Tax Burden by State

From WalletHub

Each April, Uncle Sam claims a portion of the previous year’s earnings. Because the tax code is so complex, it can be difficult for the average person to understand exactly how they’re affected.

One helpful measure that simplifies things is the “tax burden.” Unlike tax rates, which can differ significantly depending on an individual’s situation, tax burden looks at the share of total personal income that residents pay in state and local taxes. This burden isn’t the same across the United States.

To identify where residents face the highest tax burdens, WalletHub compared all 50 states by examining three major types of state tax burdens—property taxes, individual income taxes, and sales and excise taxes—and calculating their cost as a percentage of total personal income in each state.

Key Findings

• Hawaii has the highest overall tax burden, while Alaska has the lowest.
• Vermont has the highest property tax burden, while Alabama has the lowest.
• Oregon has the highest individual income tax burden, while seven states (including Texas, Florida and Nevada) have none.
• Hawaii has the highest sales and excise tax burden, while New Hampshire has the lowest.
• Red states have a lower tax burden than blue states, on average.

Read … Full Report

ASD: Pipikaula Corner: Congratulations, Hawai‘i, we're No. 1! In local taxes!