Highest Taxed States

In the realm of taxes, understanding how each state imposes its burdens is crucial information for residents and potential movers alike. Varied across income, property, and sales taxes, the structure and rates significantly impact the life quality and financial planning of individuals and businesses.

• New York tops the list with the highest effective state tax rate of 15.9%, followed closely by Connecticut at 15.4%. Indicating that residents in these two states, on average, pay a higher percentage of their income in state taxes than any other U.S. region.
• The Northeastern U.S seems to have a high overall tax burden, with five states - New York, Connecticut, Vermont, New Jersey, and Maine - listed in the top ten.
• Conversely, Southern states appear to have lower tax rates overall. Most notably, Tennessee and Wyoming have effective state tax rates under 8%, while Alaska, the lowest-taxed state, has an effective state tax rate of just 4.6%.
• Interestingly, seven out of eight states (Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming) with no state income taxes appear in the lower half of the list, affirming that they leverage other avenues such as sales and property taxes to collect revenue.