With tax day quickly approaching, it’s interesting to look at where Colorado tax rates fall in comparison to the rest of the United States. WalletHub* recently performed an interesting analysis of each state’s tax rates.
They found that Colorado falls into the bottom 25% of all fifty states with a median tax rate of 9.41%, compared to the highest taxed state, Illinois, with a 14.54% tax rate. According to their findings, living in Colorado could save the average family $700 a year in taxes.
You may also find it interesting that red states tend to impose lower taxes than blue states.
The post by WalletHub provides fascinating charts with data such as overall tax rate rank, adjusted rank based on cost of living index and a look at red states versus blue states.
*We believe that WalletHub intended to include effective Federal taxes with effective state and local taxes in the titling of the first chart (column 3).