The Tax Foundation recently released their 2009 Tax Freedom Day Study.  It measures how many days the average worker must work to  pay taxes. There is a wide disparity among states. The tax burden you bear can significantly impact your quality of life.

The Best State for Tax Freedom is Alaska where it takes 82 days almost 25% of the year just to pay taxes.  Louisiana, Mississippi, South Dakota, North Dakota and West Virginia are also rated Best States for Tax Freedom.  If you are not retired, these states would be considered as candidates for Best States to Work.

The Worst State for Tax Freedom is Connecticut where it takes 120 days or until April 30 to pay taxes.  If you live in Connecticut 1/3 of your time every year goes to pay taxes to the Federal, State and Local governments.  That is almost 50% more days than Alaska.  New Jersey, New York, California and Maryland are also rated Worst States for Tax Freedom.

According to the Tax Foundation study, five major categories of tax dominate the tax burden. Individual income taxes, both federal and state, require 38 days' work. Payroll taxes take another 27 days' work. Sales and excise taxes, mostly state and local, take 15 days to pay off. Corporate income taxes take 6 days, and property taxes take 12. Americans will log 4 more days to pay other miscellaneous taxes, most notably including motor vehicle license taxes and severance taxes, and about 1 day for estate taxes.

What state you live in is very important in determining your lifestyle as higher cost of living states tend to have higher tax burdens.  Lower disposable income is the result.  Many states are also increasing many taxes due to economic conditions which will increase tax burdens.  Noteworthy examples are the proposed increases in New York and California that will make these heavily burdened states more undesirable to live.  If you are not retired, New York and California would have to be considered as 2 of the Worst States to Work.

			Tax
	State	Days	Freedom Day
1	Alaska	82	23-Mar
2	Louisiana	87	28-Mar
3	Mississippi	87	28-Mar
4	South Dakota	88	29-Mar
5	North Dakota	91	1-Apr
6	West Virginia	91	1-Apr
7	Alabama	92	2-Apr
8	New Mexico	92	2-Apr
9	Montana	93	3-Apr
10	Kentucky	93	3-Apr
11	Oklahoma	94	4-Apr
12	Iowa	94	4-Apr
13	South Carolina	94	4-Apr
14	Arkansas	94	4-Apr
15	Tennessee	95	5-Apr
16	Wyoming	95	5-Apr
17	Missouri	96	6-Apr
18	Maine	96	6-Apr
19	Texas	96	6-Apr
20	Nebraska	98	8-Apr
21	Kansas	98	8-Apr
22	Nevada	98	8-Apr
23	Indiana	98	8-Apr
24	Florida	99	9-Apr
25	Oregon	99	9-Apr
26	North Carolina	99	9-Apr
27	Michigan	100	10-Apr
28	Arizona	100	10-Apr
29	New Hampshire	100	10-Apr
30	Ohio	101	11-Apr
31	Delaware	101	11-Apr
32	Vermont	102	12-Apr
33	Idaho	102	12-Apr
34	Georgia	102	12-Apr
35	Colorado	102	12-Apr
36	Illinois	103	13-Apr
37	Hawaii	103	13-Apr
38	Utah	103	13-Apr
39	Wisconsin	103	13-Apr
40	Pennsylvania	104	14-Apr
41	Rhode Island	104	14-Apr
42	Minnesota	105	15-Apr
43	Washington	106	16-Apr
44	Massachusetts	106	16-Apr
45	Virginia	106	16-Apr
46	Maryland	109	19-Apr
47	California	110	20-Apr
48	New York	115	25-Apr
49	New Jersey	119	29-Apr
50	Connecticut	120	30-Apr

Source: Tax Foundation, Tax Freedom Day
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