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Highest Taxed States

Highest Taxed States
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Introduction

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.

10 Highest Taxed States

Topping this list, is New York with an effective tax rate of 15.9%. A close second, Connecticut impresses with an effective state tax rate of 15.4%. Following suit, we have Hawaii third on the list with an effective state tax rate of 14.1%. Along with its high state income tax rate, Hawaii’s general excise tax plays a significant role in its overall tax burden.

Vermont and California take the subsequent places with Vermont reporting an effective state tax rate of 13.6%, and California just behind at 13.5%. 

Moving down the list, we find New Jersey with an effective state tax rate of 13.2%, and Illinois with a rate of 12.9%. Virginia, Delaware, and Maine are close competitors, with effective tax rates of 12.5%, 12.4%, and 12.4%, respectively.

10 Highest Taxed States:

  1. New York - 15.9%
  2. Connecticut - 15.4%
  3. Hawaii - 14.1%
  4. Vermont - 13.6%
  5. California - 13.5%
  6. New Jersey - 13.2%
  7. Illinois - 12.9%
  8. Virginia - 12.5%
  9. Delaware - 12.4%
  10. Maine - 12.4%

Full Data Set

Frequently Asked Questions

Methodology