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Texas ranked among highest tax rates in the US, WalletHub says

FILE - A portion of the 1040 U.S. Individual Income Tax Return form is shown July 24, 2018, in New York. The IRS said Tuesday, June 21, 2022, that it will have erased its backlog of last season's tax returns by the end of this week. (AP Photo/Mark Lennihan, File) (Mark Lennihan, Copyright 2018 The Associated Press. All rights reserved.)

HOUSTON – Texas was once considered cheaper to live, but as we know, lots of things have changed and a new report says residents are feeling it just as much during tax season.

SEE ALSO: Texas named most financially distressed state in America, report says

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Researchers at WalletHub looked at all 50 states and Washington D.C. to find states with the highest and lowest tax rates. Among the factors they looked at included tax filing costs, inflation concerns, fairness, and evasions.

The results ultimately landed Texas as having the 10th highest tax rates in the U.S. Granted, the overall rank differs when adjusted based on the cost of living, but WalletHub’s analysts still say residents pay more on real estate taxes.

“Texas residents also don’t pay income tax, but spend 1.58% of their income on real estate taxes, one of the highest rates in the country,” the report claimed.

MORE: Texas House and Senate lawmakers have laid out their property tax cut proposals. How do they compare?

“Every year during tax season, Americans are reminded of just how much of their hard-earned income isn’t theirs to keep,” Chip Lupo, WalletHub Analyst added in a statement. “Living in the right state can ease the stress of tax time, though, as taxpayers in the least expensive states pay less than half as much as those in the most expensive states.”

To see the full results and how other states compared, click here.


About the Author
Ahmed Humble headshot

Historian, educator, writer, expert on "The Simpsons," amateur photographer, essayist, film & tv reviewer and race/religious identity scholar. Joined KPRC 2 in Spring 2024 but has been featured in various online newspapers and in the Journal of South Texas' Fall 2019 issue.

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