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💵 Today’s Top Stories
In Arkansas, home of Walmart, you can get $108 worth of goods for $100. But in another state, $100 only gets you about $77 worth of groceries. Here are the five most and least affordable states for groceries. Read more.
The insurance company is not your friend, even on a claim. Don’t take the money in this way, Clark says. Here’s how to get the most out of your rights. Read more.
Always start by pre-qualifying for financing from a credit union, Clark recommends. Here are the other things he says you should do to successfully buy a good used vehicle. Read more.
Team Clark evaluated dozens and dozens of banks to identify the best free checking accounts in America. Is your bank on this list? Read more.
🌴 State Income Taxes Vary Widely By Location
The marginal state income tax rates in the United States and Washington D.C. range from 0% to 13.3%.
So the state in which you live can make a tax difference of more than 13 cents for every dollar you earn.
Nine states do not levy a state income tax at all:
Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington*
Wyoming
*Still charges a capital gains tax of 7% up to $1 million and 9.9% beyond $1 million.
Mississippi, currently at 4.0%, aims to eliminate its state income tax by 2040 if it meets certain economic targets.
The good news is that 26 states have reduced individual income tax rates since 2021.
But these are the five worst offenders when it comes to state (or district) income tax, listed by the top possible marginal income tax rate:
51. California: 13.3%
50. Hawaii: 11.0%
49. New York: 10.9%
48. District of Columbia: 10.8%
47. New Jersey: 10.8%
In California, you need to make $1 million of taxable income to pay the top marginal tax rate of 13.3%.
At 2.5%, Arizona (flat income tax) and North Dakota (graduated-rate income tax) charge the lowest rates of the 41 states that levy income taxes.
📊 Stat of the Day
🙃 30.5%: Share of car buyers with a trade-in who owe more than the trade-in is worth, or are “upside-down.” The best way to avoid negative equity is to follow Clark’s rule for the maximum auto loan term.
💰 Deal Alert: Today’s Top Deals
🎙 Podcast
Adjustable-rate mortgages (ARMs) are booming again, but Clark has a major warning: this "oldie but baddy" could be a financial time bomb for your household. Clark breaks down why banks are pushing ARMs, who they actually work for (hint: it’s probably not who you think), and the "reset" risk that could cost you your home. Also, many Americans are skipping meals just to pay for healthcare. Clark discusses why catastrophic-only plans might be a dangerous gamble and identifies the real culprit behind our skyrocketing medical bills.
☎ Need Money Help?
The Team Clark Consumer Action Center is a free helpline that can help you navigate your money questions. Call 636-492-5275. Visit clark.com/cac for more information.
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