Least Taxed States

Average Taxes
Average Taxes
1.WyomingWyoming$3,438
2.NevadaNevada$4,065
3.TennesseeTennessee$4,769
4.AlaskaAlaska$4,847
5.FloridaFlorida$4,882
6.WashingtonWashington$5,723
7.North DakotaNorth Dakota$5,885
8.ArizonaArizona$5,965
9.South DakotaSouth Dakota$6,321
10.ColoradoColorado$6,469
11.DelawareDelaware$6,542
12.LouisianaLouisiana$6,588
13.CaliforniaCalifornia$6,998
14.MontanaMontana$7,151
15.IdahoIdaho$7,162
16.New MexicoNew Mexico$7,215
17.AlabamaAlabama$7,248
18.HawaiiHawaii$7,432
19.South CarolinaSouth Carolina$7,541
20.IndianaIndiana$7,679
21.North CarolinaNorth Carolina$7,779
22.MissouriMissouri$8,124
23.UtahUtah$8,199
24.MississippiMississippi$8,437
25.West VirginiaWest Virginia$8,447
26.OklahomaOklahoma$8,547
27.TexasTexas$8,554
28.VirginiaVirginia$8,594
29.KentuckyKentucky$8,641
30.ArkansasArkansas$8,767
31.MarylandMaryland$9,286
32.MinnesotaMinnesota$9,446
33.OhioOhio$9,479
34.GeorgiaGeorgia$9,517
35.OregonOregon$9,807
36.MaineMaine$10,026
37.PennsylvaniaPennsylvania$10,198
38.Rhode IslandRhode Island$10,240
39.MassachusettsMassachusetts$10,360
40.KansasKansas$10,816
41.MichiganMichigan$10,920
42.NebraskaNebraska$11,085
43.WisconsinWisconsin$11,198
44.VermontVermont$11,206
45.IowaIowa$12,084
46.New YorkNew York$12,298
47.New HampshireNew Hampshire$12,539
48.New JerseyNew Jersey$12,907
49.ConnecticutConnecticut$13,391
50.IllinoisIllinois$14,778

Introduction

Taxes are an undeniable part of living in the United States, a facet of fiscal life that bolsters infrastructure, education, healthcare, and a multitude of other pivotal public services. However, the implication of tax rates remains an essential consideration affecting Americans' financial landscape and their choice of residence within the nation. Some states have crafted their tax policies to lighten this burden, offering significantly lower average tax rates compared to others, creating distinctive tiers of taxation across the 50 states.

  • Wyoming tops the list as the least taxed state, with the average tax coming in at $3,438, significantly lower than the national mean.
  • High tax burdens are predominantly clustered on the Eastern side of the continent, with states like Illinois, Connecticut, New Jersey, New Hampshire, and New York, comprising the top-five most taxed states, all hitting average tax figures exceeding $12,000.
  • Western and Southern states, such as Nevada, Tennessee, Alaska, and Florida, appear in the lower spectrum of average taxes, suggesting a generally more favorable tax environment in these regions.
  • Despite its reputation for high living costs, California secures a mid-tier position at the 13th place, with an average tax of $6,998.
  • Interestingly, North Dakota and South Dakota, despite their geographical proximity, have a stark divergence in their tax figures, with the former maintaining a notably lower average tax bill.

10 Least Taxed States

In the ranking for the least taxed states, Wyoming sits unequivocally at the top. Known for a comprehensive tax-friendly environment, the average tax comes in at a diminutive $3,438 per annum. This figure is lightweight compared to the national average, marking Wyoming as a financial haven for those seeking to minimize their tax obligations. Neighboring state Nevada lands second on the list, with an average tax of $4,065. Renowned for having no state income tax, it provides residents with substantial savings that they often reinvest into their businesses or households. Moving to the Eastern side of the United States, we find Tennessee in the third position with an average tax of $4,769. Like Nevada, Tennessee doesn't levy an income tax on salaries and wages which simplifies residents' tax filing and can result in considerable savings. In the fourth and fifth spots, we have Alaska and Florida which bear average taxes of $4,847 and $4,882 respectively. These states, despite their geographical distance, share common ground in providing their citizens with lower than average tax rates, making them appealing to those looking to stretch their dollars further. The Pacific Northwest state of Washington, which also doesn't have a state income tax, holds the sixth position with an average tax of $5,723. While North Dakota and Arizona, both states with wide-ranging landscapes, offer residents relatively lower taxation, reporting average annual taxes of $5,885 and $5,965 respectively. Rounding off the list are South Dakota and Colorado. South Dakota's average tax of $6,321 shows it closely follows its northern neighbor, while Colorado, a state known for its high-quality roads and infrastructure, requires residents to contribute an average tax of $6,469 annually. Here are the top 10 least taxed states:

  1. Wyoming - $3,438
  2. Nevada - $4,065
  3. Tennessee - $4,769
  4. Alaska - $4,847
  5. Florida - $4,882
  6. Washington - $5,723
  7. North Dakota - $5,885
  8. Arizona - $5,965
  9. South Dakota - $6,321
  10. Colorado - $6,469

By Region

Alabama

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Alabama

Metric

Value

Rank

Average Taxes

$7,248

#17

Alaska

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Alaska

Metric

Value

Rank

Average Taxes

$4,847

#4

Arizona

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Arizona

Metric

Value

Rank

Average Taxes

$5,965

#8

Arkansas

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Arkansas

Metric

Value

Rank

Average Taxes

$8,767

#30

California

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California

Metric

Value

Rank

Average Taxes

$6,998

#13

Colorado

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Colorado

Metric

Value

Rank

Average Taxes

$6,469

#10

Connecticut

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Connecticut

Metric

Value

Rank

Average Taxes

$13,391

#49

Delaware

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Delaware

Metric

Value

Rank

Average Taxes

$6,542

#11

Florida

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Florida

Metric

Value

Rank

Average Taxes

$4,882

#5

Georgia

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Georgia

Metric

Value

Rank

Average Taxes

$9,517

#34

Hawaii

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Hawaii

Metric

Value

Rank

Average Taxes

$7,432

#18

Idaho

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Idaho

Metric

Value

Rank

Average Taxes

$7,162

#15

Illinois

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Illinois

Metric

Value

Rank

Average Taxes

$14,778

#50

Indiana

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Indiana

Metric

Value

Rank

Average Taxes

$7,679

#20

Iowa

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Iowa

Metric

Value

Rank

Average Taxes

$12,084

#45

Kansas

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Kansas

Metric

Value

Rank

Average Taxes

$10,816

#40

Kentucky

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Kentucky

Metric

Value

Rank

Average Taxes

$8,641

#29

Louisiana

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Louisiana

Metric

Value

Rank

Average Taxes

$6,588

#12

Maine

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Maine

Metric

Value

Rank

Average Taxes

$10,026

#36

Maryland

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Maryland

Metric

Value

Rank

Average Taxes

$9,286

#31

Massachusetts

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Massachusetts

Metric

Value

Rank

Average Taxes

$10,360

#39

Michigan

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Michigan

Metric

Value

Rank

Average Taxes

$10,920

#41

Minnesota

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Minnesota

Metric

Value

Rank

Average Taxes

$9,446

#32

Mississippi

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Mississippi

Metric

Value

Rank

Average Taxes

$8,437

#24

Missouri

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Missouri

Metric

Value

Rank

Average Taxes

$8,124

#22

Montana

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Montana

Metric

Value

Rank

Average Taxes

$7,151

#14

Nebraska

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Nebraska

Metric

Value

Rank

Average Taxes

$11,085

#42

Nevada

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Nevada

Metric

Value

Rank

Average Taxes

$4,065

#2

New Hampshire

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New Hampshire

Metric

Value

Rank

Average Taxes

$12,539

#47

New Jersey

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New Jersey

Metric

Value

Rank

Average Taxes

$12,907

#48

New Mexico

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New Mexico

Metric

Value

Rank

Average Taxes

$7,215

#16

New York

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New York

Metric

Value

Rank

Average Taxes

$12,298

#46

North Carolina

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North Carolina

Metric

Value

Rank

Average Taxes

$7,779

#21

North Dakota

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North Dakota

Metric

Value

Rank

Average Taxes

$5,885

#7

Ohio

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Ohio

Metric

Value

Rank

Average Taxes

$9,479

#33

Oklahoma

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Oklahoma

Metric

Value

Rank

Average Taxes

$8,547

#26

Oregon

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Oregon

Metric

Value

Rank

Average Taxes

$9,807

#35

Pennsylvania

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Pennsylvania

Metric

Value

Rank

Average Taxes

$10,198

#37

Rhode Island

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Rhode Island

Metric

Value

Rank

Average Taxes

$10,240

#38

South Carolina

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South Carolina

Metric

Value

Rank

Average Taxes

$7,541

#19

South Dakota

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South Dakota

Metric

Value

Rank

Average Taxes

$6,321

#9

Tennessee

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Tennessee

Metric

Value

Rank

Average Taxes

$4,769

#3

Texas

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Texas

Metric

Value

Rank

Average Taxes

$8,554

#27

Utah

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Utah

Metric

Value

Rank

Average Taxes

$8,199

#23

Vermont

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Vermont

Metric

Value

Rank

Average Taxes

$11,206

#44

Virginia

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Virginia

Metric

Value

Rank

Average Taxes

$8,594

#28

Washington

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Washington

Metric

Value

Rank

Average Taxes

$5,723

#6

West Virginia

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West Virginia

Metric

Value

Rank

Average Taxes

$8,447

#25

Wisconsin

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Wisconsin

Metric

Value

Rank

Average Taxes

$11,198

#43

Wyoming

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Wyoming

Metric

Value

Rank

Average Taxes

$3,438

#1

Table

Region ↕Average Taxes ↕
Alabama iconAlabama$7,248
Alaska iconAlaska$4,847
Arizona iconArizona$5,965
Arkansas iconArkansas$8,767
California iconCalifornia$6,998
Colorado iconColorado$6,469
Connecticut iconConnecticut$13,391
Delaware iconDelaware$6,542
Florida iconFlorida$4,882
Georgia iconGeorgia$9,517
Hawaii iconHawaii$7,432
Idaho iconIdaho$7,162
Illinois iconIllinois$14,778
Indiana iconIndiana$7,679
Iowa iconIowa$12,084
Kansas iconKansas$10,816
Kentucky iconKentucky$8,641
Louisiana iconLouisiana$6,588
Maine iconMaine$10,026
Maryland iconMaryland$9,286
Massachusetts iconMassachusetts$10,360
Michigan iconMichigan$10,920
Minnesota iconMinnesota$9,446
Mississippi iconMississippi$8,437
Missouri iconMissouri$8,124
Montana iconMontana$7,151
Nebraska iconNebraska$11,085
Nevada iconNevada$4,065
New Hampshire iconNew Hampshire$12,539
New Jersey iconNew Jersey$12,907
New Mexico iconNew Mexico$7,215
New York iconNew York$12,298
North Carolina iconNorth Carolina$7,779
North Dakota iconNorth Dakota$5,885
Ohio iconOhio$9,479
Oklahoma iconOklahoma$8,547
Oregon iconOregon$9,807
Pennsylvania iconPennsylvania$10,198
Rhode Island iconRhode Island$10,240
South Carolina iconSouth Carolina$7,541
South Dakota iconSouth Dakota$6,321
Tennessee iconTennessee$4,769
Texas iconTexas$8,554
Utah iconUtah$8,199
Vermont iconVermont$11,206
Virginia iconVirginia$8,594
Washington iconWashington$5,723
West Virginia iconWest Virginia$8,447
Wisconsin iconWisconsin$11,198
Wyoming iconWyoming$3,438
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