Burlington's overall tax liability favorable compared to other Northeastern states
If the lakeside city’s natural geographic beauty and impressive cultural scene weren’t enough, there may be yet another reason to love Burlington. Davis & Hodgdon Associates, CPAS – PLC recently compiled data regarding the overall tax liabilities of Burlington residents. This city’s residents may actually have less tax liability than previously assumed by many – at least in comparison to other northeastern cities.
Using the American Institute of Certified Public Accountants (AICPA)’s new Total Tax Insight Calculator tool, Davis & Hodgdon Associates CPAs performed an analysis of how much Burlington residents pay in taxes on items such as groceries, gasoline, sales and use, and utilities to name a few, in comparison to similar communities in neighboring Northeastern states. The calculation results will be welcome news to Burlington residents as well as those individuals considering relocation to the lakeside city.
Comparable community data used in this study includes:
- Portland, Maine
- Manchester, New Hampshire
- Medford, Massachusetts
- Warwick, Rhode Island
- Bristol, Connecticut
- Albany, New York
Key findings included:
- A two-income household with an adjusted gross income (AGI) of $155,750 (predominantly consisting of wages) with 2 children residing in a Burlington home with an appraised value of $410,000 will pay approximately $ 51,918 in total taxes. This is well below Bristol, CT and Albany, NY, but more than the same household in Manchester, NH, Medford, MA and Warwick, RI.
- A two-income household with an AGI of $68,100 (predominantly consisting of wages) with 2 children residing in a Burlington home with an appraised value of $240,000 will pay approximately $18,309 in taxes. This is slightly less than the same household in Albany, NY and marginally more than the same household in Manchester, NH.
- A recently retired couple with an AGI of $54,000 (predominantly consisting of capital gains and dividends) residing in a Burlington home with an appraised value of $490,000 will pay approximately $12,100 in taxes. This is comparable to Warwick, RI and less than Bristol, CT and Albany, NY.
- A small business owner with an AGI of $156,000 ($120,000 of which is from self-employment income) residing in a Burlington home with an appraised value of $410,000 will pay approximately $56,051 in taxes. This is comparable to Portland, ME, significantly less than Albany, NY and Bristol, CT and more than Manchester, NH, Medford, MA and Warwick, RI
“We are happy to report that with regard to tax liability, Burlington hovers ‘in the middle’ of the pack in all cases,” says John Davis, Managing Partner of Davis & Hodgdon Associates CPAs. “Albany, NY and Bristol, CT consistently have higher tax liability while Manchester, NH and Medford, MA generally have lower liability. These findings may be particularly relevant to those who theoretically can easily relocate and choose where they live, as well as to comfort those Burlington residents who had assumed otherwise. It certainly bodes well for our fair lakeside city.”
For more details including expanded information on this study as well as graphic illustrations of the results, please visit http://bit.ly/NRlMmB or www.dh-cpa.com, and select “News and Information”, “Media Release: Tax Insights Calculator”.
Source: D-H. 8.27.2012