It’s tax season, and Uncle Sam is back to collect what’s due. Some Americans are hit harder by taxes than others, though. Many taxes — including property taxes, sales taxes, and some state and local taxes, are regressive. That means they take more money out of the pockets of Americans in the lower- and middle-income brackets than from wealthier families. Nationally, people in the least-wealthy fifth of the population pay around 11.4% of their income in state taxes, while the richest one-percenters pay 7.2%.
With less than a month until the tax deadline for most Americans, WalletHub identified the best states where people in different income brackets spend the most and least on sales and excise taxes, property taxes and income taxes. It’s important to note that our analysis does not focus on tax rates but rather on the share of a resident’s income that they contribute toward various tax obligations. For instance, tax rates may be lower in one state, but because of a comparatively higher cost of living, the actual tax burden may be higher for that state’s residents.
Cassandra Happe, WalletHub Analyst
Main Findings
Best & Worst States for Low Income Earners
Best & Worst States for High Income Earners
State |
“Low Income” Rank |
“Middle Income” Rank |
“High Income” Rank |
---|---|---|---|
Alabama | 34 (11.01%) | 35 (10.41%) | 13 (8.14%) |
Alaska | 1 (6.93%) | 1 (4.98%) | 1 (3.95%) |
Arizona | 29 (10.64%) | 22 (9.53%) | 12 (7.99%) |
Arkansas | 44 (11.59%) | 44 (11.08%) | 30 (9.49%) |
California | 31 (10.68%) | 29 (9.96%) | 44 (10.87%) |
Colorado | 16 (9.01%) | 18 (9.30%) | 22 (9.11%) |
Connecticut | 45 (11.61%) | 41 (10.85%) | 49 (12.01%) |
Delaware | 5 (7.67%) | 3 (7.41%) | 11 (7.64%) |
District of Columbia | 10 (8.12%) | 39 (10.71%) | 47 (11.82%) |
Florida | 33 (11.00%) | 15 (9.03%) | 5 (6.50%) |
Georgia | 22 (9.96%) | 17 (9.16%) | 23 (9.12%) |
Hawaii | 49 (13.74%) | 51 (13.62%) | 50 (12.08%) |
Idaho | 13 (8.68%) | 5 (7.79%) | 15 (8.45%) |
Illinois | 51 (13.95%) | 49 (12.57%) | 45 (10.93%) |
Indiana | 46 (11.78%) | 37 (10.55%) | 20 (8.85%) |
Iowa | 41 (11.44%) | 42 (10.86%) | 38 (10.28%) |
Kansas | 38 (11.25%) | 45 (11.49%) | 43 (10.81%) |
Kentucky | 35 (11.08%) | 34 (10.26%) | 34 (9.82%) |
Louisiana | 47 (12.63%) | 48 (12.05%) | 32 (9.66%) |
Maine | 14 (8.68%) | 25 (9.65%) | 40 (10.45%) |
Maryland | 25 (10.08%) | 33 (10.03%) | 46 (11.53%) |
Massachusetts | 17 (9.13%) | 16 (9.14%) | 29 (9.46%) |
Michigan | 9 (8.10%) | 19 (9.35%) | 18 (8.77%) |
Minnesota | 4 (7.35%) | 12 (8.47%) | 42 (10.57%) |
Mississippi | 39 (11.26%) | 43 (10.88%) | 27 (9.39%) |
Missouri | 7 (7.93%) | 6 (7.84%) | 16 (8.66%) |
Montana | 2 (7.28%) | 8 (8.13%) | 9 (7.37%) |
Nebraska | 32 (10.88%) | 36 (10.47%) | 36 (10.09%) |
Nevada | 26 (10.27%) | 11 (8.47%) | 7 (6.70%) |
New Hampshire | 8 (8.06%) | 2 (7.04%) | 2 (5.72%) |
New Jersey | 18 (9.37%) | 26 (9.85%) | 48 (11.97%) |
New Mexico | 6 (7.70%) | 38 (10.60%) | 37 (10.12%) |
New York | 43 (11.50%) | 50 (12.58%) | 51 (13.36%) |
North Carolina | 20 (9.67%) | 14 (8.80%) | 14 (8.44%) |
North Dakota | 11 (8.64%) | 7 (7.92%) | 3 (6.12%) |
Ohio | 37 (11.22%) | 31 (9.98%) | 25 (9.30%) |
Oklahoma | 30 (10.64%) | 24 (9.62%) | 19 (8.82%) |
Oregon | 27 (10.39%) | 40 (10.74%) | 41 (10.50%) |
Pennsylvania | 48 (13.17%) | 46 (11.81%) | 31 (9.61%) |
Rhode Island | 36 (11.21%) | 20 (9.37%) | 26 (9.34%) |
South Carolina | 12 (8.67%) | 10 (8.47%) | 28 (9.40%) |
South Dakota | 23 (9.98%) | 9 (8.41%) | 6 (6.55%) |
Tennessee | 40 (11.32%) | 27 (9.88%) | 8 (7.12%) |
Texas | 42 (11.50%) | 30 (9.97%) | 10 (7.51%) |
Utah | 24 (10.01%) | 32 (10.03%) | 35 (9.83%) |
Vermont | 3 (7.30%) | 13 (8.62%) | 39 (10.36%) |
Virginia | 15 (8.73%) | 23 (9.61%) | 33 (9.75%) |
Washington | 50 (13.91%) | 47 (11.96%) | 21 (8.98%) |
West Virginia | 21 (9.90%) | 21 (9.45%) | 17 (8.67%) |
Wisconsin | 28 (10.62%) | 28 (9.92%) | 24 (9.23%) |
Wyoming | 19 (9.43%) | 4 (7.69%) | 4 (6.22%) |
- Best
- 1. Alaska
- 2. New Hampshire
- 3. North Dakota
- 4. Wyoming
- 5. Florida
- Worst
- 47. District of Columbia
- 48. New Jersey
- 49. Connecticut
- 50. Hawaii
- 51. New York
- Best
- 1. Alaska
- 2. New Hampshire
- 3. Delaware
- 4. Wyoming
- 5. Idaho
- Worst
- 47. Washington
- 48. Louisiana
- 49. Illinois
- 50. New York
- 51. Hawaii
- Best
- 1. Alaska
- 2. Montana
- 3. Vermont
- 4. Minnesota
- 5. Delaware
- Worst
- 47. Louisiana
- 48. Pennsylvania
- 49. Hawaii
- 50. Washington
- 51. Illinois
- Lowest
- 1. District of Columbia
- 2. Minnesota
- 3. Vermont
- 4. New Jersey
- 5. New Mexico
- Highest
- 47. Nevada
- 48. Texas
- 49. Tennessee
- 50. Florida
- 51. Washington
- Lowest
- 1. Montana
- 2. New Hampshire
- 3. Delaware
- 4. Massachusetts
- 5. Virginia
- Highest
- 47. Arkansas
- 48. Tennessee
- 49. Hawaii
- 50. Louisiana
- 51. Washington
- Lowest
- 1. Vermont
- 2. Minnesota
- 3. New Jersey
- 4. Michigan
- 5. Virginia
- Highest
- 47. Nebraska
- 48. Wisconsin
- 49. Iowa
- 50. Florida
- 51. Connecticut
Detailed Findings
State | Income Level | Sales & Excise Tax as % of Income | Property Tax as % of Income | Income Tax as % of Income | Total Tax as % of Income |
---|---|---|---|---|---|
Alabama | Low | 6.58% | 1.83% | 2.60% | 11.01% |
Middle | 5.54% | 1.49% | 3.38% | 10.41% | |
High | 3.44% | 1.33% | 3.36% | 8.14% | |
Alaska | Low | 3.80% | 3.14% | 0.00% | 6.93% |
Middle | 2.41% | 2.58% | 0.00% | 4.98% | |
High | 1.18% | 2.77% | 0.00% | 3.95% | |
Arizona | Low | 7.18% | 2.82% | 0.64% | 10.64% |
Middle | 6.36% | 2.17% | 1.00% | 9.53% | |
High | 4.08% | 2.15% | 1.76% | 7.99% | |
Arkansas | Low | 8.46% | 2.27% | 0.86% | 11.59% |
Middle | 7.15% | 2.02% | 1.91% | 11.08% | |
High | 4.66% | 1.56% | 3.27% | 9.49% | |
California | Low | 6.98% | 4.38% | -0.68% | 10.68% |
Middle | 5.82% | 3.22% | 0.92% | 9.96% | |
High | 3.76% | 3.15% | 3.96% | 10.87% | |
Colorado | Low | 5.75% | 3.52% | -0.26% | 9.01% |
Middle | 4.55% | 3.16% | 1.58% | 9.30% | |
High | 2.99% | 2.79% | 3.33% | 9.11% | |
Connecticut | Low | 6.57% | 6.08% | -1.04% | 11.61% |
Middle | 5.02% | 4.43% | 1.40% | 10.85% | |
High | 3.32% | 4.17% | 4.53% | 12.01% | |
Delaware | Low | 2.84% | 2.94% | 1.89% | 7.67% |
Middle | 1.88% | 2.27% | 3.25% | 7.41% | |
High | 1.28% | 1.87% | 4.48% | 7.64% | |
District of Columbia | Low | 5.21% | 4.01% | -1.10% | 8.12% |
Middle | 4.59% | 3.88% | 2.24% | 10.71% | |
High | 2.81% | 3.78% | 5.24% | 11.82% | |
Florida | Low | 6.69% | 4.31% | 0.00% | 11.00% |
Middle | 5.65% | 3.39% | 0.00% | 9.03% | |
High | 3.77% | 2.73% | 0.00% | 6.50% | |
Georgia | Low | 5.57% | 2.79% | 1.59% | 9.96% |
Middle | 4.77% | 2.00% | 2.39% | 9.16% | |
High | 3.02% | 2.22% | 3.87% | 9.12% | |
Hawaii | Low | 8.59% | 3.29% | 1.86% | 13.74% |
Middle | 7.55% | 2.36% | 3.71% | 13.62% | |
High | 4.27% | 2.48% | 5.33% | 12.08% | |
Idaho | Low | 4.87% | 2.87% | 0.94% | 8.68% |
Middle | 3.69% | 2.13% | 1.97% | 7.79% | |
High | 2.67% | 1.84% | 3.95% | 8.45% | |
Illinois | Low | 6.86% | 4.55% | 2.55% | 13.95% |
Middle | 5.19% | 3.94% | 3.43% | 12.57% | |
High | 3.12% | 3.83% | 3.99% | 10.93% | |
Indiana | Low | 6.13% | 2.91% | 2.74% | 11.78% |
Middle | 5.04% | 2.39% | 3.12% | 10.55% | |
High | 3.15% | 1.92% | 3.79% | 8.85% | |
Iowa | Low | 6.14% | 5.00% | 0.30% | 11.44% |
Middle | 5.21% | 3.56% | 2.09% | 10.86% | |
High | 3.34% | 3.43% | 3.50% | 10.28% | |
Kansas | Low | 6.36% | 3.68% | 1.22% | 11.25% |
Middle | 5.35% | 3.44% | 2.70% | 11.49% | |
High | 3.56% | 3.21% | 4.05% | 10.81% | |
Kentucky | Low | 5.89% | 2.68% | 2.51% | 11.08% |
Middle | 4.80% | 2.05% | 3.41% | 10.26% | |
High | 3.10% | 2.08% | 4.65% | 9.82% | |
Louisiana | Low | 9.32% | 2.08% | 1.23% | 12.63% |
Middle | 8.01% | 1.76% | 2.27% | 12.05% | |
High | 4.93% | 1.56% | 3.17% | 9.66% | |
Maine | Low | 5.17% | 4.24% | -0.73% | 8.68% |
Middle | 4.21% | 3.89% | 1.56% | 9.65% | |
High | 2.63% | 3.81% | 4.01% | 10.45% | |
Maryland | Low | 5.58% | 3.17% | 1.33% | 10.08% |
Middle | 4.24% | 2.37% | 3.42% | 10.03% | |
High | 2.76% | 2.72% | 6.05% | 11.53% | |
Massachusetts | Low | 4.02% | 3.89% | 1.21% | 9.13% |
Middle | 3.06% | 2.98% | 3.09% | 9.14% | |
High | 1.98% | 3.40% | 4.08% | 9.46% | |
Michigan | Low | 5.54% | 2.08% | 0.48% | 8.10% |
Middle | 4.46% | 2.62% | 2.27% | 9.35% | |
High | 2.73% | 2.80% | 3.25% | 8.77% | |
Minnesota | Low | 5.67% | 2.00% | -0.33% | 7.35% |
Middle | 4.51% | 2.29% | 1.68% | 8.47% | |
High | 2.92% | 2.93% | 4.71% | 10.57% | |
Mississippi | Low | 7.51% | 3.03% | 0.72% | 11.26% |
Middle | 6.42% | 2.70% | 1.76% | 10.88% | |
High | 3.91% | 2.31% | 3.17% | 9.39% | |
Missouri | Low | 4.88% | 2.77% | 0.29% | 7.93% |
Middle | 4.14% | 2.26% | 1.43% | 7.84% | |
High | 2.67% | 2.40% | 3.59% | 8.66% | |
Montana | Low | 2.28% | 3.68% | 1.32% | 7.28% |
Middle | 1.43% | 3.59% | 3.11% | 8.13% | |
High | 1.25% | 2.33% | 3.78% | 7.37% | |
Nebraska | Low | 5.36% | 4.70% | 0.82% | 10.88% |
Middle | 4.86% | 3.84% | 1.77% | 10.47% | |
High | 3.23% | 3.25% | 3.61% | 10.09% | |
Nevada | Low | 6.81% | 2.88% | 0.58% | 10.27% |
Middle | 5.50% | 2.38% | 0.59% | 8.47% | |
High | 3.85% | 2.35% | 0.51% | 6.70% | |
New Hampshire | Low | 2.28% | 5.35% | 0.43% | 8.06% |
Middle | 1.58% | 5.05% | 0.41% | 7.04% | |
High | 0.82% | 4.50% | 0.39% | 5.72% | |
New Jersey | Low | 5.34% | 4.24% | -0.21% | 9.37% |
Middle | 4.30% | 4.44% | 1.11% | 9.85% | |
High | 2.88% | 5.01% | 4.08% | 11.97% | |
New Mexico | Low | 8.06% | 2.67% | -3.03% | 7.70% |
Middle | 6.94% | 2.35% | 1.31% | 10.60% | |
High | 5.01% | 1.58% | 3.53% | 10.12% | |
New York | Low | 5.59% | 5.30% | 0.62% | 11.50% |
Middle | 4.79% | 3.99% | 3.80% | 12.58% | |
High | 3.17% | 4.63% | 5.56% | 13.36% | |
North Carolina | Low | 5.93% | 2.55% | 1.19% | 9.67% |
Middle | 5.02% | 1.88% | 1.89% | 8.80% | |
High | 3.29% | 1.95% | 3.21% | 8.44% | |
North Dakota | Low | 6.18% | 2.46% | 0.01% | 8.64% |
Middle | 5.20% | 2.60% | 0.12% | 7.92% | |
High | 3.50% | 2.06% | 0.57% | 6.12% | |
Ohio | Low | 6.19% | 3.01% | 2.02% | 11.22% |
Middle | 4.95% | 2.46% | 2.58% | 9.98% | |
High | 3.00% | 2.64% | 3.66% | 9.30% | |
Oklahoma | Low | 7.06% | 2.50% | 1.08% | 10.64% |
Middle | 5.59% | 2.08% | 1.95% | 9.62% | |
High | 3.47% | 1.85% | 3.50% | 8.82% | |
Oregon | Low | 3.40% | 3.63% | 3.36% | 10.39% |
Middle | 2.02% | 3.38% | 5.34% | 10.74% | |
High | 0.88% | 3.00% | 6.62% | 10.50% | |
Pennsylvania | Low | 5.82% | 4.00% | 3.34% | 13.17% |
Middle | 4.65% | 3.05% | 4.11% | 11.81% | |
High | 2.84% | 2.69% | 4.08% | 9.61% | |
Rhode Island | Low | 6.13% | 4.92% | 0.17% | 11.21% |
Middle | 4.79% | 3.13% | 1.45% | 9.37% | |
High | 2.69% | 3.74% | 2.91% | 9.34% | |
South Carolina | Low | 5.06% | 3.16% | 0.44% | 8.67% |
Middle | 4.36% | 2.63% | 1.48% | 8.47% | |
High | 2.89% | 2.56% | 3.95% | 9.40% | |
South Dakota | Low | 6.71% | 3.27% | 0.00% | 9.98% |
Middle | 5.60% | 2.81% | 0.00% | 8.41% | |
High | 4.11% | 2.44% | 0.00% | 6.55% | |
Tennessee | Low | 8.90% | 2.21% | 0.21% | 11.32% |
Middle | 7.78% | 1.88% | 0.22% | 9.88% | |
High | 5.09% | 1.80% | 0.22% | 7.12% | |
Texas | Low | 7.51% | 3.98% | 0.00% | 11.50% |
Middle | 6.48% | 3.49% | 0.00% | 9.97% | |
High | 4.29% | 3.21% | 0.00% | 7.51% | |
Utah | Low | 6.06% | 2.57% | 1.38% | 10.01% |
Middle | 5.39% | 2.31% | 2.33% | 10.03% | |
High | 3.64% | 2.25% | 3.94% | 9.83% | |
Vermont | Low | 4.99% | 2.89% | -0.58% | 7.30% |
Middle | 3.50% | 3.73% | 1.39% | 8.62% | |
High | 2.24% | 4.29% | 3.82% | 10.36% | |
Virginia | Low | 4.56% | 2.94% | 1.22% | 8.73% |
Middle | 3.91% | 2.95% | 2.75% | 9.61% | |
High | 2.51% | 2.94% | 4.30% | 9.75% | |
Washington | Low | 10.33% | 3.58% | 0.00% | 13.91% |
Middle | 8.72% | 3.24% | 0.00% | 11.96% | |
High | 5.90% | 3.08% | 0.00% | 8.98% | |
West Virginia | Low | 6.24% | 2.10% | 1.56% | 9.90% |
Middle | 5.07% | 1.71% | 2.68% | 9.45% | |
High | 3.14% | 1.54% | 3.99% | 8.67% | |
Wisconsin | Low | 5.45% | 4.35% | 0.82% | 10.62% |
Middle | 4.06% | 3.70% | 2.16% | 9.92% | |
High | 2.63% | 2.84% | 3.76% | 9.23% | |
Wyoming | Low | 5.57% | 3.85% | 0.00% | 9.43% |
Middle | 4.60% | 3.09% | 0.00% | 7.69% | |
High | 3.01% | 3.20% | 0.00% | 6.22% |
Note: The small difference that might exist in some cases when adding up the sub-components is the consequence of rounding to two decimal points the results.
Ask the Experts
Fairness is a central issue of the current tax season. For additional insight on the most pressing tax problems, possible solutions and other tax-related matters, we asked a panel of experts to weigh in. Click on the experts’ profiles to read their bios and responses to the following key questions:
- What is the most efficient way to distribute tax burden across income levels?
- Which state and local tax instruments are the most and least fair?
- What makes some state and local tax systems better able to weather economic downturns?
- How do American notions of economic mobility inform tax preferences and tax policy?
Ask the Experts
Methodology
In order to identify the best states to be taxed according to one’s income group, WalletHub generated estimates of the state-specific tax burden on residents at three income levels — low ($25,000), medium ($50,000) and high ($150,000) — in each of the 50 U.S. states and the District of Columbia. We did so using data from the Institute on Taxation & Economic Policy's 2024 report, which published estimates of tax burden at seven points in the state-specific income distribution.
As we were interested in comparing tax burdens for households at the same income level across states, we fit a regression model to estimate the relationship between income and tax burden for each state and the District of Columbia using log transformations to improve model fit and using this model to generate predicted tax burdens at the income levels we examined.
WalletHub experts are widely quoted. Contact our media team to schedule an interview.