PROVIDENCE was named the eighth most-taxed city in the U.S., with a family of three making $50,000 annually paying 12.6 percent of its household income in taxes in 2011. For a larger version, please click on the image.
KANSAS CITY – Providence has ranked eighth on H&R Block’s list of the top 10 cities in the United States with the highest state and local tax burden for a family of three making $50,000.
H&R Block made their rankings based on a report released from the “Tax Rates and Tax Burdens 2011 Nationwide” report by the U.S. Office of the Chief Financial Officer that ranks the most populous city in each state.
The H&R Block list found that a hypothetical three-person family in Providence making $50,000 paid $6,034 in taxes in 2011, 12.6 percent of their household income. Of that $6,034 in taxes, $3,876 was property tax alone.
Bridgeport, Conn., and Newark, N.J., topped the H.R. Block list, with the hypothetical family of three earning $50,000 paying 24.5 percent and 18.3 percent of household income in taxes, respectively.
Boston closed out the top 10, with a family of three making $50,000 paying $6,125 in taxes annually, 12.2 percent of household income. Cheyenne, Wyo., earned the moniker of least-taxed city, with a family of three making $50,000 paying 4.3 percent of its annual income in taxes.
Providence fared slightly better in other income brackets, slipping out of the top 10 for the estimated tax burden of a family of three making $25,000, $75,000, $100,000 and $150,000.
In Rhode Island’s capital city, a family of three making $25,000 annually paid 12.5 percent of its household income in taxes, earning Providence the No. 21 slot. A family making $75,000 annually paid 11 percent of its annual household income in taxes, the 12th most in the U.S. A family of three making $100,000 annually pays 9.8 percent of its income in taxes, the 15th highest in the U.S. A family living in Providence earning $150,000 annually paid 9.4 percent of its household income in taxes, the 20th highest in the U.S.
Over all of the income brackets analyzed, Bridgeport, an outlying suburb of New York City, was ranked the No. 1 most taxed city in the country. At no point do families living in Bridgeport pay less than 15 percent of their annual income in taxes.
In last year’s report, using data from 2010, Providence ranked No. 7 for the most-taxed city in the U.S., although a family of three making $50,000 paid $434 less annually, only 11.3 percent of its annual income, in taxes in 2010.
Estate and Corporate Income Taxes are changing next year, and business owners and executives should know the details. The PBN Summit on November 6th will provide those details and more - including how much Obamacare's Employer Mandate could cost.
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