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New York has the highest tax burden out of all 50 states, study reveals: Full list

By Stephanie Weaver
Updated  April 15, 2024 2:30pm EDT
Economy
FOX 5 NY

Wallethub: NY has the highest state & local tax rates

Wallethub says New York has some of the highest state and local tax rates.

NEW YORK - The cost of living in New York is notoriously high, and this burden is especially apparent in the Empire State on Tax Day.

Unlike tax rates, which vary widely based on an individual’s circumstances, a "tax burden" measures the proportion of total personal income that residents pay toward state and local taxes. 

It isn’t uniform across the U.S. either.; what you owe can vary significantly based on the state that you live in.

FILE-A U.S. Department of the Treasury Internal Revenue Service (IRS) 1040 Individual Income Tax form is next to a W-2 form. (Daniel Acker/Bloomberg via Getty Images)

To determine the residents with the biggest tax burdens, WalletHub, a personal finance website, compared the 50 states based on the cost of three types of taxes — property taxes, individual income taxes, and sales and excise taxes — as a share of total personal income in the state.

Here’s a look at the states with the highest and lowest tax burdens, and which taxpayers pay the least and most.

States with highest taxes, lowest tax burdens

Highest tax burdens

  1. New York - 12.02%
  2. Hawaii - 11.80%
  3. Vermont - 11.12%
  4. Maine - 10.74%
  5. California - 10.40%
  6. Connecticut - 10.08%
  7. Minnesota - 9.95%
  8. Illinois - 9.67%
  9. New Jersey - 9.47%
  10. Rhode Island - 9.38%

Lowest tax burdens

  1. Alaska - 4.93%
  2. New Hampshire - 5.63%
  3. Wyoming - 5.70%
  4. Florida - 6.05%
  5. Tennessee - 6.07%
  6. Delaware - 6.43%
  7. South Dakota - 6.44%
  8. North Dakota - 6.80%
  9. Oklahoma - 7.04%
  10. Nevada - 7.37%

States with no personal income tax

Some states have decided to do away with personal income tax altogether, giving residents the advantage of keeping more of their earned income.

These include:

  1. Alaska
  2. Florida
  3. Nevada
  4. South Dakota
  5. Texas
  6. Washington
  7. Wyoming

Keep in mind, the findings reveal that low income taxes don’t always mean low taxes as a whole. 

For example, while the state of Washington’s citizens don’t pay income tax, they still end up spending over 8% of their annual income on sales and excise taxes. 

Meanwhile, Texas residents also don’t pay income tax, but they spend 1.63% of their income on real estate taxes – one of the highest rates in the country.

People who live alone in NYC face huge 'single tax'

You're spending nearly $20,000 more a year to rent an apartment in New York City than someone splitting the rent with a roommate or significant other.

WalletHub found that New York had the highest overall tax burden, while Alaska had the lowest. 

Meanwhile, Maine has the highest property tax burden, while Alabama has the lowest. California has the highest individual income tax burden.

Red states had a lower tax burden than blue states, on average.

What time do taxes need to be filed by

Tax day is April 15 and marks the last day to submit a request for an income tax extension, giving filers six more months to file their tax return.

Tax returns are due by 11:59 p.m., in your time zone, with some exceptions.

How much does it cost to live the American Dream?

Lynette Khalfani Cox, CEO of the Money Coach shares how the high cost of living is impacting families in the US.

Taxpayers in Massachusetts and Maine have until April 17 to file and pay taxes because of the Patriots' Day and Emancipation Day holidays. 

In addition, there may be extensions in some areas impacted by severe weather events. There are extensions for certain active-duty military members and citizens living abroad. 

Alex Meier contributed to this report.