SECTION TWO: INCOME TAX

One state in our comparison group has no income tax of any type: Washington. New Hampshire imposes a tax on interest and dividends, and Florida imposes a tax on intangible personal property, e.g., stocks and bonds. [ See Volume II, Appendix for a description of state income taxes] In the tables that follow, the tax liability attributed to each of these states is the sum of (1) the state income tax, if any, (2) th e additional federal income tax paid because of the absence of a state income tax deduction, and (3) the inclusion of property tax rebates where they occur separate from the income tax, as is the case in Vermont. The property tax rebate is included for Vermont in the interest of making a fair comparison between states. Several other states in our study include rental and property tax rebates, either as credits against income or payments against tax liability. Even in Vermont, taxpayers over age 62 includ e the rental or property tax rebate as a payment on their returns. To omit applicable rebates from returns for taxpayers under age 62 seemed to be more "apples to oranges" than our study intended.

Summary of Vermont Income Tax Ranking


Under Age 65

Over Age 65

Income Range

Single

Married Joint

Married Separate

Head of Household

Single

Married Joint

0 - 15,000

11



11

6

2

15,000 - 30,000

7

11


11

7


30,000 - 50,000

9

12

9



7

50,000 - 100,000

9

9




9

100,000 +

9

8




10

1=Highest Tax; 12=Lowest Tax

Specific observations by income group follow:

Income Tax - Income Group: $0 - $15,000

Profile

HOH<65


MFJ>65


Single<65


Single>65


HOH<65



Case #13


Case #19


Case #1


Case #16


Case #24


AGI ($)

10,360


10,360


7,740


7,740


0



Tax ($)


Tax ($)


Tax ($)


Tax ($)


Tax ($)


State











Connecticut

0

1

0

2

0

5

0

7

0

1

Florida

0

1

36

1

0

5

38

3

0

1

Maine

0

1

0

2

35

3

16

5

0

1

Massachusetts

0

1

0

2

0

5

0

7

0

1

Minnesota

(1,687)

12

(167)

12

(454)

12

(146)

11

(672)

12

New Hampshire

0

1

0

2

0

5

0

7

0

1

New York

(264)

10

(82)

11

(67)

10

(168)

12

(75)

10

North Carolina

0

1

0

2

149

2

104

2

0

1

Oregon

0

1

0

2

260

1

166

1

0

1

Vermont

(1,071)

11

0

2

(395)

11

15

6

(462)

11

Washington

0

1

0

2

0

5

0

7

0

1

Wisconsin

(69)

9

0

2

27

4

27

4

0

1

Income Tax - Income Group: $15,000 - $30,000

Profile

HOH<65


MFJ<65


Single<65


Single>65



Case #25


Case #7


Case #2


Case #17


AGI ($)

18,000


19,224


19,104


28,065



Tax ($)


Tax ($)


Tax ($)


Tax ($)


State









Connecticut

0

2

0

7

208

9

46

10

Florida

0

2

0

7

0

10

56

9

Maine

0

2

128

6

609

6

283

7

Massachusetts

174

1

555

2

775

3

660

2

Minnesota

(2,036)

12

(196)

12

356

8

325

5

New Hampshire

0

2

0

7

0

10

0

11

New York

(216)

9

165

5

616

5

271

8

North Carolina

0

2

449

3

844

2

566

3

Oregon

0

2

796

1

1,115

1

737

1

Vermont

(536)

11

(51)

11

430

7

303

6

Washington

0

2

0

7

0

10

0

11

Wisconsin

(401)

10

421

4

754

4

464

4

Income Tax - Income Group: $30,000 - $50,000

Profile

MFJ<65


MFJ>65


MFS<65


Single<65



Case #8


Case #21


Case #11


Case #3


AGI ($)

36,190


36,172


36,156


36,190



Tax ($)


Tax ($)


Tax ($)


Tax ($)


State









Connecticut

356

8

356

9

1,425

8

1,465

8

Florida

157

9

70

10

294

10

0

10

Maine

505

6

832

8

1,544

7

2,007

4

Massachusetts

1,376

1

1,512

3

1,837

2

1,837

7

Minnesota

561

5

1,395

4

1,720

5

2,068

2

New Hampshire

157

9

0

11

294

10

0

10

New York

1,020

4

1,133

6

1,747

4

1,956

6

North Carolina

461

7

1,347

5

1,614

6

2,037

3

Oregon

1,297

2

1,708

2

2,006

1

2,555

1

Vermont

(344)

12

867

7

996

9

1,233

9

Washington

157

9

0

11

294

10

0

10

Wisconsin

1,110

3

1,756

1

1,817

3

2,002

5

Income Tax - Income Group: $50,000 - $100,000

Profile

MFJ<65


Single<65


MFJ>65



Case #9


Case #4


Case #22


AGI ($)

53,445


53,445


84,627



Tax ($)


Tax ($)


Tax ($)


State







Connecticut

1,436

8

2,404

8

3,427

8

Florida

128

10

730

10

827

10

Maine

1,479

6

2,955

5

3,994

5

Massachusetts

2,584

1

3,245

2

3,988

6

Minnesota

2,083

5

2,734

7

5,110

1

New Hampshire

128

10

714

11

714

11

New York

2,200

4

3,007

3

4,243

4

North Carolina

1,478

7

2,755

6

3,973

7

Oregon

2,461

3

3,365

1

4,974

2

Vermont

918

9

1,928

9

3,424

9

Washington

128

10

714

11

714

11

Wisconsin

2,480

2

2,961

4

4,712

3

Income Tax - Income Group: $100,000 +

Profile

MFJ>65


Single<65


MFJ<65


MFJ<65



Case #23


Case #5


Case #26


Case #27


AGI ($)

108,284


108,284


191,953


421,506



Tax ($)


Tax ($)


Tax ($)


Tax ($)


State









Connecticut

4,873

5

4,873

8

8,638

9

18,968

9

Florida

3,610

9

2,858

10

2,851

11

12,735

11

Maine

4,468

7

6,282

5

13,166

4

30,828

3

Massachusetts

5,935

2

6,764

2

12,755

5

28,334

6

Minnesota

5,748

3

6,406

3

13,408

2

31,868

2

New Hampshire

2,750

11

2,842

11

3,932

10

17,945

10

New York

4,725

6

6,108

6

13,195

3

29,889

4

North Carolina

4,398

8

5,666

7

12,155

7

28,649

5

Oregon

5,476

4

6,889

1

14,796

1

33,775

1

Vermont

3,550

10

4,337

9

10,482

8

26,315

8

Washington

2,450

12

2,712

12

1,485

12

7,965

12

Wisconsin

6,177

1

6,287

4

12,185

6

27,065

7