There are seven states that do not impose income taxes on their residents, and most of them are among the 10 with the lowest tax burdens, according to a new WalletHub’s report.
Unlike tax rates, the tax burden measures the proportion of total personal income that residents pay toward state and local taxes.
To determine which of the 50 states tax their residents the most and least, WalletHub compared three types of state tax burden—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 noted that red states have a lower tax burden, with an average rank of 31.60, while blue states have a higher one, with an average rank of 19.36.
Here, from highest to lowest, are the 10 states with the lowest tax burdens:
10. Oklahoma
Oklahoma has a tax burden of 7.47%. The state’s property tax burden is 1.74% (48th), its individual income tax burden is 1.90% (36th) and its total sales and excise tax burden is 3.83% (17th).
9. Alabama
Alabama has a tax burden of 7.41%. The state’s property tax burden is 1.41% (50th), its individual income tax burden is 2.00% (35th) and its total sales and excise tax burden is 4.00% (13th).
8. Montana
Montana has a tax burden of 7.39%. The state’s property tax burden is 3.45% (13th), its individual income tax burden is 2.66% (15th) and its total sales and excise tax burden is 1.28% (47th).
7. South Dakota
South Dakota has a tax burden of 7.12%. The state’s property tax burden is 2.84% (23rd), its individual income tax burden is 0.00% (44th) and its total sales and excise tax burden is 4.28% (ninth).
6. Florida
Florida has a tax burden of 6.64%. The state’s property tax burden is 2.77% (28th), its individual income tax burden is 0.00% (44th) and its total sales and excise tax burden is 3.87% (16th).
5. New Hampshire
New Hampshire has a tax burden of 6.41%. The state’s property tax burden is 5.11% (third), its individual income tax burden is 0.14% (42nd) and its total sales and excise tax burden is 1.16% (49th).
4. Wyoming
Wyoming has a tax burden of 6.32%. The state’s property tax burden is 3.32% (15th), its individual income tax burden is 0.00% (44th) and its total sales and excise tax burden is 3.00% (35th).
3. Delaware
Delaware has a tax burden of 6.22%. The state’s property tax burden is 1.77% (46th), its individual income tax burden is 3.28% (seventh) and its total sales and excise tax burden is 1.17% (48th).
2. Tennessee
Tennessee has a tax burden of 5.75%. The state’s property tax burden is 1.71% (49th), its individual income tax burden is 0.06% (43rd) and its total sales and excise tax burden is 3.98% (14th).
1. Alaska
Alaska has a tax burden of 5.06%. The state’s property tax burden is 3.54% (11th), its individual income tax burden is 0.00 (44th) and its total sales and excise tax burden is 1.52% (46th).
The full report can be viewed here.
