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10 Best and 10 Worst States for Taxes



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Unlike tax rates, tax burdens measure the amount of money taken from your personal income. Tax burdens vary depending on where you live, how much you earn, the property that you own and how you choose to spend your hard-earned paycheck. The different taxes can get confusing and quickly add up, dwindling away your disposable income.
For example, the Federal Insurance Contributions Act — aka FICA — authorizes a payroll tax that helps fund the Social Security and Medicare programs. When it comes to sales tax, individual states determine which goods and services are taxed. Some states choose not to tax clothing or groceries, whereas others may tax certain products at a lower rate. Many local governments also impose taxes on specific products, which will add to your overall tax bill.
Getting a better understanding of the average tax burden in your state can help you avoid any nasty shocks when you file your tax returns.
10th Best: Kentucky
- Median household income: $62,417
- Annual income taxes: $11,813
- Annual sales taxes: $4,308
- Annual property taxes: $1,552
- Total taxes paid: $17,672
- Total tax burden: 28.3%
9th Best: North Dakota
- Median household income: $75,949
- Annual income taxes: $13,838
- Annual sales taxes: $5,011
- Annual property taxes: $2,607
- Total taxes paid: $21,457
- Total tax burden: 28.3%
8th Best: Tennessee
- Median household income: $67,097
- Annual income taxes: $10,681
- Annual sales taxes: $6,641
- Annual property taxes: $1,518
- Total taxes paid: $18,840
- Total tax burden: 28.1%
7th Best: New Hampshire
- Median household income: $95,628
- Annual income taxes: $18,752
- Annual sales taxes: $0.00
- Annual property taxes: $8,022
- Total taxes paid: $26,773
- Total tax burden: 28%
6th Best: West Virginia
- Median household income: $57,917
- Annual income taxes: $10,624
- Annual sales taxes: $4,304
- Annual property taxes: $916
- Total taxes paid: $15,844
- Total tax burden: 27.3%
5th Best: South Dakota
- Median household income: $72,421
- Annual income taxes: $12,232
- Annual sales taxes: $4,359
- Annual property taxes: $3,055
- Total taxes paid: $19,646
- Total tax burden: 27.1%
4th Best: Alaska
- Median household income: $89,336
- Annual income taxes: $17,464
- Annual sales taxes: $1,737
- Annual property taxes: $4,105
- Total taxes paid: $23,276
- Total tax burden: 26.1%
3rd Best: Delaware
- Median household income: $82,855
- Annual income taxes: $19,530
- Annual sales taxes: $0.00
- Annual property taxes: $1,836
- Total taxes paid: $21,366
- Total tax burden: 25.8%
2nd Best: Wyoming
- Median household income: $74,815
- Annual income taxes: $13,200
- Annual sales taxes: $4,011
- Annual property taxes: $1,932
- Total taxes paid: $19,144
- Total tax burden: 25.6%
Best: Montana
- Median household income: $69,922
- Annual income taxes: $14,447
- Annual sales taxes: $0.00
- Annual property taxes: $3,126
- Total taxes paid: $17,573
- Total tax burden: 25.1%
10th Worst: Minnesota
- Median household income: $87,556
- Annual income taxes: $21,061
- Annual sales taxes: $5,920
- Annual property taxes: $3,295
- Total taxes paid: $30,276
- Total tax burden: 34.6%
9th Worst: Rhode Island
- Median household income: $86,372
- Annual income taxes: $18,824
- Annual sales taxes: $3.080
- Annual property taxes: $18,824
- Total taxes paid: $30,782
- Total tax burden: .35.6%
8th Worst: Hawaii
- Median household income: $98,317
- Annual income taxes: $26,872
- Annual sales taxes: $6,420
- Annual property taxes: $2,551
- Total taxes paid: $35,842
- Total tax burden: 36.5%
7th Worst: Vermont
- Median household income: $78,024
- Annual income taxes: $16,959
- Annual sales taxes: $5,607
- Annual property taxes: $6,065
- Total taxes paid: $28,631
- Total tax burden: 36.7%
6th Worst: Illinois
- Median household income: $81,702
- Annual income taxes: $18,899
- Annual sales taxes: $6,535
- Annual property taxes: $5,272
- Total taxes paid: $30,707
- Total tax burden: 37.6%
5th Worst: Connecticut
- Median household income: $93,760
- Annual income taxes: $22,876
- Annual sales taxes: $5,481
- Annual property taxes: $7,662
- Total taxes paid: $36,019
- Total tax burden: 38.4%
4th Worst: Massachusetts
- Median household income: $101,341
- Annual income taxes: $25,416
- Annual sales taxes: $7,095
- Annual property taxes: $6,685
- Total taxes paid: $39,197
- Total tax burden: 38.7%
3rd Worst: California
- Median household income: $96,334
- Annual income taxes: $23,902
- Annual sales taxes: $9,898
- Annual property taxes: $5,397
- Total taxes paid: $39,197
- Total tax burden: 40.7%
2nd Worst: New York
- Median household income: $84,578
- Annual income taxes: $19,374
- Annual sales taxes: $8,136
- Annual property taxes: $7,082
- Total taxes paid: $34,952
- Total tax burden: 41.3%
Worst: New Jersey
- Median household income: $101,050
- Annual income taxes: $24,699
- Annual sales taxes: $5,856
- Annual property taxes: $11,572
- Total taxes paid: $42,127
- Total tax burden: 41.7%
Jordan Rosenfeld contributed to a previous version of this article.
Methodology: To generate the tax bill in every state, GOBankingRates surveyed three key taxes: (1) income taxes at both the Federal and State level (including FICA), (2) property taxes and (3) sales taxes. Incomes are based on 2023 American Community Survey median household figures, and income tax estimates were created by using an in-house calculator for a person who was filing their taxes as a single person and using the standard deduction (with 2024 tax brackets). Property taxes were calculated using each state’s average rate as sourced from Tax Foundation and Zillow’s median home value index data as of December 2024. Sales taxes were calculated using each state’s “state and local combined sales tax rate,” sourced from Tax Foundation, and factored against each state’s average annual consumer expenditure. Estimates on annual consumer expenditure in each state were created by taking the Bureau of Labor Statistics’ 2023 Consumer Expenditure Survey’s national average annual expenditures estimate and factoring it out for each state using the Missouri Economic Research and Information Center’s cost of living indices for the third quarter of 2024. Once the three above taxes were calculated as an annual amount, GOBankingRates found each state’s (4) total annual taxes paid and (5) total tax burden. States were then ranked exclusively by factor (5). All data was rounded to the nearest dollar, and collected on and up to date as of Jan. 29, 2025.
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