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

RHODE ISLAND is one of the least tax-friendly states in the nation, coming in 10th, according to Kiplinger's.  On the other end of the spectrum, Wyoming led the nation for being the most tax friendly. / COURTESY KIPLINGER'S
RHODE ISLAND is one of the least tax-friendly states in the nation, coming in 10th, according to Kiplinger's. On the other end of the spectrum, Wyoming led the nation for being the most tax friendly. / COURTESY KIPLINGER'S

PROVIDENCE – Rhode Island again is one of the least tax-friendly states, according to Kiplinger.
The finance newsletter released its fourth annual tax map of the most and least tax-friendly states on Friday, placing Rhode Island 10th worst in the nation.
That’s an improvement from last year when the Ocean State ranked sixth worst.
Kiplinger’s looked at income taxes, sales taxes, gas taxes, “sin” taxes (for products such as alcohol and tobacco) and other tax rules and exemptions across all 50 states and Washington, to come up with its rankings.
Wyoming topped the list of the most tax-friendly states, while California again topped the list for being the least tax-friendly.
New England states dominated the top 10 least tax-friendly list with Connecticut placing third; Maine, seventh; and Vermont, eighth. No New England states were on the most tax-friendly list.
The Ocean State was called “expensive for homeowners” by Kiplinger, which said the property tax on the state’s median home value of $236,000 is $3,855, the 11th-highest in the U.S. It noted that the state’s 7 percent state sales tax is applied to motor vehicles and that the gasoline tax is 34 cents per gallon. Income tax ranges from a low of 3.75 percent to 5.99 percent depending on amount of taxable income.
Wyoming, which has no state income tax, has a gasoline tax of 24 cents per gallon; the median property tax on its median home value of $201,000 is $1,206.
“Where you live can have a dramatic impact on your wallet and savings. The Tax Map is an extremely valuable resource – especially for those considering a move to a different state,” Sandra Block, senior associate editor at Kiplinger’s Personal Finance, said in a statement. “It’s worth pointing out, though, that there are tradeoffs to living in a state with lower taxes – since there are likely less funds going to roads, bridges, schools and various other public services we may otherwise take for granted.”

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  1. That last paragraph has a key point that should not be overlooked. Taxes are intended to fund public works such as the ones listed in the article. The quality of life in various states/regions seems to me (anecdotally) do reflect on the cost of living. How those funds are distributed is a completely different matter.