Uncle Sam might take a bite out of your paycheck everywhere in the U.S., but that doesn’t mean the taxman takes the same size chunk in every state. While federal taxes do stay consistent across all states, each state also has its own income, sales, and property taxes that residents must pay.
All of these taxes add up to the total tax burden for that state. Simply put, the total tax burden is the average percentage of a resident’s income that goes toward taxes.
To uncover which states have the biggest tax appetites (and the lightest), we crunched the numbers on three key taxes: property, income, and sales. Then, we added these burdens together to reveal each state’s tax burden. (You can also see our article about states with the highest property taxes, which factor into a state’s overall tax burden.)
Here’s the tax burden of all 50 states, starting at the state with the highest burden and ending at the state with the lowest burden:
Why Does It Matter?
Everyone must pay taxes. But some people must budget more for taxes than others. If you want to protect your personal wealth, avoiding places with high tax burdens is a solid strategy.
50. New York
- Total Tax Burden: 12%
New York has the highest tax burden out of any state. Residents face a hefty combination of income and property taxes, making it one of the most taxed states in the union.
49. Hawaii
- Total Tax Burden: 11.8%
Paradise doesn’t come cheap. While Hawaii does have some of the lowest property taxes in the nation, they more than make up for it in a high-income tax and general excise tax that applies to most goods and services.
48. Vermont
- Total Tax Burden: 11.1%
Vermont has a reputation for high taxes, and for good reason! They rely heavily on property taxes to fund their government and impose a high-income tax on top of that.
47. Maine
- Total Tax Burden: 10.7%
Maine’s taxes are similar to Vermont’s. It has a high income and property tax, which creates a high tax burden for residents.
46. California
- Total Tax Burden: 10.4%
California also has one of the highest tax burdens in the United States. It boasts one of the highest income tax rates in the country, which raises its overall tax burden significantly.
45. Connecticut
- Total Tax Burden: 10.1%
Connecticut has a reputation for high taxes. Residents must pay a combination of income, sales, and property taxes that add up to a hefty tax burden.
44. Minnesota
- Total Tax Burden: 10.0%
Minnesota doesn’t have the high tax rate that New York does, but it’s still in the top ten! They rely on a progressive income tax system and have higher-than-average property taxes.
43. Illinois
- Total Tax Burden: 9.7%
The Prairie State has had a high tax burden for decades. Illinois residents face a high income tax and sales taxes that vary depending on location.
42. New Jersey
- Total Tax Burden: 9.5%
New Jersey requires residents to pay some of the highest property taxes in the nation. Combined with their income tax, that makes New Jersey one of the highest tax burden states.
41. Rhode Island
- Total Tax Burden: 9.4%
Rhode Island has one of the flattest income tax rates in the country, and it’s also coupled with a high sales tax and property tax. It’s no surprise this state is near the top of our list.
40. Utah
- Total Tax Burden: 9.4%
Utah has the same tax burden as Rhode Island, but not for the same reason. They have a low income tax rate, but their sales taxes are much higher.
39. Kansas
- Total Tax Burden: 9.3%
Though Kansas once had lower taxes, residents have seen their tax burden rise in recent years. Income tax rates have increased, and while property taxes are moderate, they contribute to the overall tax climate.
38. Maryland
- Total Tax Burden: 9.3%
Maryland residents face a combination of income and sales taxes. The state has an income tax that varies in some places, so the total tax burden can vary depending on exactly where you live.
37. Iowa
- Total Tax Burden: 9.2%
Iowa has a reputation for having a more moderate tax burden. However, when you look at the numbers, their tax rate is decently higher than average.
36. Nebraska
- Total Tax Burden: 9.2%
Nebraska has the same tax burden as Iowa. They do have income taxes and property taxes. These taxes are just lower than the states we’ve discussed previously.
35. Ohio
- Total Tax Burden: 8.9%
Ohio falls outside of the top ten, but it still has a high tax burden. Residents pay a combination of income, sales, and property taxes, which add up.
34. Indiana
- Total Tax Burden: 8.9%
Indiana has a relatively low tax burden compared to the surrounding states. It has a flat income tax and moderate property tax, though.
33. Arkansas
- Total Tax Burden: 8.8%
Arkansas residents benefit from low income and sales tax, though the property tax is a bit higher. All these taxes add up, though, putting Arkansas still in the top half of the list.
32. Mississippi
- Total Tax Burden: 8.8%
Many people mistakenly think that Mississippi has a low tax rate, but its overall tax burden is one of the highest in the South.
31. Massachusetts
- Total Tax Burden: 8.6%
Residents in Massachusetts must grapple with a high cost of living and a relatively high tax burden. If you’re looking to save your wealth, this probably isn’t the best state for you.
30. Virginia
- Total Tax Burden: 8.5%
Virginia relies on a graduated income tax with a relatively low top rate. On top of its sales tax, this leads to a high tax rate for the majority of residents.
29. West Virginia
- Total Tax Burden: 8.5%
West Virginia has the same tax burden as its neighbor, Virginia. However, they have a flat income tax and much higher property taxes.
28. Oregon
- Total Tax Burden: 8.4%
Oregon has a bit of an unusual tax system. It has no sales tax but makes up for this with a progressive income tax.
27. Colorado
- Total Tax Burden: 8.4%
Colorado is close to “average” when it comes to taxes. It has a flat income tax rate and relies heavily on sales tax. Some localities add additional sales taxes on top of the state rate.
26. Pennsylvania
- Total Tax Burden: 8.4%
Pennsylvania has a reputation for high taxes, but it’s actually pretty close to the middle of our list. They do have a progressive income tax system and a relatively high sales tax, though.
25. Wisconsin
- Total Tax Burden: 8.3%
Wisconsin is in the middle of our list. It has a progressive income tax with a moderate top state. The state’s sales tax varies widely depending on location, though.
24. Louisiana
- Total Tax Burden: 8.3%
Louisiana relies on sales tax and income tax to fund its government. The income tax is substantial, though the sales tax is pretty low. Interestingly, Louisiana is one of the few states with no property tax.
23. Kentucky
- Total Tax Burden: 8.3%
Kentucky prides itself on its low tax rate, though it isn’t really that low! The state has a moderate income tax, sales tax, and property tax. All of these taxes add up quickly to a pretty substantial tax rate.
22. Washington
- Total Tax Burden: 8.0%
Washington has a modest 6.5% sales tax . The state does have a graduated income tax that can be high for earners in the upper tax bracket. Therefore, the tax burden isn’t necessarily light for everyone.
21. New Mexico
- Total Tax Burden: 8.0%
New Mexico residents face a combination of income taxes, sales taxes, and property taxes. While none of these are very high by themselves, they do add up! Sales taxes vary on location, so where you live within the state does matter.
20. Michigan
- Total Tax Burden: 8.0%
Michigan relies on a combination of income taxes, sales taxes, and property taxes, like many of the states on this list. Its income tax is flat, but it’s sales tax is above average.
19. North Carolina
- Total Tax Burden: 7.9%
North Carolina may be towards the bottom of our list, but it also utilizes all three major types of taxes: income, sales, and property.
18. Idaho
- Total Tax Burden: 7.9%
Idaho has a lower-than-average tax burden. Their moderate sales tax and graduated income tax system help keep the tax burden light for most residents. However, property taxes vary depending on location.
17. Arizona
- Total Tax Burden: 7.8%
Arizona has a similar tax system to Idaho. It has a moderate sales tax and a graduated income tax, which is why many people consider Arizona a lower-tax state.
16. Missouri
- Total Tax Burden: 7.8%
Missouri has a balanced tax approach, but rates are lower overall. Residents still have to pay income, sales, and property taxes, though. Property taxes aren’t exactly the lowest, either.
15. Georgia
- Total Tax Burden: 7.7%
Georgia is best known for its flat income tax rate, but it also has a moderate sales tax. Property taxes occur in most areas, but it can vary based on the exact location.
14. Texas
- Total Tax Burden: 7.6%
Texas may be famous for its lack of an income tax. However, they rely heavily on property and sales taxes to generate revenue. The overall tax burden doesn’t even put them in the top ten lowest tax states.
13. Alabama
- Total Tax Burden: 7.5%
Alabama has a relatively low sales tax and absolutely no income tax, making its taxes considerably low. However, property tax can be very high in some areas. Some areas also have a local income tax, raising the overall tax burden.
12. Montana
- Total Tax Burden: 7.5%
Montana has the same tax burden as Alabama, though its taxes are far simpler. It doesn’t have a sales tax or local income tax. However, there is a state income tax based on income, but the rate is much lower than the national average. Property taxes also exist but vary based on location.
11. South Carolina
- Total Tax Burden: 7.5%
South Carolina is just higher than the top ten on our list. It does not have an income tax, but its sales and property taxes are pretty high. Its sales tax rate is even considered higher than average.
10. Nevada
- Total Tax Burden: 7.4%
Nevada is a haven for those seeking a lower tax burden. It’s one of the few states with no income tax, making it a popular destination for retirees and those looking to keep more of their money. The state relies on sales and gaming taxes to generate revenue.
9. Oklahoma
- Total Tax Burden: 7.0%
Oklahoma has a very balanced tax approach but keeps its overall tax burden pretty low. Residents must pay a combination of income and sales taxes.
8. North Dakota
- Total Tax Burden: 6.8%
North Dakota has a low sales tax and graduated income tax system with very low rates. Property taxes occur in some locations, but the state overall has a very low tax burden.
7. South Dakota
- Total Tax Burden: 6.4%
Joining its neighbor, North Dakota, South Dakota is another tax haven. It has no income tax, making it a popular choice for retirees. Instead, the state relies on sales and property taxes, which are slightly higher than the national average.
6. Delaware
- Total Tax Burden: 6.4%
Delaware’s tax structure is unique. The state has absolutely no sales tax, but it does have a corporate income tax. Residents also pay a graduated income tax, but the rates are generally lower than the national average. Property taxes differ based on location.
5. Tennessee
- Total Tax Burden: 6.1%
Tennessee entices residents thanks to its lack of income tax. However, it does have a slightly above-average sales tax and property taxes in most locations.
4. Florida
- Total Tax Burden: 6.1%
Florida has the same total tax burden as Tennessee and a similar tax structure. No income tax exists, but sales taxes are a bit higher than the national average. Property taxes vary from location to location, which is true for most states.
3. Wyoming
- Total Tax Burden: 5.7%
As we approach the end of our list, we come across Wyoming, which has a very simple tax system (and a very low tax burden). Wyoming has no income tax and only a 4% sales tax, which makes it a tax haven in every sense of the word. This state does have property taxes, but they are relatively low compared to the rest of the country.
In the end, that leaves this state with a very low tax burden.
2. New Hampshire
- Total Tax Burden: 5.6%
New Hampshire has a unique tax situation. There is no sales tax, but the state relies on local property taxes and a unique tax called the “rooms and meals tax” to generate revenue. Residents also have a low income tax.
1. Alaska
- Total Tax Burden: 4.9%
The state with the lowest tax burden by far is Alaska. This state has no income or sales tax. Property taxes are also relatively low. However, Alaska does have a substantial oil production tax that helps fund the state government.
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