Monday, December 9, 2013

The Cost Of Living In Connecticut Is Among The Highest In The USA

By Matt Baumberger


The cost of living in Connecticut is very high compared to other states. Relocating there should be done so with caution. It is just as expensive to live in Stamford, CT as it is to live in Manhattan, New York. Alaska is the most expensive state to live in followed by Hawaii and then good ole' Connecticut. Below are some factors that affect the high cost of living the state.

Purchasing a home in this state is very expensive, affecting the cost of living in Connecticut. $231,300 is what the average home costs in Connecticut for the past five years. This is a very high home value for a state the size of CT. Massachusetts, New York and California are the only states with a higher average home value. For the past four years, $161,600 was the average home value in the nation. $61,700 less than a house in Connecticut. But, this makes selling a home in Ct very profitable. If you have owned a home for the past decade in Connecticut, you could make a great profit if you sell in today's market. But, you would have to purchase another home if you stayed in the state which would cost you.

Taxes can be thanked for helping increase the cost of living in Connecticut. But, Connecticut also has the highest income per capita so the high taxes are a effect of this. The average Connecticut home grossed $57,902 in 2011 according to research done by the Bureau of Economic Analysis.

There are two different gas taxes charged to Connecticut residents. One is an excise tax, which is 25 cents on every gallon of gasoline. The other one is a Gross Receipts tax on petroleum products. The tax is 7.53% on these products. Social Security is also taxed by CT. If you gross less than $50,000 as a single tax filer or less than $60,000 as a joint tax filer, you can be fully exempt from this tax. High property taxes also affect the cost of living in Connecticut. Connecticut is ranked 3rd in the nation for highest property taxes. New Hampshire and New Jersey are the only states with more expensive property taxes. Motor vehicles are also taxed along with an income tax. The top tier is 6.87% for a household earning $500,000 or more. a 6.35% sales tax is applied to all sales in CT.

The cost of living in Connecticut is greatly influenced by foo d and transportation costs. $9.75 will by you a fast food meal, from a McDonald's type restaurant. $45.00 will purchase you a meal for 2 at a Chili's type restaurant chain without drinks. An average domestic beer will cost you $3.50 and a bottle of water is $1.29.

Transportation can be an expensive day to day cost. A taxi ride will, on average, cost you $2.62 base price. You will then be charge an average of $1.15 per km for the rest of the ride. A monthly pass, good for taxi or bus, costs $47.00 on average. Gas costs $370 a gallon.

You can blame this high cost of living on things ranging from real estate to day to day expenses like meals and gas. The little New York bedroom community in the southwest corner of the state is extremely wealthy, a big cause for all the high taxes and costs. Although the climate is ideal and the job market is growing, the cost of living in Connecticut is 14.4% higher than the United States average. This could be a big change for anyone, especially someone from the southern United States.




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