PRESTONSBURG – A recent study by SmartAsset calculated the amount of money a specific person would pay in income, sales, property and fuel taxes in each county in Kentucky, and ranked them lowest to highest in terms of tax burden.
SmartAsset is a financial technology company that uses data to provide financial data concerning home-buying, retirement-planning and life insurance needs.
The study, released Wednesday, shows Floyd County as being in the number nine spot in the top ten counties with the lowest tax burden. Statistics from the study show that Floyd residents have an average income tax of $10,552, sales tax of $933, property tax of $1,714, and fuel tax of $205.
To better compare income tax burdens across counties, the company said, the study used the national median household income, applied relevant deductions and exemptions before calculating federal, state and local income taxes.
When dealing with the sales tax burden the study estimated that 35% of take-home (after-tax) pay is spent on taxable goods. Its reports multiplied the average sales tax rate for a county by the household income less income tax. This product was then multiplied by 35% to estimate the sales tax paid.
To determine property tax, the study divided each county’s median property tax paid by median property value to determine the median property tax rate by county. This was then applied this to a hypothetical $250,000 property in each county.
Using the nationwide average fuel economy, the study calculated the average gallons of gas used by each driver in each county and multiplied that by the fuel tax.
The study covered more than 3,300 counties across the nation, while Kentucky has a progressive income tax with rates that are slightly higher than the national average. Both sales and property taxes are below the national average.
Rounding out the top ten counties were Elliott, Carter, Knott, Edmonson, Bell, Lawrence, Martin, Lewis, and Fleming County.