In list of the best states to pay taxes, Minnesota comes 33rd - Bring Me The News

In list of the best states to pay taxes, Minnesota comes 33rd


This embed is invalid

Death and taxes are life's two certainties, and Minnesotans pay a little more of the latter.

The latest annual survey by WalletHub ranking each state based on how much state and local taxes its residents has to pay has Minnesota in 33rd place.

It found that Minnesotan households pay on average $6,140 in state and local taxes every year, which is 9 percent above the national average.

Considering the average U.S. household forks over $17,000 in federal taxes as well, this is a hefty outlay for Minnesotans (though not as bad as bottom-ranked Illinois, where households pay $7,719 in extra taxes.)

Sales tax accounts for the largest amount handed over the state coffers, with Minnesotans paying $2,212 on average a year, following by property taxes ($2,086), income tax ($1,546) and vehicle excise ($296).

While taxes are higher than average in Minnesota, another study by WalletHub last year finds that it pays for the best government services in the country.

WalletHub found that Minnesota ranked 17th on its best taxpayer ROI (return on investment) table, which declared Minnesota's government services to be number 1 in the United States.

Two years ago, Governor Mark Dayton and his cabinet raised taxes on Minnesota's higher earners (individuals earning over $150,000, couples earning $250,000), which had prompted fears that it would lead to richer residents fleeing the state.

But MPR reported in February that this hasn't materialized, with 6,230 more people filing in the top income tax bracket than expected in 2013.

Alaska has the cheapest taxes in the WalletHub rankings, with households paying just $2,993 a year on average.

Next Up