HONOLULU (KHON2) — The tax season deadline is fast approaching with March ending and April beginning in less than a week. Depending on where you reside will determine what your tax burden will look like.
WalletHub, a credit score company, compared the 50 states across three tax types of state tax burdens – property taxes, induvial income taxes and excise taxes.
Coming in first place in their study is New York and following in second place is Hawaii. According to their report Hawaii had the highest total sales and excise tax as percentage of income. States with the least amount of tax burden were Delaware, Tennessee and Alaska.
According to WalletHub, Americans spend 6.1 billion hours doing taxes each year and the average person spends 13 hours and $240 completing their 1040.
They find 90% of tax returns are expected to be filed electronically and the average refund in 2022 is $3,473 as of Feb. 25 2022.
“I think this tax year will be different from past tax years because of two main factors,” said Nicholas Robinson with Eastern Illinois University. “The first is a cryptocurrency and the second is the COVID provisions. Most people may already assume there will be differences because of COVID but the sneaky one that I do not believe most people will be cognizant of is related to crypto-trading.”
Robinson said the best tips he can offer if you still haven’t filed your taxes is to prepare in advance and keep track of everything throughout the year.
“Be that in a physical file or electronically,” said Robinson. “If you know everything that you will have to report or declare when it comes time to prepare your return, it will go much faster and you will not be struggling.”
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To read the full report on tax burdens by state click here, and to read more helpful tips for filing your taxes head to WalletHub’s website.
