Investing
Where Americans Are Paying the Most State and Local Taxes: All 50 States Ranked
Published:
Between sales, property, capital gains, income and other taxes, the federal government collected $4.9 trillion in revenue in fiscal 2022. At an individual level, Americans pay over $10,000 in federal taxes each year on average – not a trivial amount for the typical household.
On top of federal taxes, state and local governments levy their own taxes to raise revenue and fund public works and services. However, exactly what they choose to tax, and by how much, varies considerably, and in some parts of the country, Americans pay far more than others.
Using data from the Tax Foundation, an independent non-profit tax policy research organization, 24/7 Wall St. identified the states where people pay the most state and local taxes. Figures in this story do not include federal taxes.
It is important to note that local tax rates – particularly property and sales taxes – can vary within a state. But based on local averages, combined with taxes levied at the state level, the amount Americans pay in non-federal taxes ranges from about $2,900 to over $12,000 across the 50 states.
In nearly half of all states – 24 out of 50 – the largest share of state and local tax revenue comes from property taxes. Property taxes are typically paid as a percentage of the value of assets like land, houses, and even cars or boats in some circumstances. Many of the states where property taxes tend to be higher are some of the same states with the highest overall tax burden. (These are the states with the highest property taxes.)
Most states levy a personal income tax – but some do not, and in those places, the overall tax burdens tend to be lower than average. The states with no individual income tax make up for lost potential revenue in other areas. Florida, for instance, benefits from sales tax revenue through its tourism industry. Alaska, levies taxes on resource extraction, specifically oil and gas. Of the seven states with no income tax, six rank in the bottom half of the 50 states by per capita tax burden.
Because taxes are levied as a percentage of income, spending, or asset value, the states where people pay the most taxes tend to have higher-earning populations. Notably, each of the five states with the highest average state and local tax bill are also the five wealthiest states, based on per capita income. (This is how much you need to earn to be middle class in your state.)
Click here for a detailed methodology.
50. Alaska
> State & local tax burden: $2,943 per capita
> Est. annual individual income: $65,813 per capita (14th highest)
> Est. state and local effective property tax rate and revenue: 1.0% – 21st highest ($2,276 per capita – 9th highest)
> Approx. state and local sales tax rate and revenue: 1.8% – 2nd lowest ($335 per capita – 2nd lowest)
> State income tax collections: $0 (the lowest; tie)
> Largest source of state and local tax revenue: Property tax (50.3% of all tax revenue)
[in-text-ad]
49. Tennessee
> State & local tax burden: $4,036 per capita
> Est. annual individual income: $56,560 per capita (18th lowest)
> Est. state and local effective property tax rate and revenue: 0.7% – 14th lowest ($845 per capita – 4th lowest)
> Approx. state and local sales tax rate and revenue: 9.5% – 2nd highest ($1,709 per capita – 9th highest)
> State income tax collections: $26 per capita (2nd lowest)
> Largest source of state and local tax revenue: Sales and gross receipts taxes (45.9% of all tax revenue)
48. Mississippi
> State & local tax burden: $4,220 per capita
> Est. annual individual income: $45,881 per capita (the lowest)
> Est. state and local effective property tax rate and revenue: 0.7% – 15th lowest ($1,167 per capita – 15th lowest)
> Approx. state and local sales tax rate and revenue: 7.1% – 22nd highest ($1,288 per capita – 22nd highest)
> State income tax collections: $853 per capita (7th lowest)
> Largest source of state and local tax revenue: Sales and gross receipts taxes (32.4% of all tax revenue)
47. West Virginia
> State & local tax burden: $4,479 per capita
> Est. annual individual income: $48,488 per capita (2nd lowest)
> Est. state and local effective property tax rate and revenue: 0.6% – 7th lowest ($1,002 per capita – 8th lowest)
> Approx. state and local sales tax rate and revenue: 6.5% – 17th lowest ($811 per capita – 5th lowest)
> State income tax collections: $1,264 per capita (18th lowest)
> Largest source of state and local tax revenue: Other (30.2% of all tax revenue)
[in-text-ad-2]
46. Oklahoma
> State & local tax burden: $4,527 per capita
> Est. annual individual income: $53,870 per capita (9th lowest)
> Est. state and local effective property tax rate and revenue: 0.9% – 24th lowest ($883 per capita – 5th lowest)
> Approx. state and local sales tax rate and revenue: 9.0% – 5th highest ($1,384 per capita – 18th highest)
> State income tax collections: $945 per capita (10th lowest)
> Largest source of state and local tax revenue: Sales and gross receipts taxes (33.2% of all tax revenue)
45. Alabama
> State & local tax burden: $4,585 per capita
> Est. annual individual income: $49,769 per capita (3rd lowest)
> Est. state and local effective property tax rate and revenue: 0.4% – 2nd lowest ($632 per capita – 2nd lowest)
> Approx. state and local sales tax rate and revenue: 9.2% – 4th highest ($1,155 per capita – 16th lowest)
> State income tax collections: $974 per capita (11th lowest)
> Largest source of state and local tax revenue: Sales and gross receipts taxes (30.8% of all tax revenue)
[in-text-ad]
44. South Carolina
> State & local tax burden: $4,596 per capita
> Est. annual individual income: $52,467 per capita (8th lowest)
> Est. state and local effective property tax rate and revenue: 0.6% – 6th lowest ($1,314 per capita – 18th lowest)
> Approx. state and local sales tax rate and revenue: 7.4% – 18th highest ($899 per capita – 7th lowest)
> State income tax collections: $1,051 per capita (12th lowest)
> Largest source of state and local tax revenue: Property tax (32.4% of all tax revenue)
43. Kentucky
> State & local tax burden: $4,669 per capita
> Est. annual individual income: $51,266 per capita (6th lowest)
> Est. state and local effective property tax rate and revenue: 0.8% – 20th lowest ($33 per capita – the lowest)
> Approx. state and local sales tax rate and revenue: 6.0% – 8th lowest ($931 per capita – 9th lowest)
> State income tax collections: $1,156 per capita (14th lowest)
> Largest source of state and local tax revenue: Individual income tax (33.0% of all tax revenue)
42. Wyoming
> State & local tax burden: $4,691 per capita
> Est. annual individual income: $69,666 per capita (10th highest)
> Est. state and local effective property tax rate and revenue: 0.6% – 4th lowest ($2,163 per capita – 12th highest)
> Approx. state and local sales tax rate and revenue: 5.4% – 4th lowest ($1,467 per capita – 16th highest)
> State income tax collections: $0 (the lowest; tie)
> Largest source of state and local tax revenue: Property tax (40.4% of all tax revenue)
[in-text-ad-2]
41. Michigan
> State & local tax burden: $4,720 per capita
> Est. annual individual income: $56,494 per capita (16th lowest)
> Est. state and local effective property tax rate and revenue: 1.4% – 14th highest ($1,594 per capita – 24th lowest)
> Approx. state and local sales tax rate and revenue: 6.0% – 8th lowest ($916 per capita – 8th lowest)
> State income tax collections: $1,194 per capita (15th lowest)
> Largest source of state and local tax revenue: Property tax (37.4% of all tax revenue)
40. Louisiana
> State & local tax burden: $4,762 per capita
> Est. annual individual income: $54,217 per capita (10th lowest)
> Est. state and local effective property tax rate and revenue: 0.6% – 5th lowest ($914 per capita – 7th lowest)
> Approx. state and local sales tax rate and revenue: 9.6% – the highest ($1,729 per capita – 8th highest)
> State income tax collections: $851 per capita (6th lowest)
> Largest source of state and local tax revenue: Sales and gross receipts taxes (39.2% of all tax revenue)
[in-text-ad]
39. New Mexico
> State & local tax burden: $4,835 per capita
> Est. annual individual income: $50,311 per capita (4th lowest)
> Est. state and local effective property tax rate and revenue: 0.7% – 16th lowest ($899 per capita – 6th lowest)
> Approx. state and local sales tax rate and revenue: 7.7% – 16th highest ($2,146 per capita – 3rd highest)
> State income tax collections: $567 per capita (4th lowest)
> Largest source of state and local tax revenue: Sales and gross receipts taxes (43.0% of all tax revenue)
38. Georgia
> State & local tax burden: $4,862 per capita
> Est. annual individual income: $55,786 per capita (13th lowest)
> Est. state and local effective property tax rate and revenue: 0.9% – 25th highest ($1,336 per capita – 19th lowest)
> Approx. state and local sales tax rate and revenue: 7.4% – 19th highest ($979 per capita – 12th lowest)
> State income tax collections: $1,317 per capita (25th highest)
> Largest source of state and local tax revenue: Property tax (32.8% of all tax revenue)
37. Missouri
> State & local tax burden: $4,953 per capita
> Est. annual individual income: $55,325 per capita (11th lowest)
> Est. state and local effective property tax rate and revenue: 1.0% – 22nd highest ($1,114 per capita – 11th lowest)
> Approx. state and local sales tax rate and revenue: 8.3% – 12th highest ($1,163 per capita – 18th lowest)
> State income tax collections: $1,251 per capita (17th lowest)
> Largest source of state and local tax revenue: Sales and gross receipts taxes (29.3% of all tax revenue)
[in-text-ad-2]
36. Texas
> State & local tax burden: $4,994 per capita
> Est. annual individual income: $59,865 per capita (25th lowest)
> Est. state and local effective property tax rate and revenue: 1.7% – 6th highest ($2,216 per capita – 11th highest)
> Approx. state and local sales tax rate and revenue: 8.2% – 14th highest ($1,624 per capita – 12th highest)
> State income tax collections: $0 (the lowest; tie)
> Largest source of state and local tax revenue: Property tax (46.7% of all tax revenue)
35. Indiana
> State & local tax burden: $5,030 per capita
> Est. annual individual income: $56,497 per capita (17th lowest)
> Est. state and local effective property tax rate and revenue: 0.8% – 21st lowest ($1,146 per capita – 13th lowest)
> Approx. state and local sales tax rate and revenue: 7.0% – 24th highest ($1,213 per capita – 22nd lowest)
> State income tax collections: $1,554 per capita (20th highest)
> Largest source of state and local tax revenue: Individual income tax (30.0% of all tax revenue)
[in-text-ad]
34. Arkansas
> State & local tax burden: $5,031 per capita
> Est. annual individual income: $50,625 per capita (5th lowest)
> Est. state and local effective property tax rate and revenue: 0.6% – 12th lowest ($798 per capita – 3rd lowest)
> Approx. state and local sales tax rate and revenue: 9.5% – 3rd highest ($1,668 per capita – 11th highest)
> State income tax collections: $1,146 per capita (13th lowest)
> Largest source of state and local tax revenue: Sales and gross receipts taxes (38.5% of all tax revenue)
33. Arizona
> State & local tax burden: $5,156 per capita
> Est. annual individual income: $55,487 per capita (12th lowest)
> Est. state and local effective property tax rate and revenue: 0.6% – 11th lowest ($1,206 per capita – 16th lowest)
> Approx. state and local sales tax rate and revenue: 8.4% – 11th highest ($1,742 per capita – 6th highest)
> State income tax collections: $898 per capita (8th lowest)
> Largest source of state and local tax revenue: Sales and gross receipts taxes (42.1% of all tax revenue)
32. South Dakota
> State & local tax burden: $5,196 per capita
> Est. annual individual income: $64,462 per capita (16th highest)
> Est. state and local effective property tax rate and revenue: 1.2% – 17th highest ($1,606 per capita – 25th lowest)
> Approx. state and local sales tax rate and revenue: 6.4% – 16th lowest ($1,788 per capita – 5th highest)
> State income tax collections: $0 (the lowest; tie)
> Largest source of state and local tax revenue: Sales and gross receipts taxes (40.0% of all tax revenue)
[in-text-ad-2]
31. North Carolina
> State & local tax burden: $5,299 per capita
> Est. annual individual income: $56,173 per capita (15th lowest)
> Est. state and local effective property tax rate and revenue: 0.8% – 19th lowest ($1,082 per capita – 10th lowest)
> Approx. state and local sales tax rate and revenue: 7.0% – 22nd lowest ($1,134 per capita – 15th lowest)
> State income tax collections: $1,508 per capita (23rd highest)
> Largest source of state and local tax revenue: Individual income tax (28.4% of all tax revenue)
30. Idaho
> State & local tax burden: $5,402 per capita
> Est. annual individual income: $52,369 per capita (7th lowest)
> Est. state and local effective property tax rate and revenue: 0.7% – 13th lowest ($1,131 per capita – 12th lowest)
> Approx. state and local sales tax rate and revenue: 6.0% – 11th lowest ($1,187 per capita – 19th lowest)
> State income tax collections: $1,293 per capita (19th lowest)
> Largest source of state and local tax revenue: Sales and gross receipts taxes (28.2% of all tax revenue)
[in-text-ad]
29. North Dakota
> State & local tax burden: $5,403 per capita
> Est. annual individual income: $64,524 per capita (15th highest)
> Est. state and local effective property tax rate and revenue: 1.0% – 23rd highest ($1,538 per capita – 21st lowest)
> Approx. state and local sales tax rate and revenue: 7.0% – 21st lowest ($1,732 per capita – 7th highest)
> State income tax collections: $579 per capita (5th lowest)
> Largest source of state and local tax revenue: Other (48.9% of all tax revenue)
28. Florida
> State & local tax burden: $5,406 per capita
> Est. annual individual income: $62,270 per capita (19th highest)
> Est. state and local effective property tax rate and revenue: 0.9% – 25th lowest ($1,541 per capita – 22nd lowest)
> Approx. state and local sales tax rate and revenue: 7.0% – 23rd highest ($1,425 per capita – 17th highest)
> State income tax collections: $0 (the lowest; tie)
> Largest source of state and local tax revenue: Property tax (38.1% of all tax revenue)
27. Ohio
> State & local tax burden: $5,530 per capita
> Est. annual individual income: $56,879 per capita (19th lowest)
> Est. state and local effective property tax rate and revenue: 1.6% – 9th highest ($1,458 per capita – 20th lowest)
> Approx. state and local sales tax rate and revenue: 7.2% – 20th highest ($1,293 per capita – 21st highest)
> State income tax collections: $905 per capita (9th lowest)
> Largest source of state and local tax revenue: Property tax (30.0% of all tax revenue)
[in-text-ad-2]
26. Nevada
> State & local tax burden: $5,554 per capita
> Est. annual individual income: $60,213 per capita (24th highest)
> Est. state and local effective property tax rate and revenue: 0.6% – 9th lowest ($1,153 per capita – 14th lowest)
> Approx. state and local sales tax rate and revenue: 8.2% – 13th highest ($2,022 per capita – 4th highest)
> State income tax collections: $0 (the lowest; tie)
> Largest source of state and local tax revenue: Sales and gross receipts taxes (42.1% of all tax revenue)
25. Montana
> State & local tax burden: $5,795 per capita
> Est. annual individual income: $56,949 per capita (20th lowest)
> Est. state and local effective property tax rate and revenue: 0.7% – 17th lowest ($1,806 per capita – 18th highest)
> Approx. state and local sales tax rate and revenue: 0% (the lowest)
> State income tax collections: $1,711 per capita (15th highest)
> Largest source of state and local tax revenue: Property tax (40.4% of all tax revenue)
[in-text-ad]
24. Iowa
> State & local tax burden: $6,086 per capita
> Est. annual individual income: $57,163 per capita (21st lowest)
> Est. state and local effective property tax rate and revenue: 1.5% – 10th highest ($1,806 per capita – 17th highest)
> Approx. state and local sales tax rate and revenue: 6.9% – 19th lowest ($1,244 per capita – 24th highest)
> State income tax collections: $1,336 per capita (24th highest)
> Largest source of state and local tax revenue: Property tax (33.2% of all tax revenue)
23. Wisconsin
> State & local tax burden: $6,231 per capita
> Est. annual individual income: $59,626 per capita (24th lowest)
> Est. state and local effective property tax rate and revenue: 1.6% – 8th highest ($1,717 per capita – 23rd highest)
> Approx. state and local sales tax rate and revenue: 5.4% – 5th lowest ($1,071 per capita – 14th lowest)
> State income tax collections: $1,533 per capita (21st highest)
> Largest source of state and local tax revenue: Property tax (32.6% of all tax revenue)
22. Kansas
> State & local tax burden: $6,353 per capita
> Est. annual individual income: $58,924 per capita (23rd lowest)
> Est. state and local effective property tax rate and revenue: 1.3% – 15th highest ($1,712 per capita – 24th highest)
> Approx. state and local sales tax rate and revenue: 8.7% – 9th highest ($1,510 per capita – 14th highest)
> State income tax collections: $1,573 per capita (19th highest)
> Largest source of state and local tax revenue: Property tax (32.9% of all tax revenue)
[in-text-ad-2]
21. Oregon
> State & local tax burden: $6,572 per capita
> Est. annual individual income: $61,596 per capita (21st highest)
> Est. state and local effective property tax rate and revenue: 0.9% – 24th highest ($1,730 per capita – 21st highest)
> Approx. state and local sales tax rate and revenue: 0% (the lowest)
> State income tax collections: $2,651 per capita (6th highest)
> Largest source of state and local tax revenue: Individual income tax (39.1% of all tax revenue)
20. New Hampshire
> State & local tax burden: $6,593 per capita
> Est. annual individual income: $73,200 per capita (7th highest)
> Est. state and local effective property tax rate and revenue: 1.9% – 3rd highest ($3,285 per capita – 3rd highest)
> Approx. state and local sales tax rate and revenue: 0% (the lowest)
> State income tax collections: $107 per capita (3rd lowest)
> Largest source of state and local tax revenue: Property tax (64.0% of all tax revenue)
[in-text-ad]
19. Colorado
> State & local tax burden: $6,699 per capita
> Est. annual individual income: $70,706 per capita (8th highest)
> Est. state and local effective property tax rate and revenue: 0.5% – 3rd lowest ($1,956 per capita – 14th highest)
> Approx. state and local sales tax rate and revenue: 7.8% – 15th highest ($1,511 per capita – 13th highest)
> State income tax collections: $1,763 per capita (13th highest)
> Largest source of state and local tax revenue: Property tax (34.5% of all tax revenue)
18. Nebraska
> State & local tax burden: $6,720 per capita
> Est. annual individual income: $61,205 per capita (22nd highest)
> Est. state and local effective property tax rate and revenue: 1.6% – 7th highest ($2,088 per capita – 13th highest)
> Approx. state and local sales tax rate and revenue: 6.9% – 20th lowest ($1,322 per capita – 20th highest)
> State income tax collections: $1,594 per capita (18th highest)
> Largest source of state and local tax revenue: Property tax (36.9% of all tax revenue)
17. Pennsylvania
> State & local tax burden: $6,723 per capita
> Est. annual individual income: $64,279 per capita (18th highest)
> Est. state and local effective property tax rate and revenue: 1.5% – 11th highest ($1,644 per capita – 25th highest)
> Approx. state and local sales tax rate and revenue: 6.3% – 14th lowest ($971 per capita – 11th lowest)
> State income tax collections: $1,232 per capita (16th lowest)
> Largest source of state and local tax revenue: Property tax (29.6% of all tax revenue)
[in-text-ad-2]
16. Utah
> State & local tax burden: $6,750 per capita
> Est. annual individual income: $56,019 per capita (14th lowest)
> Est. state and local effective property tax rate and revenue: 0.6% – 8th lowest ($1,209 per capita – 17th lowest)
> Approx. state and local sales tax rate and revenue: 7.2% – 21st highest ($1,351 per capita – 19th highest)
> State income tax collections: $1,999 per capita (9th highest)
> Largest source of state and local tax revenue: Sales and gross receipts taxes (30.2% of all tax revenue)
15. Maine
> State & local tax burden: $6,906 per capita
> Est. annual individual income: $58,484 per capita (22nd lowest)
> Est. state and local effective property tax rate and revenue: 1.2% – 16th highest ($2,862 per capita – 5th highest)
> Approx. state and local sales tax rate and revenue: 5.5% – 6th lowest ($1,223 per capita – 25th highest)
> State income tax collections: $1,512 per capita (22nd highest)
> Largest source of state and local tax revenue: Property tax (44.6% of all tax revenue)
[in-text-ad]
14. Rhode Island
> State & local tax burden: $6,948 per capita
> Est. annual individual income: $64,376 per capita (17th highest)
> Est. state and local effective property tax rate and revenue: 1.4% – 13th highest ($2,449 per capita – 8th highest)
> Approx. state and local sales tax rate and revenue: 7.0% – 24th highest ($1,056 per capita – 13th lowest)
> State income tax collections: $1,604 per capita (17th highest)
> Largest source of state and local tax revenue: Property tax (42.7% of all tax revenue)
13. Delaware
> State & local tax burden: $7,170 per capita
> Est. annual individual income: $59,931 per capita (25th highest)
> Est. state and local effective property tax rate and revenue: 0.6% – 10th lowest ($1,049 per capita – 9th lowest)
> Approx. state and local sales tax rate and revenue: 0% (the lowest)
> State income tax collections: $2,141 per capita (8th highest)
> Largest source of state and local tax revenue: Other (47.7% of all tax revenue)
12. Maryland
> State & local tax burden: $7,680 per capita
> Est. annual individual income: $69,817 per capita (9th highest)
> Est. state and local effective property tax rate and revenue: 1.0% – 20th highest ($1,744 per capita – 20th highest)
> Approx. state and local sales tax rate and revenue: 6.0% – 8th lowest ($800 per capita – 4th lowest)
> State income tax collections: $1,652 per capita (16th highest)
> Largest source of state and local tax revenue: Individual income tax (40.5% of all tax revenue)
[in-text-ad-2]
11. Minnesota
> State & local tax burden: $7,763 per capita
> Est. annual individual income: $66,280 per capita (13th highest)
> Est. state and local effective property tax rate and revenue: 1.1% – 19th highest ($1,776 per capita – 19th highest)
> Approx. state and local sales tax rate and revenue: 7.5% – 17th highest ($1,187 per capita – 20th lowest)
> State income tax collections: $2,658 per capita (5th highest)
> Largest source of state and local tax revenue: Individual income tax (29.4% of all tax revenue)
10. Washington
> State & local tax burden: $7,803 per capita
> Est. annual individual income: $73,775 per capita (6th highest)
> Est. state and local effective property tax rate and revenue: 0.9% – 22nd lowest ($1,727 per capita – 22nd highest)
> Approx. state and local sales tax rate and revenue: 8.9% – 6th highest ($2,293 per capita – 2nd highest)
> State income tax collections: $0 (the lowest; tie)
> Largest source of state and local tax revenue: Sales and gross receipts taxes (47.1% of all tax revenue)
[in-text-ad]
9. Vermont
> State & local tax burden: $7,958 per capita
> Est. annual individual income: $61,882 per capita (20th highest)
> Est. state and local effective property tax rate and revenue: 1.8% – 4th highest ($2,860 per capita – 6th highest)
> Approx. state and local sales tax rate and revenue: 6.3% – 13th lowest ($697 per capita – 3rd lowest)
> State income tax collections: $1,910 per capita (11th highest)
> Largest source of state and local tax revenue: Property tax (44.3% of all tax revenue)
8. Virginia
> State & local tax burden: $7,979 per capita
> Est. annual individual income: $66,305 per capita (12th highest)
> Est. state and local effective property tax rate and revenue: 0.9% – 23rd lowest ($1,830 per capita – 16th highest)
> Approx. state and local sales tax rate and revenue: 5.8% – 7th lowest ($834 per capita – 6th lowest)
> State income tax collections: $1,975 per capita (10th highest)
> Largest source of state and local tax revenue: Property tax (32.7% of all tax revenue)
7. Illinois
> State & local tax burden: $8,390 per capita
> Est. annual individual income: $67,244 per capita (11th highest)
> Est. state and local effective property tax rate and revenue: 2.1% – 2nd highest ($2,268 per capita – 10th highest)
> Approx. state and local sales tax rate and revenue: 8.8% – 8th highest ($1,163 per capita – 17th lowest)
> State income tax collections: $1,726 per capita (14th highest)
> Largest source of state and local tax revenue: Property tax (35.4% of all tax revenue)
[in-text-ad-2]
6. Hawaii
> State & local tax burden: $8,410 per capita
> Est. annual individual income: $60,947 per capita (23rd highest)
> Est. state and local effective property tax rate and revenue: 0.3% – the lowest ($1,556 per capita – 23rd lowest)
> Approx. state and local sales tax rate and revenue: 4.4% – 3rd lowest ($2,765 per capita – the highest)
> State income tax collections: $2,327 per capita (7th highest)
> Largest source of state and local tax revenue: Sales and gross receipts taxes (37.0% of all tax revenue)
5. Massachusetts
> State & local tax burden: $9,405 per capita
> Est. annual individual income: $83,653 per capita (the highest)
> Est. state and local effective property tax rate and revenue: 1.1% – 18th highest ($2,638 per capita – 7th highest)
> Approx. state and local sales tax rate and revenue: 6.3% – 12th lowest ($971 per capita – 10th lowest)
> State income tax collections: $2,818 per capita (3rd highest)
> Largest source of state and local tax revenue: Property tax (36.3% of all tax revenue)
[in-text-ad]
4. New Jersey
> State & local tax burden: $9,648 per capita
> Est. annual individual income: $77,016 per capita (3rd highest)
> Est. state and local effective property tax rate and revenue: 2.2% – the highest ($3,431 per capita – the highest)
> Approx. state and local sales tax rate and revenue: 6.6% – 18th lowest ($1,193 per capita – 21st lowest)
> State income tax collections: $1,816 per capita (12th highest)
> Largest source of state and local tax revenue: Property tax (45.3% of all tax revenue)
3. California
> State & local tax burden: $10,167 per capita
> Est. annual individual income: $76,614 per capita (5th highest)
> Est. state and local effective property tax rate and revenue: 0.7% – 18th lowest ($1,955 per capita – 15th highest)
> Approx. state and local sales tax rate and revenue: 8.8% – 7th highest ($1,498 per capita – 15th highest)
> State income tax collections: $3,729 per capita (the highest)
> Largest source of state and local tax revenue: Individual income tax (30.5% of all tax revenue)
2. New York
> State & local tax burden: $12,083 per capita
> Est. annual individual income: $76,837 per capita (4th highest)
> Est. state and local effective property tax rate and revenue: 1.4% – 12th highest ($3,118 per capita – 4th highest)
> Approx. state and local sales tax rate and revenue: 8.5% – 10th highest ($1,682 per capita – 10th highest)
> State income tax collections: $2,773 per capita (4th highest)
> Largest source of state and local tax revenue: Individual income tax (33.9% of all tax revenue)
[in-text-ad-2]
1. Connecticut
> State & local tax burden: $12,151 per capita
> Est. annual individual income: $83,294 per capita (2nd highest)
> Est. state and local effective property tax rate and revenue: 1.8% – 5th highest ($3,295 per capita – 2nd highest)
> Approx. state and local sales tax rate and revenue: 6.4% – 15th lowest ($1,273 per capita – 23rd highest)
> State income tax collections: $2,845 per capita (2nd highest)
> Largest source of state and local tax revenue: Property tax (39.0% of all tax revenue)
Methodology
To identify the states where Americans are paying the most taxes, 24/7 Wall St. reviewed data from the report Facts & Figures 2023: How Does Your State Compare from the Tax Foundation, an independent, non-profit, tax policy research organization. States are ranked by state and local tax collections per capita in the 2022 calendar year.
We also considered several supplementary measures. Income per capita is for the 2021 calendar year. Individual income tax collections per capita by state are for fiscal 2021. State sales tax rates, combined with the average local sales tax rate, is current as of Jan. 1, 2023 while state and local general sales tax collections are for fiscal 2020. Average property taxes paid as a share of home value, or the effective property tax rate, is for the 2021 calendar year, while state and local property tax collections per capita are for the fiscal 2020. Each of these measures is from the Tax Foundation.
The largest share of state and local tax revenue is for the 2020 fiscal year and is from the Tax Foundation’s report Unpacking the State and Local Tax Toolkit: Sources of State and Local Tax Collections.
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.