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Honolulu ranks 42nd
in country for tax burden

Star-Bulletin staff

Honolulu may not be as high up the tax-burden ladder as many believe, when all forms of taxes are taken into account, according to a new survey.

In a list of 51 U.S. cities, Honolulu ranked 42nd, well below the tax leader, New York, the Runzheimer International survey said.

Peter D. Packer, a Runzheimer spokesman, said the high price of housing in Honolulu actually lowers the total tax burden because a high mortgage also means a higher tax deduction for mortgage interest. Also, Honolulu's real property tax rate is lower than most areas, he said.

Rochester, Wis.-based Runzheimer studied taxes for a suburban family of four with $60,000 in annual income. New York's high city and state taxes, high property tax and a sales tax of 7.75 percent gave it the highest tax burden, with $16,362 in taxes, or 27.3 percent of the family's income.

Honolulu's tax burden works out at $12,679, or 21.1 percent.

At the low end is Casper, Wyo., where there is no state income tax. Its tax burden is $11,342, or 18.9 percent of family income.