New Mexico ranked 38th among the sates when it came to per capita individual tax collections. The state took an average of $622 in personal income taxes from every person in the state in 2014.
Here’s some good news for New Mexicans: the state doesn’t grab as much individual income tax money from each of us than other states do from their residents.
New Mexico ranked 38th among the sates when it came to per capita individual tax collections, according to the Washington, D.C.-based Tax Foundation.
State government took an average of $622 in personal income taxes from every person in the state in 2014.
Nationally, state and local governments collected an average of $1,070 per person in individual income taxes in 2014. New York collected $2,699 per person, the most of any state. Connecticut was second at $2,162, and Maryland was third at $2,097 collected per person.
Arizona collected $515 per person, the least among states with broad-based taxes on wage income, the Tax Foundation said.
Seven states – Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming – don’t have personal income taxes.
New Hampshire and Tennessee tax only dividend and interest income.
According to the Tax Foundation, “The individual income tax is the third largest source of tax revenue for state and local governments, accounting for 22.9 percent of collections in fiscal year 2014. Property taxes and sales taxes comprise larger shares of state and local tax collection at 31.3 percent and 23.3 percent respectively.”