The highest income taxes in 2019 are expected in states such as California, Georgia, Mississippi, South Carolina, Tennessee, Virginia, Hawaii and Wyoming, according to a report from the Tax Foundation.
States with the highest tax rates will have the highest rates of payroll taxes, excise taxes, property taxes and sales taxes.
California has the highest state income tax rate at 6.9%, while Georgia and Mississippi have the lowest at 2.7% and 2.1%, respectively.
In addition, the Tax Federation estimated the states with the largest state payroll tax collections in 2019 will be the ones that have the largest tax hikes for individuals, corporations and partnerships, with the state’s highest payroll tax rate of 10.5%.
The Tax Foundation also estimates that the states that are expected to have the biggest tax increases for individuals and corporations will also have the greatest tax hikes in 2019.
The states with highest tax increases are expected with a total of $10.7 trillion, or 8.4% of total GDP, according the Tax Policy Center.
In 2019, the top tax rate for individual taxpayers is expected to be 39.6%, the highest in the country.
The Tax Policy Institute estimated the average effective marginal tax rate (the amount of tax a taxpayer has to pay before they get any tax benefits) will be 3.5% in 2019, compared to an average of about 2.4%.
The top rate on corporate income taxes is expected at 20% in 2018, with a top marginal rate of 35%.
The report also predicts that corporations will have an effective tax rate on their first $100 million in profits of 35% in 2020 and 35% on their next $100 billion in profits.
A combination of the states’ high payroll tax rates and the increased burden on individuals and businesses will result in a significant economic drag on the economy in 2019 and beyond, according in the Tax Foundations report.
The highest payroll taxes and excise taxes will have a huge impact on the state economy, as the Tax Institute estimated in the report.
A state’s effective marginal income tax (EIT) for individuals will be higher than the federal average, and an effective marginal corporate income tax will be lower than the average for states, according The Tax Foundation’s analysis.