2 March 2013, (MarketWatch)

1. Bridgeport, Conn.
2. Philadelphia, Pa.
3. Columbus, Ohio
4. Louisville, Ky.
5. Chicago, Ill.
6. Newark, N.J.
7. New York, N.Y.
8. Los Angeles, Calif.
9. Detroit, Mich.
10. Baltimore

Tax season is here and, according to a recent report, American families in the nation’s largest cities will be shelling out 15% or more of their income, and that doesn’t even include federal taxes. The report, released by the Office of Revenue Analysis of the Government of Washington, D.C., reviewed the estimated property, sales, auto and income taxes a family paid in 2011 in the largest city in each state. The differences were stark. A family of three earning $75,000 in Cheyenne, Wy., paid just $2,808, or 3.7% of its income. In Bridgeport, Conn., that same family would have paid $16,105, or 21.5% of its income, excluding federal taxes. From a review by 24/7 Wall St., these are the U.S. cities with the highest tax burdens:

1. Bridgeport, Conn.

Taxes for family earning $25,000: $3,708 (5th highest)

Taxes for family earning $150,000: $23,501 (the highest)

Unemployment rate: 11.7% (3rd highest)

No city taxed its residents more heavily than Bridgeport in 2011. In 2011, its effective residential property tax rate was $2.77 per every $100 in assessed home value—the sixth highest in the nation. Citizens are also paying more in property taxes, due to the high value of homes in the area, at over $434,000 for a person earning $150,000 a year. In defending his city to the Connecticut Post, Bridgeport Mayor Bill Finch noted the average resident paid only $6,431 in taxes a year and notes that the city’s residents are “of modest means” and that residents’ tax rates are also affected by the proximity of far wealthier cities. The median household income in Bridgeport is just $35,379, more than $15,000 below than the national median.

2. Philadelphia, Pa.

Taxes for family earning $25,000: $4,513 (2nd highest)

Taxes for family earning $150,000: $19,951 (2nd highest)

Unemployment rate: 10.6% (7th highest)

A family of three that made just $25,000 a year in 2011 would have been stuck with a tax burden worth a whopping 18.1% of their income, tied with Birmingham, Ala., for the highest of all cities. Taxes did ease a bit as one moved down the sliding scale, although burdens were still near the top. For a family of three making $150,000 in 2011, the total tax burden was 13.3%—the second highest of all cities measured by the report. Read more about cities with the highest (and lowest) taxes at 24/7 Wall St.http://247wallst.com/2013/02/25/american-cities-with-the-highest-an...

3. Columbus, Ohio

Taxes for family earning $25,000: $3,369 (12th highest)

Taxes for family earning $150,000: $18,241 (4th highest)

Unemployment rate: 6.5% (23rd lowest)

Columbus residents are hit by the one-two punch of sales and property taxes that are higher than most. For instance, a family of three earning $50,000 in 2011 had to fork over $2,116.50 in income taxes and had to pay an additional $4,025 in property taxes. The income tax burden was higher than all but four cities, while the property tax burden was higher than all but five. Not all is bad, though. The sales tax and auto tax burden across all incomes were in the lower half of cities reviewed.

4. Louisville, Ky.

Taxes for family earning $25,000: $3,594 (8th highest)

Taxes for family earning $150,000: $18,008 (5th highest)

Unemployment rate: 7.9% (20th highest)

For a family of three that earned between $100,000 and $150,000, the average tax burden was 12%, higher than all but four other cities reviewed. The tax burden for people earning $25,000 to $50,000, although higher at 14.4%, is less of jump compared with most of the cities on this list. The 14.4% tax burden is the eighth highest out of all the cities measured. The biggest tax burden comes from income taxes. Depending on a family’s income, Louisville has either the second or third highest income tax among all cities measured.

5. Chicago, Ill.

Taxes for family earning $25,000: $3,898 (4th highest)

Taxes for family earning $150,000: $14,814 (14th highest)

Unemployment rate: 9.7% (12th highest)

As of 2011, Chicago residents paid the highest effective sales tax rate of any city studied, at 9.75%. This increased the tax burden for lower-income earners, who paid a higher percentage of their income in sales taxes. Partly because of the city’s sales tax, a Chicago family earning $25,000 had a state and local tax burden equal to 15.6% of their income, while for a family earning $150,000, the figure was just 9.9%. Poorer residents are also burdened by the state-level flat income tax, which was raised from 3% to 5% in 2011.

6. Newark, N.J.

Taxes for family earning $25,000: $2,999 (25th highest)

Taxes for family earning $150,000: $16,032 (8th highest)

Unemployment rate: 7.6% (23rd highest)

Newark residents can expect to pay a substantial share of their income to the government. Not all taxes are high in the city. Newark residents don't pay state or local income tax. Newark also has either the lowest or second lowest auto taxes of all cities measured, depending on a family’s income, and is also in the lower half of cities in terms of sales tax. However, Newark residents are hammered through property taxes—for families making more than $50,000 a year in 2011, property taxes were the second-highest among all cities measured.

7. New York, N.Y.

Taxes for family earning $25,000: $3,273 (16th highest)

Taxes for family earning $150,000: $18,8111 (3rd highest)

Unemployment rate: 8.8% (16th highest)

Among the cities measured, only New York City had graduated state and local income-tax rates as of 2011. This means that the income-tax rate rises as individuals’ earnings rise. In 2011, a family of three with two working parents earning $25,000 a year paid no income tax while a similar family earning $150,000 per year paid $12,464 in income tax—more than such a family would pay in any other city reviewed. No other city measured had a higher city-level sales tax than New York City’s 4.5%. This contributes to an effective sales tax rate of 8.875%, among the nation’s highest. According to the Nelson A. Rockefeller Institute of Government, in the fiscal year 2009-2010 New York City residents paid about $4.1 billion more in taxes than they received in government services.

8. Los Angeles, Calif.

Taxes for family earning $25,000: $3,425 ( highest)

Taxes for family earning $150,000: $15,764 (9th highest)

Unemployment rate: 11.3% (4th highest)

For all levels of income, Los Angeles has one of the highest property tax burdens on its residents among the largest cities. This is despite the city’s low effective property tax rate, which at $1.13 per $100 was one of the lowest for all cities. In 2011, Los Angeles had the highest assumed home value—used to calculate property tax payments—for each income bracket between $50,000 and $150,000. In addition to high property taxes, Angelenos also pay one of the highest total sales tax rates, at 8.75 cents on the dollar—more than two cents over the average city sales tax.

9. Detroit, Mich.

Taxes for family earning $25,000: $3,270 (17th highest)

Taxes for family earning $150,000: $15,522 (10th highest)

Unemployment rate: 18.2% (the highest)

Detroit residents have among the highest tax burdens of all cities, but it is especially high for those with higher incomes. For families of three earning over $75,000, Detroit’s income taxes are among the top five of all the cities reviewed. The high tax burden on its residents has not translated into a healthy economy—Detroit’s finances are still in havoc. A state review found that the city has more than $14 billion in long-term liabilities and a budget deficit of at least $327 million annually. Michigan Governor Rick Snyder will decide in the coming weeks whether to have the state intervene to help rebuild the city, with options including Chapter 9 bankruptcy on the table.

10. Baltimore

Taxes for family earning $25,000: $2,703 (13th lowest)

Taxes for family earning $150,000: $17,134 (6th highest)

Unemployment rate: 9.9% (10th highest)

Baltimore has one of the highest income tax burdens of all the cities. In 2011, a family of three earning $50,000 would have paid $1,818 in income taxes, the ninth highest burden of all largest cities. For a family earning $100,000, the income tax burden was $5,511, the sixth highest. In addition, property taxes in the city were higher than most other largest cities, especially for higher-income families. It is also the largest property tax in the state. According to the Baltimore Sun, mayor Stephanie Rawlings-Blake has expressed interest in lowering the city’s property tax rate to make it more competitive. Read related column from Robert Powell, the most tax-friendly states for retirees. http://www.marketwatch.com/story/the-most-tax-friendly-states-for-r...