The state with the highest tax burden is Calfornia, with a personal income tax of 9.3% and sales tax of 7.3%.
The state with the lowest tax burden is Wyoming, with a no income tax and sales tax of 4%.
There are 9 states with no income tax, including: Wyoming, Alaska, South Dakota, Florida, Tennessee, Nevada, New Hampshire, Washington, and Texas.
There are only 5 states with no sales tax, including: Oregon, Montana, Deleware, New Hampshire, and Alaska.
No one likes paying taxes. Yet, like death, taxes are inevitable.
The tax code is thousands of pages long, with different rates and intricate rules based on earnings and family situations. While the federal tax code is applied evenly throughout the country, each state has there own tax rates. This means citizens in some states enjoy a light tax load, while others are drowning in tax obligations.
We analyzed state tax codes across the 50 states to find where in the country people have the heaviest tax load.
Rather than look flatly at taxes, we analyzed the “tax burden” residents of each state can expect from personal income tax, property tax, and sales tax. Tax burden looks at the percent of taxation as percent of income. “Most” is an ambiguous term; For instance, depending upon your income, 1,000 dollars may be a lot or a little.
We looked at tax burden to find the states where people pay more of their money proportionately than any other state.
We have a ranked list of all 50 states at the bottom, from most aggressively taxed to least, in addition to a list of the states with the highest personal income tax, property tax, and sales tax. First, let’s examine the states where the tax man is the most heavy-handed.
States Where People Pay The Most In Taxes
California is the state where people are the most burdened by state taxes. While California, New Jersey, and New York may be notorious for their level of taxation, other states on the list such as Iowa may be a bit of a surprise. You can read our methodology below, and where the other 40 states stacked up.
Methodology – How We Determined The States With The Most (And Least) Tax Burden
To find the states that tax their residents the most and least aggressively, we ranked the 50 states on three criteria:
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Property Tax
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Individual Income Tax
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Total Sales Tax
Each of the above criteria was ranked based on the percent of income. Property tax and individual income were weighted together and makeup 70% of each state’s score. To put a “dollar amount” to income, we pulled from the median state income. To put a dollar amount to home value, each state’s percent of property tax was applied to the state’s median home price. The two numbers were added together and the total was applied to the median income to get a combined tax burden for property and income tax. Sales tax makes up the remaining 30% of the ranking.o local taxes or excise taxes were used in our rankings. However, these can vary dramatically from city to city.
We collected the above data from a combination of the Tax Foundation and scouring state tax documents. The median state income and home prices came from the Census’ most recent American Community Survey.
The full ranked list of states from the greatest to least tax burden is located at the bottom of the article.
1. California
Personal Income Tax: 9.30%
Property Tax: 0.74%
Sales Tax: 7.3
Californians have the highest tax burden of any state in the US. Personal income tax is the highest in the nation at a staggering 9.3% and the state also has the highest sales tax at 7.3%. While property tax is low, home prices in California are high with a median price of 475,900.00– which leaves Californians shelling out more combined state taxes from their pay than anywhere else.
2. New Jersey
Personal Income Tax: 5.53%
Property Tax: 1.89%
Sales Tax: 6.6
New Jersey has one of the fastest population declines in the nation. While people move for a variety of reasons, New Jersey has steep taxes that cut some New Jersey residents deep. The median home price in New Jersey is $327,900, one of the highest in the nation. That high home price is paired with the highest state property tax rates in the nation, almost 2%.
3. Vermont
Personal Income Tax: 6.60%
Property Tax: 1.59%
Sales Tax: 6.0
Vermont residents owe 6.6% of their state income to the government. Vermont residents also pay a fairly high state tax sales of 6%. That means anytime they buy delicious Vermont cheese or maple syrup, they better be ready to pay those state taxes.
4. Connecticut
Personal Income Tax: 5.50%
Property Tax: 1.63%
Sales Tax: 6.4
Connecticut’s high property tax of 1.6% has Connecticuters paying a significant chunk of their pay on property taxes.
5. Oregon
Personal Income Tax: 9.00%
Property Tax: 0.87%
Sales Tax: 0
Oregon may have no state sales tax, but they make up for it with the second highest personal income tax in the nation. Even Oregon’s middle of the road property tax can’t make up the difference.
6. New York
Personal Income Tax: 6.21%
Property Tax: 1.23%
Sales Tax: 4.0
New Yorkers know New York is expensive. However, the average New Yorker may not know they have the 6th highest tax burden in the nation. Our data didn’t look into excise or “sin” taxes, but New York packs an extra punch there as well with high taxes on goods like cigarettes. New York is the only state losing people faster than New Jersey.
7. Wisconsin
Personal Income Tax: 6.27%
Property Tax: 1.76%
Sales Tax: 5.0
Wisconsin is the first Midwestern state to make the list, and has the 7th highest state tax burden. Wisconsin may have low home prices compared to the rest of the nation, but it has the salaries to match. Wisconsin residents are paying the 4th largest property taxes on reasonably priced houses, but that comes out to a decent chunk of their income.
8. Nebraska
Personal Income Tax: 6.84%
Property Tax: 1.76%
Sales Tax: 5.5
The Cornhusker State has the eighth highest tax burden in the nation. Nebraskans have an average income of $59,566 and pay a disproportionate amount in state taxes. Their biggest tax? Property tax.
9. Iowa
Personal Income Tax: 7.44%
Property Tax: 1.29%
Sales Tax: 6.0
Iowa is often touted for reasonable prices and affordable living. However, middle-class Iowans pay the fourth highest state income tax in the nation. While Iowa’s reasonable real estate and other affordable cost of living might still be a draw, Iowans are paying a sizable chunk of their incomes in state taxes.
10. Maine
Personal Income Tax: 7.15%
Property Tax: 1.09%
Sales Tax: 5.5
Right behind Iowa in tax burden and personal income tax is Maine. The northeastern state does have one tax advantage- their sales tax is below the average.
States With The Highest Property Tax And The Lowest
Louisiana has the lowest state property tax at 0.18%, while New Jersey has the highest at 1.89%.
States With The Highest Sales Tax And The Lowest
All of the lowest sales tax states have no state sales tax. However, we did not look at local or city sales taxes, so residents in some cities in these states do have steep sales taxes of their own. California has the highest state sales tax at a whopping 7.3%.
States With The Highest Personal Income Tax And The Lowest
California has the highest income tax at 9.30%. Tennessee, Nevada, Washington, Texas, Florida, South Dakota, Wyoming, New Hampshire, and Alaska all have no personal income tax. However, it is worth noting that no personal income tax is usually paired with higher sales and/or property tax.
Summary On State’s With The Highest Tax Burdens
Tax is a complicated issue, with different tax breaks and brackets based on income and household size. However, some states quite simply tax more than others. Between property taxes, sales tax, and personal income there are a variety of ways for states to get revenue– and often a low tax in one area means a higher rate in another.
When contemplating an interstate job move, savvy job hunters know that the salary is just one component to investigate, as higher taxes can take a deep chunk of that anticipated pay raise. Which states offer job seekers the least tax obligations?
States With The Lowest Tax Burdens
- Wyoming
- Alaska
- South Dakota
- Florida
- Tennessee
- Nevada
- Alabama
- New Hampshire
- Washington
- Texas
- North Dakota
States With The Most (And Least) Tax Burdens
| Most To Least | State | Individual Income Tax | Property Tax | Sales Tax |
|---|---|---|---|---|
| 1 | California | 9.30% | 0.74% | 7% |
| 2 | New Jersey | 5.53% | 1.89% | 6% |
| 3 | Vermont | 6.60% | 1.59% | 6% |
| 4 | Connecticut | 5.50% | 1.63% | 6% |
| 5 | Oregon | 9.00% | 0.87% | 0% |
| 6 | New York | 6.21% | 1.23% | 4% |
| 7 | Wisconsin | 6.27% | 1.76% | 5% |
| 8 | Nebraska | 6.84% | 1.76% | 5% |
| 9 | Iowa | 7.44% | 1.29% | 6% |
| 10 | Maine | 7.15% | 1.09% | 5% |
| 11 | Minnesota | 6.80% | 1.05% | 6% |
| 12 | Illinois | 4.95% | 1.73% | 6% |
| 13 | Massachusetts | 5.05% | 1.04% | 6% |
| 14 | Rhode Island | 3.75% | 1.35% | 7% |
| 15 | Montana | 6.90% | 0.83% | 0% |
| 16 | Hawaii | 8.25% | 0.26% | 4% |
| 17 | Idaho | 6.93% | 0.69% | 6% |
| 18 | Kansas | 5.70% | 1.29% | 6% |
| 19 | South Carolina | 7.00% | 0.50% | 6% |
| 20 | Michigan | 4.25% | 1.62% | 6% |
| 21 | Virginia | 5.75% | 0.74% | 4% |
| 22 | Maryland | 4.75% | 0.87% | 6% |
| 23 | West Virginia | 6.50% | 0.49% | 6% |
| 24 | Delaware | 6.60% | 0.43% | 0% |
| 25 | Georgia | 5.75% | 0.83% | 4% |
| 26 | Arkansas | 5.90% | 0.52% | 6% |
| 27 | Missouri | 5.40% | 0.91% | 4% |
| 28 | North Carolina | 5.25% | 0.78% | 4% |
| 29 | Kentucky | 5.00% | 0.72% | 6% |
| 30 | Pennsylvania | 3.07% | 1.35% | 6% |
| 31 | Utah | 4.95% | 0.60% | 4% |
| 32 | Colorado | 4.63% | 0.60% | 2% |
| 33 | Oklahoma | 5.00% | 0.74% | 4% |
| 34 | Mississippi | 5.00% | 0.52% | 7% |
| 34 | New Mexico | 4.90% | 0.55% | 5% |
| 36 | Ohio | 3.33% | 1.36% | 5% |
| 37 | Arizona | 4.17% | 0.72% | 5% |
| 38 | Louisiana | 6.00% | 0.18% | 4% |
| 38 | Indiana | 3.23% | 0.85% | 7% |
| 40 | North Dakota | 2.04% | 1.42% | 5% |
| 41 | Texas | 0.00% | 1.81% | 6% |
| 42 | Washington | 0.00% | 0.92% | 6% |
| 43 | New Hampshire | 0.00% | 1.86% | 0% |
| 44 | Alabama | 5.00% | 0.33% | 4% |
| 45 | Nevada | 0.00% | 0.84% | 6% |
| 46 | Tennessee | 0.00% | 0.68% | 7% |
| 47 | Florida | 0.00% | 0.97% | 6% |
| 48 | South Dakota | 0.00% | 1.28% | 4% |
| 49 | Alaska | 0.00% | 1.04% | 0% |
| 50 | Wyoming | 0.00% | 0.58% | 4% |
Author
Kathy is the head of content at Zippia with a knack for engaging audiences. Prior to joining Zippia, Kathy worked at Gateway Blend growing audiences across diverse brands. She graduated from Troy University with a degree in Social Science Education.
