Pennsylvania ranks 20th in combined tax burden

Where you live can make a big difference in how much you pay in taxes, according to MSN Money, a Web site that covers financial news.

The Web site recently did an analysis of the combined tax burden in all 50 states and came up with "The best and worst states for taxes" ranking.

Pennsylvania ranks No. 20 on the combined state/federal tax burden, which factors in property, gasoline, tobacco, sales and state income taxes. If you look at just state taxes, Pennsylvania ranks No. 24 out of the 50 states.

The state in which residents pay the most in combined state, local and federal taxes, per capita, is Connecticut (38.3%), followed by New York (37.1%), New Jersey (35.6%) and Nevada (35.2%), according to MSN.

Oklahoma residents pay the least (27.8%), followed by those in Alabama (28.0%) and Alaska (28.1%), according to the Web site.

And guess what? We're all paying more in taxes (and that's not factoring in potential tax hikes if Hillary Clinton or Barack Obama become president).

"The U.S. average for state and local taxes in 2007 was 11%, up from 10.8% in 2006," MSN Money says. "The average combined state, local and federal tab for 2007 was 32.7%, up from 32.3% in 2006 and 30.7% in 1980."

Some other interesting numbers from the analysis:

Five states have no sales tax -- Alaska, Montana, Delaware, New Hampshire and Oregon.

For 2007, the state with the lowest sales tax rate is Colorado (2.9%); the highest is California (7.25%).

Among the sales-tax majority, every state but one (Illinois) exempts prescription drugs, while 31 states exempt food.