If paying taxes every year makes you think about moving, consider the state and local tax burden, which varies from state to state.
Tax Day — April 15 — is looming in the United States. While federal income taxes apply everywhere, state and local taxes vary state by state. The differences in the total tax burden among the 50 states, as a proportion of personal income, can make a significant impact on a household budget.
A study by WalletHub measured the share of personal income paid by residents in individual income taxes, property taxes, and sales and excise taxes (those levied on goods and services), and ranked every state by its total tax burden. The data for the rankings were drawn from the Urban-Brookings Tax Policy Center, a nonprofit that analyzes tax issues.
New York State’s tax burden was highest, over 12 percent. Hawaii, Vermont, Maine and California followed, each topping 10 percent. At the other end of the scale, Alaska has a tax burden less than half of New York’s, or slightly below 5 percent. New Hampshire, Wyoming and Florida followed, all roughly six percent.
Important to homeowners, Maine, Vermont and New Jersey were found to have the highest property taxes. Sales and excise taxes combined were highest in Washington, followed by Nevada and Hawaii — exceeding 5 percent of personal income in each.
This week’s chart shows the 15 states with the highest total tax burden and the 15 with the lowest, according to WalletHub.
Taxes, State by State
LOWEST TOTAL TAX BURDEN
HIGHEST TOTAL TAX BURDEN
New York
Hawaii
Vermont
Maine
California
Connecticut
Minnesota
Illinois
New Jersey
Rhode Island
Utah
Kansas
Maryland
Iowa
Nebraska
12.02%
11.80%
11.12%
10.74%
10.40%
10.08%
9.95%
9.67%
9.47%
9.38%
9.35%
9.29%
9.26%
9.21%
9.16%
Georgia
Texas
Alabama
Montana
South Carolina
Nevada
Oklahoma
North Dakota
South Dakota
Delaware
Tennessee
Florida
Wyoming
New Hampshire
Alaska
7.65%
7.56%
7.52%
7.50%
7.50%
7.37%
7.04%
6.80%
6.44%
6.43%
6.07%
6.05%
5.70%
5.63%
4.93%
HIGHEST TOTAL TAX BURDEN
New York
Hawaii
Vermont
Maine
California
Connecticut
Minnesota
Illinois
New Jersey
Rhode Island
Utah
Kansas
Maryland
Iowa
Nebraska
12.02%
11.80%
11.12%
10.74%
10.40%
10.08%
9.95%
9.67%
9.47%
9.38%
9.35%
9.29%
9.26%
9.21%
9.16%
LOWEST TOTAL TAX BURDEN
Georgia
Texas
Alabama
Montana
South Carolina
Nevada
Oklahoma
North Dakota
South Dakota
Delaware
Tennessee
Florida
Wyoming
New Hampshire
Alaska
7.65%
7.56%
7.52%
7.50%
7.50%
7.37%
7.04%
6.80%
6.44%
6.43%
6.07%
6.05%
5.70%
5.63%
4.93%
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