You’ll Pay the Most in Taxes in These States
Each year, Americans dread April 15 — Tax Day. However, the IRS announced in March that American taxpayers would have an extra month to file their federal income taxes, pushing Tax Day to May 17 in the wake of the COVID-19 pandemic. However, state filings will still proceed as planned in most places.
In 2019, the average state and local tax burden was 10.3% of income, but this figure varied widely from state to state — ranging from less than 6% to over 14%, meaning differences of thousands of dollars in a given year.
To determine the states where Americans are paying the most taxes, 24/7 Wall St. reviewed data on state tax burdens from tax policy nonprofit the Tax Foundation. States were ranked based on state and local taxes paid by each state’s residents as a percentage of that state’s net national product in 2019. State income figures are based on net national product, which measures the value of goods and services produced by U.S. residents, minus the value of the fixed capital used in production.
States with higher incomes tend to also have higher tax burdens. The typical U.S. income, as determined by the net national product per capita, was $55,874 in 2019. Each of the five states with incomes exceeding $65,000 had tax burdens that were higher than the national burden of 10.3%. Of the 21 states with incomes below $50,000, just one had a tax burden that exceeded 10.3%.
To calculate tax burdens the Tax Foundation included different kinds of taxes, — on purchases like property, public utilities, alcohol, fuel, and general sales, as well as taxes on incomes, inheritance, and many other financial transactions. Property taxes can sometimes make up a large share of total tax burdens, depending on the state in which the property is located. While some states have property taxes of under $1,000 per capita, residents of other states pay over $3,000 per person in property taxes. These are the states with the highest property taxes.
Click here to see the states where Americans are paying the most taxes.
Click here to see our methodology.
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