According to an article in The Kiplinger Report, the five most expensive US States to live in are California, Hawaii, New York, New Jersey, and the District of Columbia.

California

Not surprisingly, California takes first place as the most expensive state for millionaires. The Golden State recently raised its top income tax bracket by 1.1%, from 13.3% to 14.4%.  But California was the most expensive state for high earners last year, too, before the increase took effect.

Hawaii

Hawaii is an expensive state for high earners to live in. The top income tax rate is 11%. And notably, you don’t need to be a millionaire for the state to tax some of your income at that rate.

• Single and married filing separately taxpayers will pay 11% on more than $200,000 of taxable income.
• Heads of household pay the 11% tax rate on more than $300,000 of taxable income.
• Joint filers pay 11% on more than $400,000 of income.

New York

It’s no surprise that New York taxes high earners at one of the highest rates in the U.S. The top income tax bracket in the state is 10.9%. However, only taxpayers with taxable incomes greater than $25 million fall into this bracket. If your taxable income falls between $1 million and $25 million, you can expect to be subject to a tax rate of anywhere between 6.85% and 10.3%, which is still high compared to most other states.

• New York City imposes an additional income tax, which can reach 3.876%
• This means millionaires in New York City could pay an income tax rate of 14.776%. If NYC was its own state, it would have taken the number one spot on this list.

New Jersey

At 10.75%, New Jersey taxpayers with more than $1 million in taxable income can expect to hand over a good chunk of change to the state. This top state income tax rate used to only apply to earners with taxable income exceeding $5 million, but it now applies to taxpayers making over $1 million.

• If your taxable income exceeds $500,000 you can still expect to pay an 8.97% income tax rate in New Jersey.
• New Jersey also has a”‘mansion tax.” This is an additional 1% tax imposed on real estate sales exceeding $1 million.

District of Columbia

Although Washington D.C. isn’t a state, it earns a spot on this list. That’s because you will pay a 10.75% on taxable income over $1 million in the District of Columbia. And the tax rates aren’t much better for six-digit earners.

• Taxpayers in Washington D.C pay an 8.5% tax rate on taxable income over $60,000.
• You are subject to a 9.25% tax rate on taxable income over $250,000.
• The District of Columbia imposes a 9.75% tax rate on taxable income over $500,000.

Go to Kiplinger Report To Read Article In Its Entirety.

Article attribution to The Kiplinger Report which lists 10 Most Expensive States with author credit to Katelyn Washington. Thank you.