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November 1, 2011

Report: Mass. Has 33rd Lowest Taxes In U.S.

Massachusetts residents paid 9.8 percent of their income in state and local taxes in fiscal year 2009, according to U.S. Census data analyzed by the Massachusetts Budget and Policy Center.

That gives the Bay State lower tax rates than those of 32 other states.

The national average for the percentage of income paid to state and local taxes is 10.44 percent.

Since 2009 the state has increased the sales tax to 6.25 percent from 5 percent, but many other states have also increased individual taxes, so the center estimates Massachusetts tax rates are still likely in the bottom half among tax rates in the 50 states.

The top states for state and local taxes as a percent of income in 2009 were Arkansas, Wyoming and New York, while South Dakota, Tennessee and Alabama had the lowest rates.

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