Report: Ohio’s tax burden plays role in slower population growth
(The Center Square) – If Ohio wants to energize a recent trend in slow population growth, the state might consider lowering taxes based on a new study that shows states with lower tax burdens generally are seeing higher population increases.
MoneyGeek, a personal finance technology company, recently released an analysis of tax rates from each state to find specific tax burdens. The analysis also revealed a connection with lower tax burdens and population growth.
Ohio received a grade of C for tax burden. The state’s estimated tax burden is $8,999 annually, according to the report, combining property, income and sales tax to a come up with a 10.8% rate, above the national average of 9.8%.
The Buckeye State’s tax burden is lower than Pennsylvania and Michigan but higher than neighboring West Virginia, Indiana and Kentucky.
The report showed property tax is the majority of Ohio taxes paid, and the state has the 13th-highest effective property tax rate in the country.
Ohio’s population has grown at a slower rate over the past two years than at any time in the past 10 years. The 2019 and 2018 growth rates were 0.13%, lower than the 2017 rate of 0.22%, according to figures from the U.S. Census Bureau. In 2020, the state’s population fell 0.03% from 2019.
While Ohio remains the seventh-largest state in the nation and one of only nine states with at least 10 million residents, it’s expected to lose a seat in Congress when census numbers are released.
Overall, the report showed four of the five most tax friendly states – Wyoming, Nevada, Florida and Tennessee – experienced population growth at or above the national average.
Illinois, Connecticut and New Jersey are among the worst tax-friendly states and all experienced population declines in 2020.
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