When the U.S. hunkered down in 2020 because of the pandemic, it wasn’t just retail sales that suffered a major blow. States also saw overall tax revenues decline. The Tax Foundation reports state tax collections dropped 5.5 percent nationwide in FY 2020, driven mostly by a “dismal” final quarter (April through June).
State tax revenues include not only individual income taxes, but also corporate taxes, state property taxes, general sales taxes, and other taxes (excise taxes on gas, cigarettes, gaming, and alcohol, to name a few), too. Individual state income taxes plunged 10.1% year-over-year between FY 2019 and FY 2020, and 38.7% when compared to the previous final quarter.
However, the foundation points out the 10.1 percent drop may be “dramatically overstated” because most states postponed the tax filing deadline from April to July, meaning a good chunk of tax revenues will show up in the next fiscal year, which begins July 1.
How much you pay in state income taxes depends on where you live. Washington, Alaska, Nevada, South Dakota, Texas, Florida, and Wyoming levy none. Those states’ revenues derive either from property taxes or a general sales tax. (This is the state with the highest property taxes.)
Click here to see the states collecting the most income tax per person.
Meanwhile, residents in some states pay a hefty amount to their governments. New York (no surprise) collects the most in state income taxes at $2,791 per capita. It’s followed by California (again, no surprise) at $2,533. The Golden State’s high taxes and high cost of living are likely among the main reasons Californians are fleeing the state. (California recorded a decrease of 0.46% in population from January 2020 to January 2021). These are the states where Americans are paying the most taxes.
To identify the states collecting the most income tax per person, 24/7 Wall St. reviewed the Tax Foundation’s Facts and Figures dataset for 2021. Income per capita and the state’s top source for tax revenue was also taken from the Facts and Figures.
50. Washington
> State income tax collections per capita, 2019: $0 (tied)
> Income per capita, 2019: $64,758 — 6th highest
> Washington’s top source of tax revenue: General sales tax
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49. Alaska
> State income tax collections per capita, 2019: $0 (tied)
> Income per capita, 2019: $62,806 — 9th highest
> Alaska’s top source of tax revenue: Property tax
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48. Nevada
> State income tax collections per capita, 2019: $0 (tied)
> Income per capita, 2019: $51,161 — 22nd lowest
> Nevada’s top source of tax revenue: General sales tax
47. South Dakota
> State income tax collections per capita, 2019: $0 (tied)
> Income per capita, 2019: $53,962 — 22nd highest
> South Dakota’s top source of tax revenue: General sales tax
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46. Texas
> State income tax collections per capita, 2019: $0 (tied)
> Income per capita, 2019: $52,813 — 25th lowest
> Texas’s top source of tax revenue: Property tax
45. Florida
> State income tax collections per capita, 2019: $0 (tied)
> Income per capita, 2019: $52,426 — 24th lowest
> Florida’s top source of tax revenue: General sales tax
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44. Wyoming
> State income tax collections per capita, 2019: $0 (tied)
> Income per capita, 2019: $62,189 — 10th highest
> Wyoming’s top source of tax revenue: Property tax
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43. Tennessee
> State income tax collections per capita, 2019: $30
> Income per capita, 2019: $48,684 — 16th lowest
> Tennessee’s top source of tax revenue: General sales tax
42. New Hampshire
> State income tax collections per capita, 2019: $90
> Income per capita, 2019: $63,502 — 8th highest
> New Hampshire’s top source of tax revenue: Property tax
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41. North Dakota
> State income tax collections per capita, 2019: $545
> Income per capita, 2019: $57,232 — 16th highest
> North Dakota’s top source of tax revenue: Other taxes
40. Mississippi
> State income tax collections per capita, 2019: $661
> Income per capita, 2019: $38,914 — the lowest
> Mississippi’s top source of tax revenue: General sales tax
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39. Arizona
> State income tax collections per capita, 2019: $736
> Income per capita, 2019: $46,058 — 9th lowest
> Arizona’s top source of tax revenue: General sales tax
38. New Mexico
> State income tax collections per capita, 2019: $758
> Income per capita, 2019: $43,326 — 3rd lowest
> New Mexico’s top source of tax revenue: General sales tax
37. Ohio
> State income tax collections per capita, 2019: $797
> Income per capita, 2019: $50,199 — 20th lowest
> Ohio’s top source of tax revenue: Property tax
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36. Louisiana
> State income tax collections per capita, 2019: $825
> Income per capita, 2019: $47,460 — 11th lowest
> Louisiana’s top source of tax revenue: General sales tax
35. Alabama
> State income tax collections per capita, 2019: $856
> Income per capita, 2019: $44,145 — 5th lowest
> Alabama’s top source of tax revenue: General sales tax
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34. Indiana
> State income tax collections per capita, 2019: $900
> Income per capita, 2019: $48,678 — 15th lowest
> Indiana’s top source of tax revenue: General sales tax
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33. Oklahoma
> State income tax collections per capita, 2019: $901
> Income per capita, 2019: $47,341 — 10th lowest
> Oklahoma’s top source of tax revenue: General sales tax
32. South Carolina
> State income tax collections per capita, 2019: $924
> Income per capita, 2019: $45,438 — 7th lowest
> South Carolina’s top source of tax revenue: Property tax
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31. Idaho
> State income tax collections per capita, 2019: $934
> Income per capita, 2019: $45,968 — 8th lowest
> Idaho’s top source of tax revenue: Individual income tax
30. Arkansas
> State income tax collections per capita, 2019: $998
> Income per capita, 2019: $44,629 — 6th lowest
> Arkansas’s top source of tax revenue: General sales tax
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29. Michigan
> State income tax collections per capita, 2019: $1,016
> Income per capita, 2019: $49,228 — 18th lowest
> Michigan’s top source of tax revenue: Property tax
28. Kentucky
> State income tax collections per capita, 2019: $1,036
> Income per capita, 2019: $43,770 — 4th lowest
> Kentucky’s top source of tax revenue: Individual income tax
27. Pennsylvania
> State income tax collections per capita, 2019: $1,056
> Income per capita, 2019: $58,032 — 15th highest
> Pennsylvania’s top source of tax revenue: Property tax
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26. Missouri
> State income tax collections per capita, 2019: $1,073
> Income per capita, 2019: $48,656 — 14th lowest
> Missouri’s top source of tax revenue: Individual income tax
25. Georgia
> State income tax collections per capita, 2019: $1,147
> Income per capita, 2019: $48,236 — 13th lowest
> Georgia’s top source of tax revenue: Property tax
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24. West Virginia
> State income tax collections per capita, 2019: $1,170
> Income per capita, 2019: $42,315 — 2nd lowest
> West Virginia’s top source of tax revenue: Other taxes
23. North Carolina
> State income tax collections per capita, 2019: $1,264
> Income per capita, 2019: $47,766 — 12th lowest
> North Carolina’s top source of tax revenue: Individual income tax
22. Maine
> State income tax collections per capita, 2019: $1,271
> Income per capita, 2019: $50,634 — 21st lowest
> Maine’s top source of tax revenue: Property tax
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21. Kansas
> State income tax collections per capita, 2019: $1,297
> Income per capita, 2019: $53,426 — 23rd highest
> Kansas’s top source of tax revenue: Property tax
20. Rhode Island
> State income tax collections per capita, 2019: $1,299
> Income per capita, 2019: $56,361 — 18th highest
> Rhode Island’s top source of tax revenue: Property tax
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19. Iowa
> State income tax collections per capita, 2019: $1,299
> Income per capita, 2019: $51,865 — 23rd lowest
> Iowa’s top source of tax revenue: Property tax
18. Illinois
> State income tax collections per capita, 2019: $1,305
> Income per capita, 2019: $58,764 — 14th highest
> Illinois’s top source of tax revenue: Property tax
17. Nebraska
> State income tax collections per capita, 2019: $1,316
> Income per capita, 2019: $54,515 — 20th highest
> Nebraska’s top source of tax revenue: Property tax
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16. Montana
> State income tax collections per capita, 2019: $1,322
> Income per capita, 2019: $49,747 — 19th lowest
> Montana’s top source of tax revenue: Property tax
15. Vermont
> State income tax collections per capita, 2019: $1,379
> Income per capita, 2019: $55,293 — 19th highest
> Vermont’s top source of tax revenue: Property tax
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14. Colorado
> State income tax collections per capita, 2019: $1,419
> Income per capita, 2019: $61,157 — 11th highest0
> Colorado’s top source of tax revenue: Property tax
13. Wisconsin
> State income tax collections per capita, 2019: $1,504
> Income per capita, 2019: $53,227 — 24th highest
> Wisconsin’s top source of tax revenue: Property tax
12. Utah
> State income tax collections per capita, 2019: $1,553
> Income per capita, 2019: $48,939 — 17th lowest
> Utah’s top source of tax revenue: Individual income tax
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11. Maryland
> State income tax collections per capita, 2019: $1,665
> Income per capita, 2019: $64,640 — 7th highest
> Maryland’s top source of tax revenue: Individual income tax
10. Virginia
> State income tax collections per capita, 2019: $1,742
> Income per capita, 2019: $59,657 — 12th highest
> Virginia’s top source of tax revenue: Property tax
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9. Delaware
> State income tax collections per capita, 2019: $1,788
> Income per capita, 2019: $54,485 — 21st highest
> Delaware’s top source of tax revenue: Other taxes
8. New Jersey
> State income tax collections per capita, 2019: $1,790
> Income per capita, 2019: $70,471 — 4th highest
> New Jersey’s top source of tax revenue: Property tax
7. Hawaii
> State income tax collections per capita, 2019: $1,814
> Income per capita, 2019: $57,015 — 17th highest
> Hawaii’s top source of tax revenue: General sales tax
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6. Minnesota
> State income tax collections per capita, 2019: $2,199
> Income per capita, 2019: $58,834 — 13th highest
> Minnesota’s top source of tax revenue: Individual income tax
5. Oregon
> State income tax collections per capita, 2019: $2,335
> Income per capita, 2019: $53,191 — 25th highest
> Oregon’s top source of tax revenue: Individual income tax
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4. Connecticut
> State income tax collections per capita, 2019: $2,372
> Income per capita, 2019: $77,289 — the highest
> Connecticut’s top source of tax revenue: Property tax
3. Massachusetts
> State income tax collections per capita, 2019: $2,488
> Income per capita, 2019: $74,187 — 2nd highest
> Massachusetts’s top source of tax revenue: Property tax
2. California
> State income tax collections per capita, 2019: $2,533
> Income per capita, 2019: $66,619 — 5th highest
> California’s top source of tax revenue: Individual income tax
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1. New York
> State income tax collections per capita, 2019: $2,791
> Income per capita, 2019: $71,717 — 3rd highest
> New York’s top source of tax revenue: Individual income tax
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