Washington Is 2nd Worst State to Be Poor from a Tax Perspective

Do Low-Income Workers Pay More Taxes Than Upper-Income Workers In WA?

Tax season is here and I'll be the first to admit that I owe taxes every year. My wife and I have grown children and even as homeowners, we've got nothing we can deduct to escape paying a few thousand every year in taxes.

Sara Robinson

How Much Taxes Do Low-Income Workers Pay In Washington State?

I even double-checked, I've paid more taxes than some former Presidents. It doesn't seem very fair since my wife and I are not even close to being rich. It might not surprise you but Washington State residents who are lower-income have a bigger tax burden than you might expect.

Get our free mobile app

According to our friends at WalletHub, many taxes — including property taxes, sales taxes, and some state and local taxes, are regressive.

That means they take more money out of the pockets of Americans in the lower- and middle-income brackets than from wealthier families.

Nationally, people in the least-wealthy fifth of the population pay around 11.4% of their income in state taxes, while the richest one-percenters pay 7.2%.

Thinkstock

So it might not come as any surprise to these statistics but WalletHub breaks it down:

Tax Burden in Washington (1=Best, 25 =Avg.):

50^th – Low-Income Earners (13.91% of Income)
47^th – Middle-Income Earners (11.96% of Income)
21^st – High-Income Earners (8.98% of Income)

“The wealthy and less fortunate are both subject to taxes, but unfortunately people who are not as well off can end up getting hit harder due to the regressive nature of many taxes. Living in a state where your income bracket isn’t squeezed as hard during tax season can save you a lot of money. A few states even cut costs dramatically by not charging income tax altogether.” - Cassandra Happe, WalletHub Analyst

As you pay your taxes in Washington State this year, it's a somber reminder that we are in the same boat together when it comes to paying taxes and that tax relief would be a welcome respite from our lawmakers if possible - I'm looking at you, Newhouse.

For the full report, please visit: http://wallethub.com/edu/best-states-to-be-rich-poor-from-a-tax-perspective/11257/

Source: WalletHub