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Hawaii |
| Overall Rank |
2nd |
| Total Tax Burden |
11.48% |
| Property Tax Burden |
2.34% |
38th |
| Individual Income Tax Burden |
2.78% |
10th |
| Total Sales & Excise Tax Burden |
6.36% |
1st |
2020’s Tax Burden by State
From Wallet Hub, June, 2020
This year, Uncle Sam will take his cut of the past year’s earnings a bit later than usual, on July 15. This three-month delay gave Americans some extra time to get their financial situation in order following the economic devastation caused by the COVID-19 pandemic. However, many taxpayers are undoubtedly still wondering how this year’s Tax Day will affect their finances. Since the tax code is so complicated and has rules based on individual household characteristics, it’s hard for the average person to tell.
One simple ratio known as the “tax burden” helps cut through the confusion. Unlike tax rates, which vary widely based on an individual’s circumstances, tax burden measures the proportion of total personal income that residents pay toward state and local taxes. And it isn’t uniform across the U.S., either.
To determine the residents with the biggest tax burdens, 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. …
For more fun (or not so fun) facts about 2020’s tax landscape, check out WalletHub’s Tax Day Facts infographic….
read … Full Report
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