Tax Burden By State 2019

Taxes are a necessary evil when you live in the United States. Not only do you have to pay federal taxes, but you also have to pay taxes to your state. While it can be a burden, these tax dollars are critical to the state’s revenue, which is used to build and repair critical infrastructure, fund state programs, and for other important purposes.

Not only do state taxes cut into your household income, but understanding how much you have to pay can be confusing. Each state has its own rules surrounding different types of taxes and each taxpayer’s circumstances (i.e., is the taxpayer married or does the taxpayer have dependents?) To make it easier to understand how much a person has to pay in each state, we can look at a ratio known as the tax burden.

The tax burden is a measure of all of the total income that residents of a state pay in state and local taxes. For this article, we’re going to take a look at the states that have the highest and lowest tax burdens based on data compiled by WalletHub. Each tax burden listed here takes into account property taxes, income taxes, and sales and excise taxes.

The state with the highest tax burden based on these three types of taxes is New York. The total tax burden of New York is 12.97%. Hawaii isn’t too far behind with a total tax burden of 11.71%. Maine comes in third place with a tax burden of 10.84%.

Other states with a total tax burden higher than 10% are Vermont, Minnesota, and Rhode Island.

The state with the lowest tax burden is Alaska at 5.1%. Delaware’s total tax burden isn’t much higher at 5.55%. The state of Tennessee has the third lowest tax burden at 6.28%.

When breaking down tax burdens by category, New Hampshire has the highest property tax burden in the nation at 5.45%. Vermont and New Jersey also have property tax burdens that exceed 5%.

The lowest property tax burden is in Alabama, where the rate is 1.39%. Oklahoma, Arkansas, Delaware, Tennessee, Kentucky, and New Mexico also have property taxes that fall below 2%.

When it comes to the individual income tax burden, New York has the highest at 4.81%. Oregon also has an income tax burden that exceeds 4%. Several states have no income taxes. These states are Nevada, Washington, Florida, South Dakota, Alaska, Texas, and Wyoming.

When looking at the sales and excise tax burden, Hawaii has the highest in the nation at 6.56%. Nevada has the second highest at 6.02%. The lowest sales and excise tax burden can be found in Oregon, where the rate is 1.09%.

Overall Rank State Total Tax Burden Property Tax Burden Indiv. Income Tax Burden Tot. Sales & Excise Tax Burden
1New York12.97%4.57%4.81%3.59%
2Hawaii11.71%2.24%2.91%6.56%
3Maine10.84%4.74%2.60%3.50%
4Vermont10.77%5.12%2.31%3.34%
5Minnesota10.25%2.97%3.68%3.60%
6Rhode Island10.20%4.75%2.30%3.15%
7New Jersey9.86%5.05%2.40%2.41%
8Connecticut9.70%4.21%3.03%2.46%
9Illinois9.67%4.04%2.05%3.58%
10Iowa9.49%3.41%2.52%3.56%
11California9.47%2.71%3.57%3.19%
12Ohio9.31%2.80%2.54%3.97%
13Maryland9.26%2.63%3.87%2.76%
14Nebraska9.21%3.84%2.37%3.00%
15West Virginia9.18%2.48%2.73%3.97%
16Wisconsin9.15%3.42%2.73%3.00%
17Arkansas9.11%1.79%2.34%4.98%
18Mississippi9.02%2.76%1.68%4.58%
19Massachusetts8.90%3.62%3.24%2.04%
20Kansas8.77%3.14%1.62%4.01%
20Kentucky8.77%1.96%3.22%3.59%
22New Mexico8.66%1.97%1.74%4.95%
23Pennsylvania8.58%2.87%2.57%3.14%
24Louisiana8.51%2.08%1.44%4.99%
25Michigan8.40%3.16%2.20%3.04%
26North Carolina8.38%2.28%2.78%3.32%
27Arizona8.26%2.61%1.41%4.24%
27Utah8.26%2.42%2.63%3.21%
29Nevada8.26%2.24%0.00%6.02%
30Oregon8.25%3.11%4.05%1.09%
31Indiana8.22%2.22%2.26%3.74%
32Washington8.20%2.59%0.00%5.61%
33Texas8.18%3.82%0.00%4.36%
34Colorado8.15%2.72%2.24%3.19%
35Georgia8.10%2.72%2.37%3.01%
36Missouri7.86%2.23%2.42%3.21%
37North Dakota7.83%2.46%0.88%4.49%
38Virginia7.80%2.90%2.73%2.17%
39Idaho7.75%2.33%2.24%3.18%
40South Carolina7.55%2.89%1.94%2.72%
41Wyoming7.51%4.32%0.00%3.19%
42Alabama7.28%1.39%1.89%4.00%
42South Dakota7.28%2.87%0.00%4.41%
44Montana7.27%3.44%2.58%1.25%
45Oklahoma7.12%1.66%1.82%3.64%
46New Hampshire6.86%5.45%0.12%1.29%
47Florida6.56%2.74%0.00%3.82%
48Tennessee6.28%1.90%0.11%4.27%
49Delaware5.55%1.79%2.55%1.21%
50Alaska5.10%3.66%0.00%1.44%