These States Hit Middle-Class Earners Hardest at Tax Time
Written by
Gabriel Vito
Edited by
Rebekah Evans
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Tax season has a way of reminding people that where you live matters almost as much as what you earn.
State and local taxes stack differently depending on your zip code. And for middle-class families, the gap between states can be thousands of dollars a year.
To find the hardest-hit states, we looked at how much households earning near each state’s median income actually pay across income taxes, property taxes and sales taxes on everyday essentials. The figures come from Kiplinger’s 2025 analysis, which measures the total tax burden as a percentage of household income. This is a clearer way to compare what families actually pay than looking at tax brackets alone. Here are the states that hit middle-class earners the hardest during tax time.
Â
Â
New York
The average middle class family spends about 13% of their income on state taxes, which translates to roughly $11,170 a year. Much of it is driven by property taxes that average $6,542 according to Kiplinger. New York City residents pay even more, thanks to a local income tax layered on top.
Â
California
California is close behind at 12.7% or about $12,730 annually for a household near the state median of $100,000. Property taxes vary wildly within the state. Some homeowners pay under $2,000, others more than $9,000, according to Kiplinger.
IllinoisÂ
The state hits families with a flat income tax and some of the highest property taxes in the country. Illinois eliminated its statewide grocery tax in January 2026, though more than half of its municipalities have since passed their own 1% replacement. Kiplinger puts the total burden at about 12% of median income or roughly $10,065 a year.
Maryland
Maryland’s income tax bill is one of the steepest in Kiplinger’s analysis, pushing the average family’s burden above 11% of income, despite a median household income of over $100,000.
MassachusettsÂ
Property taxes are the main character here. SmartAsset reported the median annual bill hits $6,080, higher than all but four other states, with some counties pushing well past $7,500. Add a flat 5% state income tax that applies equally regardless of what you earn and Kiplinger estimated the average middle-class household un Massachusetts pays more than $11,500 a year in combined state taxes.
The takeaway from this list isn’t that high-tax states are bad places to live. Many offer strong schools, infrastructure and services. But understanding your full state and local tax picture matters, especially if you’re comparing job offers, planning a move or just trying to figure out why your refund keeps shrinking.
More From GoBankingRates
