A recent analysis determined which states tax their residents most and why.

24/7 Wall St. reviewed the total tax payments as a share of income on a per capita basis to identify the states with the lowest and highest tax burden. Federal taxes were not included in the calculation.

Overall, New York ranked first out of 50 states. North Dakota and Hawaii are also among the states that pay the most in taxes. See how these findings compare to the Tax Foundation.

Other findings include:

  • States were ranked by residents who pay the most ranked first to the least ranked last. Overall, New York ranked first out of 50 states, with North Dakota, Hawaii, Vermont and Maine rounding out the top five most burdened states.
  • Property taxes–often set by municipalities–account for the largest share of state and local government revenue on average nationwide.
  • The states with the highest overall tax burdens tend to have higher than average property taxes.
  • The seven states without personal income taxes have a lower overall tax burden than the national average.

Data on state and local tax collections came from the U.S. Census Bureau’s 2017 Census of Governments. Data on personal income and population was collected from the Bureau of Economic Analysis.

The 24/7 Wall St. report identified the following states where residents pay the least taxes:

  1. Alaska
  2. Tennessee
  3. Florida
  4. Oklahoma
  5. Arizona
  6. Alabama
  7. Wyoming
  8. Missouri
  9. South Carolina
  10. New Hampshire

Read the report: States Where Americans Are Paying the Most Taxes

Let’s Talk Tax

Judy Vorndran can be reached at jvorndran@taxops.com or 720.227.0093. 

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