Iowans on average pay the ninth-highest amount of state and local taxes compared to other states in the nation, according to a study released today by financial resource social media site WalletHub.
According to WalletHub's "Best & Worst States to be a Taxpayer" Iowans pay, on average, $8,788 in state and local taxes annually, which is 27 percent higher than the national average.
Using data from the U.S. Census Bureau, the Internal Revenue Service and other sources, WalletHub looked at 10 different types of taxation, including real estate taxes, state and local income taxes, sales taxes, and sales and use taxes. The site used that information to determine which states have the highest and lowest tax rates and how that compares to the national median.
Iowa had the seventh-highest state income tax, at 7.29 percent, the seventh-highest auto sales tax, at $222.15, the 11th-highest local income tax, at 0.004 percent, and the 14th-highest real estate tax, at 1.43 percent.
Wyoming had the lowest average annual state and local taxes, at $2,365, which is 66 percent below the national average. Of note, Wisconsin, Illinois and Nebraska residents all pay more in taxes than Iowa. Minnesotans pays slightly less at $8,261, and Missouri residents pay $7,220.