"Every year during tax season, Americans are reminded of just how much of their hard-earned income isn't theirs to keep." That's the take offered by Chip Lupo, an analyst for WalletHub, which decided to see which US states claim the lowest (and highest) tax rates as we all get ready to wrangle with Uncle Sam. WalletHub looked at all 50 states, as well as DC, using data from the US Census Bureau, Bureau of Labor Statistics, and other agencies to compare them all across four types of taxation—income, real estate, vehicle property, and sales and excise taxes. Read on for the 10 states with the lowest and highest tax rates, with the effective total state and local tax rates in each:
Lowest tax rates
- Alaska; 6.8%
- Delaware; 7.2%
- Wyoming; 7.5%
- Idaho; 7.8%
- Montana; 7.8%
- Nevada; 8.6%
- Colorado; 8.7%
- Florida; 8.7%
- South Carolina; 9.1%
- District of Columbia; 9.1%
Highest tax rates
- Texas; 12.5%
- Ohio; 12.8%
- Iowa; 13.1%
- Nebraska; 13.2%
- Kansas; 13.8%
- Pennsylvania; 13.9%
- New Jersey; 14%
- Connecticut; 14.5%
- New York; 14.7%
- Illinois; 16.6%
See how other states fared
here. (
Here are the states where people pay less for groceries.)