Residents of New England are paying some of the highest taxes in the United States, according to a comprehensive study analyzing the lifetime tax burdens across all fifty states.
The report, recently published by financial services firm Self Financial, provides an eye-opening glimpse into the financial futures of Americans based on current tax policies.
On average, a Maine resident will pay $581,750 in total taxes over their lifetime, which amounts to 40.9 percent of their estimated lifetime earnings.
This places Maine as one of the top ten highest tax-paying states by percentage of lifetime earnings in the nation, alongside its New England neighbors.
Connecticut and Massachusetts residents face even steeper taxes with lifetime contributions of $855,307 and $816,700, respectively, making them the third and fourth highest in the United States. The figures represent nearly half of their lifetime earnings, at 49.4 percent and 44.0 percent, respectively.
The study was based on American Community Survey and accounted for various types of taxes including income, sales, property, and auto taxes over a hypothetical 45-year working life from age 20 to 65. According to Self Financial, the methodology involved inflating the current tax rates and median home values to predict future burdens.
In contrast to New England, states like Wyoming and Alaska offer the most favorable tax environments with lifetime tax contributions at 28.2 percent and 24.5 percent of lifetime earnings respectively.
The full study is available here.
