“To determine the residents with the biggest tax burdens, WalletHub compared the 50 states based on the cost of three types of taxes — property taxes, individual income taxes, and sales and excise taxes — as a share of total personal income in the state,” reported the study.
Key Findings
- New York has the highest overall tax burden, while Alaska has the lowest.
- Maine has the highest property tax burden, while Alabama has the lowest.
- Rhode Island has the 7th highest property tax burden.
- California has the highest individual income tax burden, while seven states (including Texas, Florida and Washington) have the lowest.
- Washington has the highest sales and excise tax burden, while New Hampshire has the lowest.
- New Hampshire is ranked 49th overall with the second lowest tax burden.
- Red states have a lower tax burden than blue states, on average.
“It’s easy to be dismayed at tax time when you see just how much of your income you lose. Living in a state with a low tax burden can alleviate some of that stress. Some states charge no income tax or no sales tax, although all states have some form of property taxes and excise taxes,” said Cassandra Happe, WalletHub Analyst.
