lots of questions about the new $3,000 or $3,600 child tax credit and the advance payments that the IRS will send to most families in 2021…
April 14, 2021

Recommended

Taxes on Unemployment Benefits: A State-by-State Guide
state tax

Taxes on Unemployment Benefits: A State-by-State Guide

Don't be surprised by an unexpected state tax bill on your unemployment benefits. Know where unemployment compensation is taxable and where it isn't.
April 20, 2021
Own Company Stock Within Your 401(k)? That Could Mean a Tax Advantage
Employee Benefits

Own Company Stock Within Your 401(k)? That Could Mean a Tax Advantage

Net unrealized appreciation (NUA) can be a great deal for those who qualify. Here’s a look at how it works and what type of tax savings it can deliver…
April 20, 2021
Taxes Aren't Due Yet, But You Might Want to File Now Anyway
tax deadline

Taxes Aren't Due Yet, But You Might Want to File Now Anyway

Even though this year's tax deadline has been extended, there are still plenty of good reasons to file your taxes now.
April 16, 2021
Tax Day 2021: When's the Last Day to File Taxes?
tax deadline

Tax Day 2021: When's the Last Day to File Taxes?

The IRS pushed Tax Day back again this year because of the pandemic. You now have an extra month to file your 2020 federal tax return.
April 15, 2021