8 States With the Worst Taxes in the U.S. That Are Driving the Middle-Class Away

Pennsylvania

The property tax rate for a $300,000 home is approximately $4,074 annually, and the state income tax rate is 3.07%, relatively high compared to other states.

Michigan

With a flat state income tax rate of 4.25%, higher than the national average, and a property tax for a $300,000 home amounting to about $3,972 yearly, Michigan presents financial challenges for residents.

Connecticut

Residents face one of the highest property tax rates in the U.S., with a $300,000 home incurring around $5,871 annually, alongside state income tax rates ranging from 3% to 6.99% based on income levels.

New Jersey

Notorious for the highest property tax in the U.S., a $300,000 home in New Jersey costs approximately $6,771 annually, compounded by state income tax rates ranging from 1.4% to 10.75%.

Kansas

The Sunflower State boasts a combined state and local tax rate of 8.71%, and residents with a $300,000 home face an annual property tax of about $3,990, making it financially burdensome for many.

Maryland

Despite a relatively lower property tax of around $2,961 yearly for a $300,000 home, Maryland residents contend with the highest income tax bill in the U.S., varying based on income levels.

Illinois

Known for its high sales tax and a state income tax rate of 4.95%, Illinois poses financial challenges for its residents compared to other middle-class areas.

Iowa

Iowa residents grapple with a state income tax that can reach up to 8.75% on higher incomes, compounded by additional local taxes in certain districts, alongside property tax rates ranking among the top 10 highest in the U.S.