On the face of it, Victoria appears to be Australia's highest taxed state.
Victorians are paying more per person in tax than any other state in Australia. New data from the Australian Bureau of Statistics (ABS) has revealed the Andrews Government and councils collected an extra $7.3bn in land tax, stamp duty, rates and other charges in the last financial year alone.
The IPA State Business Tax Calculator shows that the Northern Territory, with no land taxes, has the lowest business taxes in Australia.
What State Has the Highest Income Tax? California has the highest state income tax, with a rate of up to 13.3%. California has graduated-rate income taxes that range from 1% to a 13.3% tax rate on income of more than $1 million.
Conclusion. The tax rates in Australia are among the highest in the world. Compared to the US, high earners will be paying far higher rates on much lower incomes. However, compared to the UK, Australia's tax rates are on par, or slightly lower.
The cost of living in Australia is, on average, 21% higher than the cost of living in the UK. And the average salary in Australia is 17.4% higher than this in the UK. Hence, it is safe to say that life in the UK is slightly easier (apart from the cold, rain and darkness, that is).
Housing, transportation, food and drink, and healthcare are the major expenses to consider when comparing the two countries. While the cost of living in Australia is generally higher than in the UK, it offers a high quality of life and a great lifestyle.
New York has the highest state income tax burden out of any other state. In 2020, the state collected income taxes that amounted to 4.7% of per capita personal income, or nearly $3,500 per person.
Alaska had the lowest average overall tax burden – measured as total individual taxes paid divided by total personal income – at 5.4%, followed by Tennessee (6.3%), New Hampshire (6.4%), Wyoming (6.6%) and Florida (6.7%).
Côte d'Ivoire is the highest taxed country in the world. Are its citizens' quality of life reflected in the high taxes they pay compared to other countries making the top of the 'highest taxed countries' list?
After maintaining the highest standard of community well-being for seven consecutive years, it comes as no surprise that the Australian Capital Territory (ACT) cemented itself as the best place to live in Australia.
The main reason Australia ranks so highly on individual income tax levels is because Australians don't pay separate social security taxes. These account for an average 25.9% of total tax revenue, or close to 9% of GDP, across the OECD.
Based on 2019 data and including state taxes, we are the eighth-lowest country in the OECD for tax collection relative to our economy's size, with tax revenue at 28% of GDP compared with the OECD average of 33%.
Taxes paid to Australia generally tend to be higher than US taxes due. The highest Australian tax rate is 45%, whereas the highest US tax rate is 37%.
Income tax in Australia is imposed by the federal government on the taxable income of individuals and corporations. State governments have not imposed income taxes since World War II. On individuals, income tax is levied at progressive rates, and at one of two rates for corporations.
In Australia, the average single worker faced a net average tax rate of 23.0% in 2022, compared with the OECD average of 24.6%. In other words, in Australia the take-home pay of an average single worker, after tax and benefits, was 77.0% of their gross wage, compared with the OECD average of 75.4%.
As of 2022, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming are the only states that do not levy a state income tax. Note that Washington does levy a state capital gains tax on certain high earners.
MoneyGeek's analysis found that Wyoming is the most tax-friendly state in America, followed by Nevada, Tennessee, Florida and Alaska. States that received a grade of A all share something in common: no state income tax.
Though Texas has no state-level personal income tax, it does levy relatively high consumption and property taxes on residents to make up the difference. Ultimately, it has a higher effective state and local tax rate for a median U.S. household at 12.73% than California's 8.97%, according to a new report from WalletHub.
Among the countries with the lowest tax rates in the world are Malta, Cyprus, Andorra, Montenegro and Singapore. Aside from zero income tax, in Antigua and Barbuda, individuals are also free from paying taxes on wealth, capital gains, and inheritance.
While Australia is 9,443 miles away from the UK, it has a more relaxed work/life balance, higher wages and good investment opportunities. As the primary language is English, adjusting to Australian living is far easier than moving to a non-English-speaking country.
Generally, Australia has a strong job market with low unemployment rates, while England's job market can be more competitive in certain industries and regions. Australia and England both have strong industries, such as finance, healthcare, and technology.
Australia is one of the most popular destinations for British expats. Perhaps it's the climate, the common language, or the promise of barbecues at Christmas.