The Best and Worst States for Taxes

As if paying federal taxes is not bad enough, you also have to take care of those imposed by your state. If you don’t know anything about state taxes you may find yourself struggling to stay on top of things. Just as you owe money to the IRS every year, based on your income, your state expects the same. Along with this, you probably have to pay taxes to your municipality as well.

Of course, some state taxes are better than others. This means that some states tax at a lower rate which often time attracts people from other areas of the country. The IRS tax system is the same for everybody in the United States. States have the right to impose their own system.

Before we go any further, you should know that some states do not have any income tax. They include: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

Requesting a Copy of Your Past Tax Return: Step-by-Step

If you are not living in a state with no income tax you should know what you are being charged. States with a flat rate individual income tax include: Colorado (4.63 percent), Illinois (3 percent), Indiana (3.4 percent), Massachusetts (5.3 percent), Michigan (4.35 percent), Pennsylvania (3.07 percent) and Utah (5 percent). These state taxes are among the lowest in the country.

At this time, Hawaii and Oregon are the two worst places to live when it comes to state taxes. They both impose a state tax rate of 11 percent. 

These are some of the best and worst states for taxes. If you are trying to avoid income tax, you should live in one of the nine states do not have this tax. Regardless of where you live, you should always keep in mind that you have to pay state taxes in addition to federal and local taxes.

How to Be Smart with a Second Mortgage

Do you need extra money, but have nothing in the back to draw on? In this case, you may want to consider a second mortgage. Before you do this you need to know the pros and cons of a second mortgage, how it will affect you now and in the future, and what you can do to ensure a successful transaction.

Generally speaking, a second mortgage is nothing more than another mortgage on your home. It acts as another loan secured against your property.

Why would anybody want to risk their home by taking out a second mortgage? There are many reasons why second mortgages have become so popular. For one, when you borrow against your home you can get a bigger loan.

There are many reasons for taking out a second mortgage with some of the most common being: to avoid private mortgage insurance, make home repairs, purchase another property (vacation home), and to create a home equity line of credit.

A second mortgage is not something you should jump into without thinking about the future ramifications. While there are many benefits to getting a second mortgage, you need to be smart about the decision you make.

The biggest potential drawback of a second mortgage is that you are risking your home if you get in a bind and are unable to pay back the loan. Additionally, you can expect to pay a higher interest rate on your second mortgage as compared to the original loan.

Options for Homeowners Facing Bank Foreclosures


Before taking out a second mortgage consider the pros and cons, as well as your financial situation. Will you be able to comfortably pay both mortgages, month after month?

If you have equity in your home a second mortgage is a consideration. Before you move forward make sure you are totally aware of the pros and cons of second mortgages, and how your finances will be affected.