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(The Center Square) – Florida has one of the lowest tax burdens for residents in the country, according to a personal finance website.
Florida, third-most populated state at just shy of 22 million residents, does not have a state income tax. The total tax burden was analyzed at 6.33%.
Tax burdens measure the amount of tax that individuals have to pay towards state and local taxes. The study is from WalletHub, which offers a number of financial services.
Analyzed were sales and excise tax, property tax and income tax. Florida was No. 46 in overall tax burden.
Ranked No. 1 overall is New York at 12.47%. New York also has the highest individual income tax burden at 4.72%. Hawaii and Maine were next.
Florida ranks 18th highest for total sales and excise tax burden and pulls in an average of $600 per person per year for alcohol, cigarettes and gasoline, according to the Tax Foundation.
In February 2023, to counter growing inflation, Republican Gov. Ron DeSantis unveiled a $2 billion tax relief package for Floridians. This included permanently nixing sales tax – which is a flat 6% – from everyday items for babies and children, including diapers, wipes, clothing and school resources.
In a news release about the coming tax relief, DeSantis said, “Inflation continues to burden Florida families and we must fight back against rising costs by cutting the sales tax on necessary items,” adding that this was only possible through smart fiscal policies and strong reserves.
Relief in other areas included a yearlong 50% discount on tolls for residents who meet the eligibility requirements and tax holidays on items like concert tickets and theme parks to encourage Floridians to spend their money at home.
A key driver of the economy is tourism, and since the beginning of the COVID-19 pandemic, Florida has reported record numbers of tourists since then, surpassing prepandemic levels by early 2022.
For fiscal year 2022-23, the Sunshine State reported a surplus of $20 billion, despite the devastation that was caused during hurricanes Ian and Nicole in September and November of 2022. Florida has managed to quickly build back key infrastructure in the wake of the storms, like the Sanibel Causeway that was washed away by the storm surge.
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This article First appeared in the center square
