Special Report
States Where Americans Are Paying the Most Taxes
Published:
Last Updated:
With Tax Day — April 15, 2020 — drawing ever closer, Americans from all corners of the country will be completing and submitting their 1040 forms to the Internal Revenue Service in the coming weeks and months. While every American is subject to the same federal tax code, state and local tax laws vary dramatically by region — and so does the overall financial burden of those taxes.
In addition to the federal income tax paid in April, most state governments also levy an income tax. And many state and local governments also levy property and sales taxes. All told, the typical American pays just over $5,000 a year in state and local taxes, equal to 9.8% of their estimated annual income. The national average, however, is not representative of the typical tax burden on a state level.
24/7 Wall St. reviewed the total tax payments as a share of income on a per capita basis to identify the states with the lowest and highest tax burden. Federal taxes were not included in the calculation.
Of the property, sales, and income taxes, property taxes account for the largest share of state and local government revenue on average nationwide. More so than other forms of taxes, property taxes are often set by local authorities, including cities, counties, and school boards. Still, state governments often establish parameters in order to keep property tax rates somewhat uniform. The states with the highest overall tax burdens tend to have higher than average property taxes. These are the states with the highest (and lowest) property taxes.
Most of the states with the lowest tax burden share is the lack of a statewide income tax. Each of the seven states that do not levy any form of personal income tax has a lower overall tax burden than the national average. While tax codes that impose little or no income tax tend to have a lower overall tax burden, the wealthiest residents typically benefit the most. Here is a look at the most tax-friendly states for the rich.
Click here to see the states where Americans are paying the most taxes
Click here to read our methodology
50. Alaska
> Taxes paid as pct. of income: 7.2%
> Income per capita: $56,794 (9th highest)
> Income tax collections per capita: $0 (tied – the lowest)
> Property tax collections per capita: $2,120 (10th highest)
> General sales tax collections per capita: $316 (5th lowest)
[in-text-ad]
49. Tennessee
> Taxes paid as pct. of income: 7.6%
> Income per capita: $44,950 (15th lowest)
> Income tax collections per capita: $37 (8th lowest)
> Property tax collections per capita: $876 (6th lowest)
> General sales tax collections per capita: $1,393 (12th highest)
48. Florida
> Taxes paid as pct. of income: 7.6%
> Income per capita: $47,869 (24th lowest)
> Income tax collections per capita: $0 (tied – the lowest)
> Property tax collections per capita: $1,330 (22nd lowest)
> General sales tax collections per capita: $1,323 (16th highest)
47. Oklahoma
> Taxes paid as pct. of income: 8.1%
> Income per capita: $43,634 (10th lowest)
> Income tax collections per capita: $794 (16th lowest)
> Property tax collections per capita: $730 (2nd lowest)
> General sales tax collections per capita: $1,185 (18th highest)
[in-text-ad-2]
46. Arizona
> Taxes paid as pct. of income: 8.2%
> Income per capita: $42,505 (9th lowest)
> Income tax collections per capita: $489 (11th lowest)
> Property tax collections per capita: $1,099 (17th lowest)
> General sales tax collections per capita: $1,371 (13th highest)
45. Alabama
> Taxes paid as pct. of income: 8.3%
> Income per capita: $40,467 (4th lowest)
> Income tax collections per capita: $769 (15th lowest)
> Property tax collections per capita: $582 (the lowest)
> General sales tax collections per capita: $1,039 (20th lowest)
[in-text-ad]
44. Wyoming
> Taxes paid as pct. of income: 8.3%
> Income per capita: $56,377 (10th highest)
> Income tax collections per capita: $0 (tied – the lowest)
> Property tax collections per capita: $2,089 (11th highest)
> General sales tax collections per capita: $1,116 (25th highest)
43. Missouri
> Taxes paid as pct. of income: 8.4%
> Income per capita: $45,744 (18th lowest)
> Income tax collections per capita: $1,073 (25th highest)
> Property tax collections per capita: $1,039 (15th lowest)
> General sales tax collections per capita: $1,048 (21st lowest)
42. South Carolina
> Taxes paid as pct. of income: 8.4%
> Income per capita: $42,081 (7th lowest)
> Income tax collections per capita: $825 (18th lowest)
> Property tax collections per capita: $1,201 (19th lowest)
> General sales tax collections per capita: $760 (9th lowest)
[in-text-ad-2]
41. New Hampshire
> Taxes paid as pct. of income: 8.4%
> Income per capita: $58,397 (8th highest)
> Income tax collections per capita: $49 (9th lowest)
> Property tax collections per capita: $3,307 (the highest)
> General sales tax collections per capita: $0 (0 – the lowest)
40. Georgia
> Taxes paid as pct. of income: 8.4%
> Income per capita: $44,536 (14th lowest)
> Income tax collections per capita: $1,054 (25th lowest)
> Property tax collections per capita: $1,161 (18th lowest)
> General sales tax collections per capita: $892 (12th lowest)
[in-text-ad]
39. Montana
> Taxes paid as pct. of income: 8.6%
> Income per capita: $45,312 (17th lowest)
> Income tax collections per capita: $1,119 (24th highest)
> Property tax collections per capita: $1,567 (22nd highest)
> General sales tax collections per capita: $0 (0 – the lowest)
38. South Dakota
> Taxes paid as pct. of income: 8.6%
> Income per capita: $49,554 (22nd highest)
> Income tax collections per capita: $0 (tied – the lowest)
> Property tax collections per capita: $1,621 (19th highest)
> General sales tax collections per capita: $1,648 (5th highest)
37. Indiana
> Taxes paid as pct. of income: 8.6%
> Income per capita: $45,225 (16th lowest)
> Income tax collections per capita: $909 (19th lowest)
> Property tax collections per capita: $1,041 (16th lowest)
> General sales tax collections per capita: $1,135 (22nd highest)
[in-text-ad-2]
36. Virginia
> Taxes paid as pct. of income: 8.7%
> Income per capita: $55,306 (12th highest)
> Income tax collections per capita: $1,542 (9th highest)
> Property tax collections per capita: $1,652 (16th highest)
> General sales tax collections per capita: $642 (7th lowest)
35. Texas
> Taxes paid as pct. of income: 8.7%
> Income per capita: $47,929 (25th lowest)
> Income tax collections per capita: $0 (tied – the lowest)
> Property tax collections per capita: $1,872 (13th highest)
> General sales tax collections per capita: $1,426 (11th highest)
[in-text-ad]
34. Idaho
> Taxes paid as pct. of income: 8.8%
> Income per capita: $42,094 (8th lowest)
> Income tax collections per capita: $966 (21st lowest)
> Property tax collections per capita: $1,018 (13th lowest)
> General sales tax collections per capita: $963 (17th lowest)
33. Colorado
> Taxes paid as pct. of income: 8.8%
> Income per capita: $55,335 (11th highest)
> Income tax collections per capita: $1,209 (15th highest)
> Property tax collections per capita: $1,542 (24th highest)
> General sales tax collections per capita: $1,339 (14th highest)
32. North Carolina
> Taxes paid as pct. of income: 9.0%
> Income per capita: $44,180 (13th lowest)
> Income tax collections per capita: $1,177 (19th highest)
> Property tax collections per capita: $974 (10th lowest)
> General sales tax collections per capita: $1,026 (19th lowest)
[in-text-ad-2]
31. Michigan
> Taxes paid as pct. of income: 9.1%
> Income per capita: $46,258 (19th lowest)
> Income tax collections per capita: $1,005 (23rd lowest)
> Property tax collections per capita: $1,416 (23rd lowest)
> General sales tax collections per capita: $925 (15th lowest)
30. Washington
> Taxes paid as pct. of income: 9.1%
> Income per capita: $58,550 (7th highest)
> Income tax collections per capita: $0 (tied – the lowest)
> Property tax collections per capita: $1,498 (25th lowest)
> General sales tax collections per capita: $2,476 (the highest)
[in-text-ad]
29. Utah
> Taxes paid as pct. of income: 9.2%
> Income per capita: $44,002 (12th lowest)
> Income tax collections per capita: $1,167 (21st highest)
> Property tax collections per capita: $1,037 (14th lowest)
> General sales tax collections per capita: $1,071 (22nd lowest)
28. Kentucky
> Taxes paid as pct. of income: 9.5%
> Income per capita: $40,999 (5th lowest)
> Income tax collections per capita: $1,313 (13th highest)
> Property tax collections per capita: $831 (5th lowest)
> General sales tax collections per capita: $784 (11th lowest)
27. Kansas
> Taxes paid as pct. of income: 9.5%
> Income per capita: $48,869 (24th highest)
> Income tax collections per capita: $800 (17th lowest)
> Property tax collections per capita: $1,552 (23rd highest)
> General sales tax collections per capita: $1,477 (9th highest)
[in-text-ad-2]
26. Nevada
> Taxes paid as pct. of income: 9.6%
> Income per capita: $46,914 (22nd lowest)
> Income tax collections per capita: $0 (tied – the lowest)
> Property tax collections per capita: $1,012 (11th lowest)
> General sales tax collections per capita: $1,846 (4th highest)
25. Massachusetts
> Taxes paid as pct. of income: 9.6%
> Income per capita: $68,233 (2nd highest)
> Income tax collections per capita: $2,145 (4th highest)
> Property tax collections per capita: $2,434 (6th highest)
> General sales tax collections per capita: $909 (14th lowest)
[in-text-ad]
24. Arkansas
> Taxes paid as pct. of income: 9.6%
> Income per capita: $41,520 (6th lowest)
> Income tax collections per capita: $922 (20th lowest)
> Property tax collections per capita: $740 (3rd lowest)
> General sales tax collections per capita: $1,511 (8th highest)
23. Delaware
> Taxes paid as pct. of income: 9.7%
> Income per capita: $50,350 (21st highest)
> Income tax collections per capita: $1,297 (14th highest)
> Property tax collections per capita: $923 (8th lowest)
> General sales tax collections per capita: $0 (0 – the lowest)
22. Pennsylvania
> Taxes paid as pct. of income: 9.7%
> Income per capita: $53,144 (16th highest)
> Income tax collections per capita: $1,339 (12th highest)
> Property tax collections per capita: $1,528 (25th highest)
> General sales tax collections per capita: $894 (13th lowest)
[in-text-ad-2]
21. Oregon
> Taxes paid as pct. of income: 9.8%
> Income per capita: $48,372 (25th highest)
> Income tax collections per capita: $2,021 (6th highest)
> Property tax collections per capita: $1,487 (24th lowest)
> General sales tax collections per capita: $0 (0 – the lowest)
20. Louisiana
> Taxes paid as pct. of income: 9.9%
> Income per capita: $43,938 (11th lowest)
> Income tax collections per capita: $632 (13th lowest)
> Property tax collections per capita: $901 (7th lowest)
> General sales tax collections per capita: $1,851 (3rd highest)
[in-text-ad]
19. Wisconsin
> Taxes paid as pct. of income: 9.9%
> Income per capita: $49,290 (23rd highest)
> Income tax collections per capita: $1,345 (11th highest)
> Property tax collections per capita: $1,655 (14th highest)
> General sales tax collections per capita: $969 (18th lowest)
18. Ohio
> Taxes paid as pct. of income: 10.0%
> Income per capita: $46,651 (21st lowest)
> Income tax collections per capita: $1,207 (16th highest)
> Property tax collections per capita: $1,316 (21st lowest)
> General sales tax collections per capita: $1,337 (15th highest)
17. Nebraska
> Taxes paid as pct. of income: 10.1%
> Income per capita: $50,663 (20th highest)
> Income tax collections per capita: $1,162 (22nd highest)
> Property tax collections per capita: $1,957 (12th highest)
> General sales tax collections per capita: $1,167 (21st highest)
[in-text-ad-2]
16. Mississippi
> Taxes paid as pct. of income: 10.1%
> Income per capita: $36,375 (the lowest)
> Income tax collections per capita: $614 (12th lowest)
> Property tax collections per capita: $1,017 (12th lowest)
> General sales tax collections per capita: $1,180 (20th highest)
15. West Virginia
> Taxes paid as pct. of income: 10.2%
> Income per capita: $38,644 (2nd lowest)
> Income tax collections per capita: $998 (22nd lowest)
> Property tax collections per capita: $948 (9th lowest)
> General sales tax collections per capita: $758 (8th lowest)
[in-text-ad]
14. California
> Taxes paid as pct. of income: 10.3%
> Income per capita: $60,156 (6th highest)
> Income tax collections per capita: $2,137 (5th highest)
> Property tax collections per capita: $1,607 (20th highest)
> General sales tax collections per capita: $1,246 (17th highest)
13. Maryland
> Taxes paid as pct. of income: 10.4%
> Income per capita: $60,512 (5th highest)
> Income tax collections per capita: $2,390 (2nd highest)
> Property tax collections per capita: $1,623 (18th highest)
> General sales tax collections per capita: $765 (10th lowest)
12. New Mexico
> Taxes paid as pct. of income: 10.4%
> Income per capita: $39,521 (3rd lowest)
> Income tax collections per capita: $640 (14th lowest)
> Property tax collections per capita: $792 (4th lowest)
> General sales tax collections per capita: $1,604 (6th highest)
[in-text-ad-2]
11. Iowa
> Taxes paid as pct. of income: 10.5%
> Income per capita: $47,458 (23rd lowest)
> Income tax collections per capita: $1,196 (17th highest)
> Property tax collections per capita: $1,632 (17th highest)
> General sales tax collections per capita: $1,128 (23rd highest)
10. Connecticut
> Taxes paid as pct. of income: 10.6%
> Income per capita: $72,213 (the highest)
> Income tax collections per capita: $2,227 (3rd highest)
> Property tax collections per capita: $3,020 (3rd highest)
> General sales tax collections per capita: $1,185 (19th highest)
[in-text-ad]
9. Rhode Island
> Taxes paid as pct. of income: 10.6%
> Income per capita: $52,379 (18th highest)
> Income tax collections per capita: $1,173 (20th highest)
> Property tax collections per capita: $2,407 (7th highest)
> General sales tax collections per capita: $943 (16th lowest)
8. Illinois
> Taxes paid as pct. of income: 10.7%
> Income per capita: $53,943 (14th highest)
> Income tax collections per capita: $1,037 (24th lowest)
> Property tax collections per capita: $2,239 (8th highest)
> General sales tax collections per capita: $1,127 (24th highest)
7. New Jersey
> Taxes paid as pct. of income: 10.7%
> Income per capita: $64,924 (4th highest)
> Income tax collections per capita: $1,570 (8th highest)
> Property tax collections per capita: $3,276 (2nd highest)
> General sales tax collections per capita: $1,079 (23rd lowest)
[in-text-ad-2]
6. Minnesota
> Taxes paid as pct. of income: 11.2%
> Income per capita: $54,919 (13th highest)
> Income tax collections per capita: $1,968 (7th highest)
> Property tax collections per capita: $1,599 (21st highest)
> General sales tax collections per capita: $1,097 (25th lowest)
5. Maine
> Taxes paid as pct. of income: 11.4%
> Income per capita: $46,570 (20th lowest)
> Income tax collections per capita: $1,150 (23rd highest)
> Property tax collections per capita: $2,138 (9th highest)
> General sales tax collections per capita: $1,080 (24th lowest)
[in-text-ad]
4. Vermont
> Taxes paid as pct. of income: 11.6%
> Income per capita: $51,976 (19th highest)
> Income tax collections per capita: $1,191 (18th highest)
> Property tax collections per capita: $2,670 (5th highest)
> General sales tax collections per capita: $627 (6th lowest)
3. Hawaii
> Taxes paid as pct. of income: 12.5%
> Income per capita: $53,145 (15th highest)
> Income tax collections per capita: $1,471 (10th highest)
> Property tax collections per capita: $1,236 (20th lowest)
> General sales tax collections per capita: $2,431 (2nd highest)
2. North Dakota
> Taxes paid as pct. of income: 12.7%
> Income per capita: $52,669 (17th highest)
> Income tax collections per capita: $423 (10th lowest)
> Property tax collections per capita: $1,654 (15th highest)
> General sales tax collections per capita: $1,476 (10th highest)
[in-text-ad-2]
1. New York
> Taxes paid as pct. of income: 13.8%
> Income per capita: $65,644 (3rd highest)
> Income tax collections per capita: $2,877 (the highest)
> Property tax collections per capita: $2,902 (4th highest)
> General sales tax collections per capita: $1,551 (7th highest)
Methodology
To determine the states where Americans are paying the most taxes, 24/7 Wall St. calculated the state and local tax burdens as a percentage of personal income for all 50 states..
Data on state and local tax collections, including data on individual income, property, and general sales tax collections, came from the U.S. Census Bureau’s 2017 Census of Governments. Data on personal income and population, which were used to calculate tax collection per capita, came from the Bureau of Economic Analysis and are for 2017.
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.