A recently released report developed by the Tax Foundation, State-Local Tax Burdens Fall in 2009 as Tax Revenues Shrink Faster than Income, ranks Georgia among the lower half of states based on an analysis of several factors related to the payment of state and local taxes.   The state ranks 32rd with an estimated 9.1% of income paid to state and local taxes, which is lower than the 2008 ranking of 30th.

 

The study estimates the average total tax burden for residents of each state, including both the in-state taxes they're subject to as well as taxes they pay to other states, for example by virtue of working in, traveling to, or buying products from other states. This method takes the point of view of the individual taxpayer, counting all taxes they pay, no matter which state they pay them to. Many other tax measures focus only on state-by-state revenue totals and reflect the perspective of a state's tax collectors.

 

The nation as a whole paid 9.8% of its income in state and local taxes, down slightly from 9.9% in 2008 and down significantly from 10.4% in 1977, the earliest year for which the Tax Foundation has done such estimates. While it is useful and informative to look at the national trend, burdens among the states can vary widely.

 

The Tax Foundation is a nonpartisan, nonprofit organization that has monitored fiscal policy at the federal, state and local levels since 1937.   To view their news release on this report, click here.