According to a new study from Wallet Hub, Georgia ranks 23rd among the 50 states on tax rates.
The median Georgia household pays about $100 more than the average U.S. household, which pays more than $5,700 in federal income taxes, according to the Bureau of Labor Statistics.
When reviewing the cost of living, Georiga ranks 14th among the 50 states. The states of Connecticut, Nebraska, New York, and Rhode Island follow Illinois as the highest taxed states. The lowest-taxed were Alaska, Delaware, and Montana.
Neighboring states such as Tennesee ranked 6th, Florida ranked 9th, South Carolina ranked 10th, and Alabama ranked 14th.
The study was broken down into the following categories:
- Effective total state and local tax rates on median U.S. household: 10.54 percent
- Annual state and local taxes on median U.S. household: $5,876
- Percent difference between state and U.S. average: Minus 2.06 percent
- Annual state and local taxes on median state household: $5,237
- Adjusted overall rank (based on cost of living index): 14
The study also found that Republican lead states generally impose lower taxes than Democratic lead states. Republican lead states’ average position on the ranking as 24.8, while Democratic lead states’ average position was 27.71.