Massachusetts Gets 'D' In Tax Friendliness: Report

MASSACHUSETTS — If the average family moved from Virginia to Massachusetts, they would pay an additional $1,651 in taxes, thanks to the Bay State's high state and local tax burden.

The finding led researchers to give Massachusetts a grade of "D" for tax friendliness in MoneyGeek's annual state tax analysis released Friday. The state's state a local tax burden was 11.8 percent, above the national average of 9.8 percent.

The report found a correlation between lower tax rates and increases in population between 2019 and 2020. In Massachusetts, population growth was flat in 2020, while the 10 states the report said were most tax friendly had an average population increase of 0.9 percent.

"For many, the pandemic has altered their perceptions about where they want to live and where they can live. Millions of city-weary residents aching for more space have moved since the start of the pandemic," the report said. "The lower the state and local tax burden, the higher the population growth in 2020."

Illinois was the least tax friendly state, according to the report, while Wyoming had the lowest state and local tax burden for residents. Massachusetts was the 12th least tax-friendly state.

Read the complete MoneyGeek state and local tax analysis.