State income tax in Louisiana equals 15.7 percent of total taxes collected

Louisiana ranked 40th in a new study by the Tax Foundation, which evaluated how dependent states are on individual income taxes.

State income tax collections in Louisiana total 15.7 percent of all state and local levies collected, based on the most recent data available from fiscal-year 2016.

Nationwide, the average state reliance on individual income tax revenues is 23.5 percent, according to the Tax Foundation’s analysis. Seven states – Alaska, Florida, South Dakota, Wyoming, Nevada, Texas and Washington – levy no state income taxes, while New Hampshire and Tennessee tax only interest and dividend income, not workers’ wages.

Income taxes have a more negative effect on economic growth than sales and property taxes, the Tax Foundation notes, because income taxes rely on wages and savings, whereas consumption taxes fall on consumer spending rather than earnings.

Which States Depend Most on Income Taxes?

Rank State Income Tax as a % of State and Local Taxes
1 Oregon 41.7%
2 Maryland 37.8%
3 California 33.8%
4 Kentucky 33.3%
5 New York 32.7%
6 Massachusetts 32.7%
7 Minnesota 31.9%
8 Virginia 31.9%
9 North Carolina 30.3%
10 Montana 29.7%
11 Utah 29.6%
12 Connecticut 29.2%
13 Missouri 28.6%
14 Georgia 27.7%
15 Wisconsin 27.1%
16 Pennsylvania 26.2%
17 Delaware 25.8%
18 West Virginia 25.8%
19 Idaho 25.8%
20 Ohio 25.6%
21 Indiana 25.5%
22 Colorado 25.4%
23 Michigan 24.2%
24 Iowa 23.9%
25 Arkansas 23.5%
26 Alabama 23.2%
27 Nebraska 23.1%
28 Hawaii 22.9%
29 South Carolina 22.7%
30 Maine 22.4%
31 New Jersey 22.2%
32 Oklahoma 22.1%
33 Rhode Island 21%
34 Vermont 19.8%
35 Illinois 19%
36 New Mexico 17.4%
37 Kansas 17.1%
38 Mississippi 16.7%
39 Arizona 16%
40 Louisiana 15.7%
41 North Dakota 7%
42 Tennessee 1.5%
43 New Hampshire 1.4%
44 (tie) Washington 0%
44 (tie) Nevada 0%
44 (tie) Alaska 0%
44 (tie) Wyoming 0%
44 (tie) Texas 0%
44 (tie) Florida 0%
44 (tie) South Dakota 0%

Source: Tax Foundation

This is a revised article first published by The Center Square.

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