Tax Burden by State

tax burden by state


Tax burden represents the proportion of Americans’ income paid in taxes. In the United States, where you live can heavily affect how much of your annual salary goes to state coffers. That’s why knowing and understanding the tax burden by state is essential if you want to plan where to set up your new business or move so that you can lower your tax burden and save more money for your future. These are the states with the heaviest tax burdens in the US.

What is a Tax Burden?

A tax burden represents how much of an income goes to taxes. For example, a taxpayer who earns $50,000 and pays $5,000 to his state and federal governments has a tax burden of 10 percent. Some states have higher tax burdens than others due to their government spending more per capita on public programs or because of high income taxes for wealthier residents. State and local governments have complete control over their revenue sources and can structure them however they want. As a result, there is no truly objective way to calculate a tax burden by state. It’s hard to argue which method is best because states all use different ways of calculating their respective burdens. 


Top 10 States With Lowest Tax Burden

  • Alaska 5.06 %
  • Tennessee 5.75 %
  • Delaware 6.22 %
  • Wyoming 6.32 %
  • New Hampshire 6.41 %
  • Florida 6.64 %
  • South Dakota 7.12 %
  • Montana 7.39 %
  • Alabama 7.41 %
  • Oklahoma 7.47 %

Top 10 States With Highest Tax Burden

  • New York 12.75 %
  • Hawaii 12.7 %
  • Maine 11.42 %
  • Vermont 11.13 %
  • Minnesota 10.2 %
  • New Jersey 10.11 %
  • Connecticut 10.06 %
  • Rhode Island 9.91 %
  • California 9.72 %
  • Illinois 9.7 %


These resources are for informational purposes only and should not be construed as legal advice. Landlords and Tenants are encouraged to seek specific legal advice for any of the issues as found in this blog.