There are large differences in the tax burden that U.S. states and local governments place on their residents, according to WalletHub’s 2022 Tax Burden by State report.
Tax burden measures the proportion of total personal income that residents pay toward state and local taxes.
To determine the states that tax their residents the most and least, WalletHub compared the 50 states across the three tax types of state tax burdens — property taxes, individual income taxes and sales and excise taxes — as a share of total personal income in the state. The results were added to obtain the overall tax burden for each state.
The report also revealed that red states have a lower tax burden, with an average rank of 31.60, than blue states, with an average rank of 19.36.
Here, in ascending order, are the 10 states with the highest tax burdens:
10. Illinois
Illinois has a tax burden of 9.70%. The state’s property tax burden is 3.98% (eighth), its individual income tax burden is 2.22% (30th) and its total sales and excise tax burden is 3.50% (23rd).
9. California
California has a tax burden of 9.72%. The state’s property tax burden is 2.76% (30th), its individual income tax burden is 3.80% (fourth) and its total sales and excise tax burden is 3.16% (32nd).
8. Rhode Island
Rhode Island has a tax burden of 9.91%. The state’s property tax burden is 4.48% (fifth), its individual income tax burden is 2.31% (28th) and its total sales and excise tax burden is 3.12% (34th).
7. Connecticut
Connecticut has a tax burden of 10.06%. The state’s property tax burden is 4.16% (seventh), its individual income tax burden is 3.07% (11th) and its total sales and excise tax burden is 2.83% (41st).
6. New Jersey
New Jersey has a tax burden of 10.11%. The state’s property tax burden is 4.98% (fourth), its individual income tax burden is 2.54% (20th) and its total sales and excise tax burden is 2.59% (43rd).
5. Minnesota
Minnesota has a tax burden of 10.20%. The state’s property tax burden is 2.93% (22nd), its individual income tax burden is 3.74% (fifth) and its total sales and excise tax burden is 3.53% (22nd).
4. Vermont
Vermont has a tax burden of 11.13%. The state’s property tax burden is the second highest of all states (5.31%), its individual income tax burden is 2.49% (22nd) and its total sales and excise tax burden is 3.33% (27th).
3. Maine
Maine has a tax burden of 11.42%. The state’s property tax burden is the highest of all states (5.48%), its individual income tax burden is 2.51% (21st) and its total sales and excise tax burden is 3.43% (24th).
2. Hawaii
Hawaii has a tax burden of 12.70%. The state’s property tax burden is 2.55% (34th), its individual income tax burden is 3.18 (eighth) and its total sales and excise tax burden is the highest of all states (6.97%).
1. New York
New York has a tax burden of 12.75%. The state’s property tax burden is 4.4% (sixth), its individual income tax burden is 4.9%, the highest of all states, and its total sales and excise tax burden is 3.4% (25th).
The full report can be viewed here.
