Want to keep more cash in your wallet? It’s not as simple as moving to a state with a lower tax rate.
Cities can also hit you with additional taxes on top of what you pay to the state. A few years ago, Intuit TurboTax alerted taxpayers to some U.S. cities where taxes are relatively high.
Here are some of the cities they listed, along with the taxes you might pay if you live there.
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Detroit
The city of Detroit has a 2.4% income tax on top of any federal or state taxes you already pay. TurboTax notes that the city also has high property tax rates.
Louisville, Kentucky
Louisville has a tax rate of 2.2% on top of Kentucky’s flat tax rate of 4%. Because flat-tax rates are not progressive, lower-income residents can be hit harder by these taxes than more affluent earners.
Portland, Maine
Maine has some of the highest taxes in the U.S., and is especially notorious for its property tax burden. So, if you want to avoid high taxes, you might want to cross Portland off your list of places to live.
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Providence, Rhode Island
The property tax rate in Providence is high, and it doesn’t help that Rhode Island’s gas tax of 37 cents per gallon is among the highest in the country.
Baltimore
From a 5.62% property tax rate to 3.2% city income tax, Baltimore is not shy in taxing its residents. That can make it tougher for residents to make ends meet.
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Milwaukee
Wisconsin has some of the highest property tax rates in the country. If you plan to live in the state’s biggest city — Milwaukee — you will pay an average effective property tax rate of 2.53%.
Philadelphia
Pennsylvania isn’t known for low taxes — for starters, you will pay a gas tax of approximately 58 cents per gallon. In Philadelphia, you will owe a wage tax of 3.75% on top of that.
Bridgeport, Connecticut
Bridgeport has a reputation as a wealthy New England city, which might explain why its tax rate is one of the highest in the country. Residents of this picturesque enclave pay a property tax rate of 4.35%.
Bottom line
If you're looking to build wealth, a wise first step can be choosing a place to live where taxes are low.
Keeping more money in your wallet — and out of the hands of the government — means more cash to pay bills and put into savings at the end of the month.
If that is your goal, you might want to avoid the cities on this list.
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