With Tax Day fast approaching, WalletHub has released its 2023 Taxpayer Survey, as well as its annual report on the States with the Highest & Lowest Tax Rates, to help taxpayers navigate the confusing time of year. The report comes as 81% of Americans say they are more concerned about inflation than taxes this year.
According to the report, Utah ranks seventh in overall effective state and local tax rate, 27th in income tax, eighth in real estate tax, first in vehicle property tax, and 10th in sales and excise taxes. Utah’s intermountain neighbors also rank high, with Montana 3rd, Nevada 4th, Wyoming 5th, Idaho 8th and Colorado 9th.
The 2023 Taxpayer Survey revealed that 73% of people think the government does not spend their tax dollars wisely. Nearly 34% of respondents said that not having enough money is their biggest fear on Tax Day, followed by making a math mistake (23%) and getting audited (22%).
“The biggest things that Americans fear on Tax Day are not having enough money and making a math mistake. In third place is a fear of getting audited,” said Jill Gonzalez, WalletHub analyst. “What people should be most concerned about is having enough money to pay what they owe, as trying to come up with additional funds on short notice is difficult for many people during this time of high inflation.
“Taxpayers can avoid making math errors by completing their tax return early reviewing it thoroughly for mistakes before submitting it. They can also take advantage of free tax-prep resources that can help make sure that the math checks out.”
Interestingly, 39% of people said they would move to a different country for a tax-free future, while 37% would get an “IRS” tattoo and 23% would stop talking for six months. Furthermore, 49% of people said they would do jury duty rather than do their taxes, while 36% would talk to their kids about sex and 26% would miss a connecting flight.
The survey also found that 72% of people believe their current tax rate is too high.
In order to identify the states with the highest and lowest tax rates, WalletHub compared the 50 states and the District of Columbia across four types of taxation: Real-Estate tax; Vehicle tax; Income tax; and, Sales and Excise Tax.