This year, Uncle Sam will take his cut of the past year’s earnings on April 18. Many taxpayers are undoubtedly wondering how this year’s Tax Day will affect their finances, as a lot of people are still struggling financially as a result of the pandemic. Since the tax code is so complicated and has rules based on individual household characteristics, it’s hard for the average person to tell how they will be impacted.
One simple ratio known as the “tax burden” helps cut through the confusion. Unlike tax rates, which vary widely based on an individual’s circumstances, tax burden measures the proportion of total personal income that residents pay toward state and local taxes. And it isn’t uniform across the U.S., either.
To determine the residents with the biggest tax burdens, WalletHub compared the 50 states across the three tax types of state tax burdens — property taxes, individual income taxes and sales and excise taxes — as a share of total personal income in the state.
For more fun (or not so fun) facts about 2023’s tax landscape, check out WalletHub’s Tax Day Facts infographic.
Main Findings
Overall Tax Burden by State
| Overall Rank* | State | Total Tax Burden (%) |
Property Tax Burden (%) |
Individual Income Tax Burden (%) |
Total Sales & Excise Tax Burden (%) |
|---|---|---|---|---|---|
| 1 | New York | 12.47% | 4.36% (5) | 4.72% (1) | 3.39% (24) |
| 2 | Hawaii | 12.31% | 2.74% (26) | 2.86% (10) | 6.71% (1) |
| 3 | Maine | 11.14% | 5.33% (1) | 2.52% (14) | 3.29% (26) |
| 4 | Vermont | 10.28% | 4.98% (2) | 2.07% (27) | 3.23% (27) |
| 5 | Connecticut | 9.83% | 4.24% (6) | 2.92% (9) | 2.67% (40) |
| 6 | New Jersey | 9.76% | 4.88% (4) | 2.36% (17) | 2.52% (43) |
| 7 | Maryland | 9.44% | 2.66% (31) | 4.21% (2) | 2.57% (41) |
| 8 | Minnesota | 9.41% | 2.89% (22) | 3.11% (6) | 3.41% (23) |
| 9 | Illinois | 9.38% | 3.66% (10) | 2.27% (22) | 3.45% (22) |
| 10 | Iowa | 9.15% | 3.40% (14) | 2.41% (16) | 3.34% (25) |
| 11 | Rhode Island | 9.07% | 4.17% (7) | 1.93% (33) | 2.97% (33) |
| 12 | California | 8.89% | 2.79% (23) | 3.05% (7) | 3.05% (31) |
| 13 | Nebraska | 8.84% | 3.67% (9) | 2.19% (24) | 2.98% (32) |
| 14 | New Mexico | 8.83% | 1.95% (43) | 1.26% (39) | 5.62% (3) |
| 15 | Kansas | 8.71% | 3.08% (17) | 2.07% (27) | 3.56% (19) |
| 16 | Ohio | 8.65% | 2.74% (26) | 2.28% (21) | 3.63% (16) |
| 17 | Wisconsin | 8.62% | 3.12% (16) | 2.63% (13) | 2.87% (37) |
| 18 | Indiana | 8.58% | 2.22% (39) | 2.73% (12) | 3.63% (16) |
| 19 | Mississippi | 8.56% | 2.76% (24) | 1.49% (38) | 4.31% (8) |
| 20 | Massachusetts | 8.48% | 3.42% (13) | 3.22% (4) | 1.84% (45) |
| 21 | Kentucky | 8.43% | 1.93% (44) | 3.04% (8) | 3.46% (21) |
| 22 | Arkansas | 8.40% | 1.68% (48) | 2.04% (29) | 4.68% (5) |
| 23 | West Virginia | 8.36% | 2.23% (38) | 2.43% (15) | 3.70% (14) |
| 24 | Colorado | 8.28% | 3.05% (19) | 2.04% (29) | 3.19% (28) |
| 25 | Washington | 8.24% | 2.58% (32) | 0.00% (44) | 5.66% (2) |
| 26 | Virginia | 8.23% | 2.97% (21) | 2.82% (11) | 2.44% (44) |
| 27 | Utah | 8.08% | 2.34% (37) | 2.20% (23) | 3.54% (20) |
| 28 | Louisiana | 8.05% | 1.80% (46) | 1.66% (37) | 4.59% (6) |
| 29 | Texas | 8.01% | 4.00% (8) | 0.00% (44) | 4.01% (11) |
| 30 | Pennsylvania | 7.95% | 2.71% (28) | 2.32% (19) | 2.92% (36) |
| 31 | Oregon | 7.80% | 3.07% (18) | 3.62% (3) | 1.11% (48) |
| 32 | Nevada | 7.69% | 2.13% (41) | 0.00% (44) | 5.56% (4) |
| 33 | Idaho | 7.64% | 2.35% (35) | 2.15% (25) | 3.14% (29) |
| 34 | Arizona | 7.62% | 2.35% (35) | 1.23% (40) | 4.04% (9) |
| 35 | North Carolina | 7.60% | 2.12% (42) | 2.35% (18) | 3.13% (30) |
| 36 | Georgia | 7.46% | 2.58% (32) | 2.11% (26) | 2.77% (38) |
| 37 | South Carolina | 7.44% | 2.69% (29) | 2.03% (31) | 2.72% (39) |
| 38 | Michigan | 7.40% | 3.02% (20) | 1.81% (35) | 2.57% (41) |
| 39 | Alabama | 7.35% | 1.39% (50) | 1.93% (33) | 4.03% (10) |
| 40 | North Dakota | 7.34% | 2.54% (34) | 0.80% (41) | 4.00% (12) |
| 41 | Oklahoma | 7.12% | 1.76% (47) | 1.69% (36) | 3.67% (15) |
| 42 | Missouri | 7.11% | 2.16% (40) | 1.99% (32) | 2.96% (34) |
| 43 | Montana | 6.93% | 3.40% (14) | 2.32% (19) | 1.21% (47) |
| 44 | South Dakota | 6.69% | 2.69% (29) | 0.00% (44) | 4.00% (12) |
| 45 | Wyoming | 6.42% | 3.47% (12) | 0.00% (44) | 2.95% (35) |
| 46 | Florida | 6.33% | 2.75% (25) | 0.00% (44) | 3.58% (18) |
| 47 | Tennessee | 6.22% | 1.66% (49) | 0.02% (43) | 4.54% (7) |
| 48 | New Hampshire | 6.14% | 4.94% (3) | 0.13% (42) | 1.07% (50) |
| 49 | Delaware | 6.12% | 1.88% (45) | 3.15% (5) | 1.09% (49) |
| 50 | Alaska | 5.06% | 3.59% (11) | 0.00% (44) | 1.47% (46) |
Note: *No. 1 = Highest
- Highest
- 1. Maine
- 2. Vermont
- 3. New Hampshire
- 4. New Jersey
- 5. New York
- Lowest
- 46. Louisiana
- 47. Oklahoma
- 48. Arkansas
- 49. Tennessee
- 50. Alabama
- Highest
- 1. New York
- 2. Maryland
- 3. Oregon
- 4. Massachusetts
- 5. Delaware
- Lowest
- T-44. Alaska
- T-44. Florida
- T-44. Nevada
- T-44. South Dakota
- T-44. Texas
- T-44. Washington
- T-44. Wyoming
- Highest
- 1. Hawaii
- 2. Washington
- 3. New Mexico
- 4. Nevada
- 5. Arkansas
- Lowest
- 46. Alaska
- 47. Montana
- 48. Oregon
- 49. Delaware
- 50. New Hampshire
Blue States vs. Red States
Ask the Experts
For more insight on the differences in state tax policies, we asked a panel of taxation experts to weigh in with their thoughts on the following key questions:
- What state and local tax instruments are most fair? Least fair?
- What’s the relationship between state tax burden and economic growth?
- Should states and localities tax property at different marginal rates like they do income?
- What makes some state and local taxes systems better able to weather economic downturns?
- How will inflation affect local governments' tax revenues?
Ask the Experts
CPA/PFS CGMA – Assistant Teaching Professor, Accounting; Program Coordinator of the FSUPC Accounting and Financial Planning Programs – Florida State University, Panama City
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Professor of Law – Syracuse University College of Law
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Ph.D., CPA – Assistant Professor, Accounting, Neeley School of Business – Texas Christian University
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John B. Milliken Professor of Law and Taxation, Gould School of Law – University of Southern California
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Leon Benwell Professor of Law, and Professor of Law and Accounting, Gould School of Law – University of Southern California
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D.B.A. – Associate Professor of Accounting and Taxation – University of New Haven
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Methodology
In order to determine the states that tax their residents the most and least aggressively, WalletHub compared the 50 states across the following three tax burdens and added the results to obtain the overall tax burden for each state:
- Property Tax as a Share of Personal Income
- Individual Income Tax as a Share of Personal Income
- Total Sales & Excise Tax as a Share of Personal Income
Sources: Data used to create this ranking were collected from the Tax Policy Center.
