file photo by Boyd Loving

April 14th 2017

the staff of the Ridgewood blog

Ridgewood NJ, with Tax Day fast approaching and Republicans planning the first major overhaul of the U.S. tax code in three decades, the personal-finance website WalletHub today released its 2017 Tax Burden by State report.

In order to determine which states tax their residents most aggressively, WalletHub’s analysts compared the 50 states based on the three components of state tax burden — property taxes, individual income taxes, and sales and excise taxes — as a share of total personal income.

States with Highest Tax Burdens (%) States with Lowest Tax Burdens (%)
1 New York (12.94%) 41 Montana (7.51%)
2 Hawaii (11.27%) 42 Wyoming (7.29%)
3 Vermont (10.75%) 43 Alabama (7.19%)
4 Maine (10.73%) 44 South Dakota (7.12%)
5 Minnesota (10.24%) 45 Florida (6.79%)
6 Connecticut (10.23%) 46 New Hampshire (6.70%)
7 New Jersey (10.14%) 47 Oklahoma (6.61%)
8 Rhode Island (10.09%) 48 Tennessee (6.45%)
9 Illinois (10.00%) 49 Alaska (6.27%)
10 California (9.52%) 50 Delaware (5.59%)

Key Stats

  • Red states have a lower overall tax burden, with an average rank of 30.27, than Blue states, which have an average rank of 18.30 (lower rank = higher tax burden).
  • New Hampshire has the highest property tax as a share of personal income, 5.33 percent, which is 3.9 times higher than in Oklahoma, the state with the lowest at 1.38 percent.
  • New York has the highest individual income taxes as a share of personal income, 4.76 percent, whereas Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming do not levy such a tax on their residents.
  • Hawaii has the highest total sales and excise tax as a share of personal income, 6.52 percent, which is 5.7 times higher than in Oregon, the state with the lowest at 1.14 percent.

To view the full report and your state’s rank, please visit:
https://wallethub.com/edu/states-with-highest-lowest-tax-burden/20494/