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Florida, which has long lured newcomers with promises of sunshine and low taxes, is cementing its reputation.
The Tax Foundation, a conservative research group in Washington, has rated Floridians' state and local tax burden 45th among the states, down from 42nd in 1999.
That works out to $2,939 in state and local taxes per Floridian, compared with a U.S. average of $3,490. The state's residents paid 8.8 percent of their personal incomes in state and local taxes last year, compared with the national average of 10 percent. New York residents, who topped the list, paid 12.9 percent.
Only five states ranked lower than Florida: Texas, Tennessee, Delaware, New Hampshire and Alaska. Alaska always comes in last because the state relies heavily on oil extraction taxes, which are passed on to everyone at the gas pump, Tax Foundation president Scott Hodge said.
But Alaska is not the only state exporting some of its tax burden. The foundation's analysis also gives Florida credit for passing along some of its tax load to tourists, who pay sales, gasoline, auto rental and hotel taxes while they are in the state. A rebound in tourism last year is one reason Florida dropped on this year's list, Hodge said.
"The share of the state's taxes borne by Florida's citizens is shrinking slightly, and that will affect the national ranking," he said.
Tax increases in other states also had an impact. Nevada, which had been below Florida, jumped up to 30th place after raising taxes.
The foundation calculates its rankings based on actual tax collections rather than on tax rates. California fell in the rankings partly because the collapse of the high-tech boom hurt income tax collections, particularly taxes on capital gains and stock options.
Florida always has been low on the list because it has no state income tax. Some other taxes, such as gasoline and cigarette taxes, also are below national averages.
Floridians' tax burden in this survey was the lowest since 1985. The burden has been falling since 1994, when it peaked at 9.9 percent of income.
A state's relative tax burden is something people and businesses consider when they are thinking of relocating. It is one of the reasons Florida ranks seventh in the nation in business tax climate, according to another foundation study.
Clearwater retiree Jim Brown said low taxes and warm weather drew him to Florida in 1978. Brown, 80, said he had enough of paying high state taxes when he was in the Army.
"South Carolina had a state income tax you had to pay even though you were military," he said. "Maryland had that kind of thing, too, and Virginia was worse. We're in a very good state when it comes to this."
Mary Lee Fisher, 60, echoed his comments, saying taxes were one reason she moved from Maryland to Florida in 1983.
"We were much more taxed there," the St. Petersburg retiree said. "I can understand why people feel overtaxed and want to enjoy our sunshine and our tax benefits."
The flip side of low taxes is that they limit the services state and local governments can provide unless they find other ways to raise money. State lotteries have filled some of the gap in some states, including Florida.
Still, critics say the state's economic progress will be held back unless Floridians are willing to spend more on education.
Although they get a break on state and local taxes, Floridians pay federal taxes that are close to the national average. They pay more than average in income and estate taxes and less in Social Security taxes.
When federal, state and local taxes are added together, the total tax burden of Floridians is close to the national average - 27 percent of income compared to 27.8 percent nationally.
Hodge said people who are considering a relocation should look beyond the tax burden. It's important to know which taxes a state has and how they are structured, he said.
"Tax burden is only one part of the story," he said, "and it can be a misleading indicator."
- Helen Huntley can be reached at huntley@sptimes.com or 727 893-8230.