WASHINGTON – D.C. taxpayers pay out less in local taxes than the average taxpayer nationwide thanks to low rates on homes and vehicles, according to an analysis by WalletHub.com.
Virginia and Maryland both had combined local and state rates above the national average of about $5,640 annually.
Average taxpayers in Virginia pay about $5,745 annually and in Maryland they pay about $6,265 in local and state taxes. In comparison, the average D.C. taxpayer shells out just $5,287, according to Wallet Hub.
Wallet Hub considered state and local income taxes, local real estate taxes on homes (based on median home values), local vehicle property taxes (based on the value of a 2015 Toyota Camry) plus sales and excise taxes on items like food, cigarettes and gas.
D.C. doesn’t charge a vehicle property tax, has relatively low property taxes but has a high income tax. The District functions as a city, county and state.
Maryland has the third highest state and local income tax rates. Virginia has the second highest vehicle property taxes and among the lowest sales and excise taxes, according to the Wallet Hub analysis.
Illinois had the highest average local and state tax burden and Alaska had the lowest.
