When it comes to taxes, not all states are created equal. Some have higher tax rates than others, which can greatly affect residents’ economic positions. Connecticut residents in particular carry a significant tax burden, as tax rates here are some of the worst in the country.
According to a recent report, Connecticut ranks 6th in the nation for states with the heaviest tax burden. This was determined by looking at how much residents of each state pay in sales, property and income taxes every year. The percentage of income put toward the payment of taxes was also considered when ranking each state.
As it currently stands, Connecticut residents use, on average, about 10% of their income to pay various state and local taxes. Property taxes account for roughly 4.19% of that, while income taxes account for 3.09% of an individual’s tax burden. It is a lot, and many people find themselves struggling to meet their tax obligations every year because taxes here are so much higher than they are in most other states.
Numerous Connecticut residents wonder what they can do when they find themselves unable to pay their taxes in full because they simply owe more than they can possibly cover out of pocket right away. Thankfully, there are a few options that will allow them to remain in good standing with the government and minimize any fees or penalties that may be imposed for failing to pay their taxes on time. An experienced tax attorney will have the ability to review the details of one’s tax situation and offer guidance on the best way to approach the matter.