Personal Finance News
WalletHub Study Ranks U.S. States by Average Citizen Tax Burden
Just in time for the 2026 tax filing due date, a new study highlights the total tax burden that residents of different states face.
About the Tax Burden by State Results:
The personal finance site WalletHub has released its list of states with the highest and lowest tax burdens. To arrive at these figures, the site considered three types of tax: property tax, individual income tax, and total sales/excise tax. Then, these were assessed as a share of personal income across all 50 states. For example, a state with a 10% tax burden means that the average resident pays 10% of their income to state and local governments.
With that in mind, topping the list as the most tax-burdened state is Hawaii (which happens to be the 50th state). Those in the Aloha State have a total tax burden of 13.30%. While Hawaii was in the middle of the pack for property taxes, its 7.48% Total Sales & Excise Tax Burden also ranked first.
Following Hawaii in taxation burden was New York with a total of 12.39%. That position was influenced by the Empire State’s fourth-place finish in property tax burden (4.22%) and second-place individual income tax (4.65%). Rounding out the top five were Vermont (11.10%), New Mexico (10.75%), and Maine (10.01%). Vermont also ranked first in terms of property tax burden at 4.89% while Oregon — which placed ninth overall — was tops in terms of individual income tax burden.
On the opposite end of the list, Alaska residents were found to be the least tax burdened. The appropriately named Last Frontier’s 4.92% total was driven by the state’s 0.00% individual income tax (tying with six other states) as well as its 1.60% total sales/excise tax burden — good for 47th place.
Meanwhile, New Hampshire was just behind Alaska with a total of 5.38%. Although the Granite State was actually third for property tax burden (4.33%), it placed 50th for total sales and excise tax at 0.91%. Also at the bottom were Tennessee (6.21%), Florida (6.27%), and Delaware (6.28%). Finally, the state with the lowest-ranked property tax burden was Alabama at 1.40%, but the state placed 33rd overall.
What They’re Saying:
Commenting on this study, WallerHub Analyst Chip Lupo explained, “It’s easy to be dismayed at tax time when you see just how much of your income you lose. Living in a state with a low tax burden can alleviate some of that stress. Some states charge no income tax or no sales tax, although all states have some form of property taxes and excise taxes.”
My Thoughts:
State and local taxes aren’t always something people think about when heading to a new state, but it turns out that they can make quite a difference. And while some states may be famous for not having income tax or sales tax, it’s important to remember that there are other types of taxes that may well make up for that. Just something to keep in mind if you are looking to lower your tax burden with a move.
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