10 States Where Taxpayers Have the Most Write-Offs

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Where you live can have a direct impact on your tax burden. 

While federal tax deductions remain consistent nationwide, state-level tax write-offs can impact what you pay in taxes. If you itemize rather than take the standard deduction — $14,600 for individuals and $29,200 for joint filers for the 2024 tax year — you can take advantage of these write-offs to reduce your taxable income.

Here’s what you need to know about tax write-offs and where Americans write off the most in taxes.

How Tax Write-Offs Vary by State

Tax laws can vary drastically due to variations in tax laws, cost of living, and the types of credits and deductions available. 

According to the Institute on Taxation and Economic Policy (ITEP), 33 states and Washington, D.C., allow a broad category of itemized deductions. This includes deductions for charitable gifts, home mortgage interest, medical expenses, certain state and local taxes paid, and other expenses.

State itemized deductions generally follow federal law, ITEP noted, but nearly every state makes significant changes to deductions available or the extent to which they allow certain deductions. In most cases, higher-income taxpayers are more likely to opt for itemization than lower- and middle-income taxpayers.

Where Do Taxpayers Have the Most Write-Offs?

SmartAsset uncovered where taxpayers have the most write-offs using IRS data for the 2022 tax year. Here are the top 10 states and the average itemized deduction amount.

1. Wyoming: $121,922 
2. South Dakota: $66,804 
3. Nevada: $59,492 
4. Arkansas: $58,234 
5. North Dakota: $56,945 
6. Florida: $56,217 
7. Oklahoma: $51,668 
8. New York: $47,787 
9. Texas: $47,195 
10. Utah: $46,387 

Wyoming came in first, with an itemized deduction amount nearly double that of second-place South Dakota. Wyoming’s tax system also ranked first overall on the Tax Foundation’s 2025 State Tax Competitiveness Index.

Wyoming does not tax individual or corporate income, but it does have low capital stock tax for businesses, without a maximum payment, according to the Tax Foundation. Taxes are low, and the structure of the state’s tax code means most taxes are imposed on businesses.

SmartAsset also found that Maryland, which didn’t make the top 10, has the most households itemizing deductions (20% of households), with an average deduction of $32,408. Although Utah was in 10th place, the state had the highest average tax credit use among the top 10. The average tax credit was $1,159 in Utah. The state’s average itemized deduction was $46,387.

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