Kiplinger’s: R.I. one of least tax-friendly states

RHODE ISLAND is one of the least tax-friendly states in the nation, ranking sixth, according to Kiplinger's. / COURTESY KIPLINGERS
RHODE ISLAND is one of the least tax-friendly states in the nation, ranking sixth, according to Kiplinger's. / COURTESY KIPLINGERS

PROVIDENCE – Rhode Island is one of the unfriendliest states when it comes to taxes, according to Kiplinger’s.
It’s the sixth-worst in the country, the finance newsletter said.
Kiplinger’s unveiled the data recently as part of its third annual tax map. The map compares income tax, sales tax, gas tax, “sin” tax (for products such as alcohol and tobacco) and other tax types, rules and exemptions in all 50 states.
The Ocean State scored low for its high state sales tax – 7 percent, gas tax of 34 cents per gallon and a median property tax of $3,872 on the state’s median home value of $232,300.
In comparison, Delaware, the most tax-friendly state, has no state sales tax, gas tax of 23 cents per gallon and a median property tax of $1,240 on the state’s median home value of $226,200.
Rhode Island also was rated as one of the worst states for retirees, as it taxes Social Security benefits, and “virtually all other sources of retirement income, including pension income.”

The comparison did not take into account changes in the state tax code passed this summer, including an exemption from state income tax Social Security benefits for single filers with federal adjusted gross income of up to $80,000 and for joint filers of up to $100,000.

Kiplinger’s noted some positives, such as Rhode Island dropping its top income tax rate to 5.99 from 9.9 percent, and changing the three middle rates into a single, lower rate of 4.75 percent, while keeping the low rate at 3.75 percent.
But it noted that The Tax Foundation, an independent tax research policy organization, said Rhode Island’s median real estate taxes, levied by cities and towns, are the 10th-highest in the country.
California was ranked the least tax friendly in the nation by Kiplinger’s, followed by Connecticut, New Jersey, Hawaii and New York. Vermont, Maine, Minnesota and Illinois round out the rest of the top 10 worst states.
After Delaware, the most tax-friendly states are Wyoming, Alaska, Louisiana, Alabama, Mississippi, Arizona, New Mexico, Nevada and South Carolina.

“Over the next year, millions of Americans will move to a different state – for all sorts of reasons,” Robert Long, managing editor of Kiplinger.com, said in a statement. “From young professionals moving across the country for a new job to working parents moving a state over to find a better home for their family, the Tax Map provides a valuable tool to people of all ages, backgrounds and career stages.”

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