The Best and Worst States for Taxes — Ranked
This year the extended tax deadline of July 15, may have benefitted some Americans — but others may be hurting from the damage done to their wallets this year. Unlike tax rates, tax burdens measure the amount of money taken from your personal income. Tax burdens vary depending on where you live, how much you earn, the property that you own and how you choose to spend your hard-earned paycheck. The different taxes can get confusing and quickly add up, dwindling away your disposable income.
For example, the Federal Insurance Contributions Act — aka FICA — authorizes a payroll tax that helps fund the Social Security and Medicare programs. When it comes to sales tax, individual states determine which goods and services apply. Some states choose not to tax clothing or groceries, whereas others may tax certain products at a lower rate. Many local governments also impose taxes on specific products, which will add to your overall tax bill.
To determine which states are the most heavily taxed, GOBankingRates analyzed different tax rates and tax burdens affecting the median household income in all 50 states. The study ranks every state from the lowest overall taxes paid to the highest. You’ll find that some states ranked higher because they don’t have an income tax or sales tax — New Hampshire residents are particularly lucky, as it doesn’t impose either tax. Getting a better understanding of the average tax burden in your state can help you avoid any nasty shocks when you receive your tax refund after filing.
Last updated: October 1, 2020
1. West Virginia
Median household income: $43,469
Federal income tax paid (plus FICA): $6,911
State income tax paid: $1,663
Combined state and average local sales tax rate: 6.4%
Sales tax paid: $3,166.53
Median home value: $99,000
Property tax rate: 0.59%
Property tax paid: $579.15
Overall taxes paid: $12,319.68
Tax as a proportion of income: 28.34%
2. Mississippi
Median household income: $43,529
Federal income tax paid (plus FICA): $6,923
State income tax paid: $1,611
Combined state and average local sales tax rate: 7.07%
Sales tax paid: $3,498.02
Median home value: $130,200
Property tax rate: 0.8%
Property tax paid: $1,046.81
Overall taxes paid: $13,078.83
Tax as a proportion of income: 30.05%
3. Montana
Median household income: $53,386
Federal income tax paid (plus FICA): $9,128
State income tax paid: $2,317
Combined state and average local sales tax rate: 0%
Sales tax paid: $0
Median home value: $242,100
Property tax rate: 0.84%
Property tax paid: $2,033.64
Overall taxes paid: $13,478.64
Tax as a proportion of income: 25.25%
4. Louisiana
Median household income: $46,145
Federal income tax paid (plus FICA): $7,437
State income tax paid: $1,220
Combined state and average local sales tax rate: 9.45%
Sales tax paid: $4,675.58
Median home value: $147,600
Property tax rate: 0.52%
Property tax paid: $767.52
Overall taxes paid: $14,100.10
Tax as a proportion of income: 30.56%
5. Kentucky
Median household income: $48,375
Federal income tax paid (plus FICA): $7,876
State income tax paid: $2,292
Combined state and average local sales tax rate: 6%
Sales tax paid: $2,968.62
Median home value: $148,400
Property tax rate: 0.86%
Property tax paid: $1,279.21
Overall taxes paid: $14,415.83
Tax as a proportion of income: 29.8%
6. New Mexico
Median household income: $46,744
Federal income tax paid (plus FICA): $7,555
State income tax paid: $1,501
Combined state and average local sales tax rate: 7.82%
Sales tax paid: $3,869.10
Median home value: $197,400
Property tax rate: 0.78%
Property tax paid: $1,531.82
Overall taxes paid: $14,456.93
Tax as a proportion of income: 30.93%
7. Tennessee
Median household income: $51,340
Federal income tax paid (plus FICA): $8,522
State income tax paid: $0
Combined state and average local sales tax rate: 9.47%
Sales tax paid: $4,684.98
Median home value: $170,800
Property tax rate: 0.74%
Property tax paid: $1,260.50
Overall taxes paid: $14,467.48
Tax as a proportion of income: 28.18%
8. Florida
Median household income: $52,594
Federal income tax paid (plus FICA): $8,893
State income tax paid: $0
Combined state and average local sales tax rate: 7.05%
Sales tax paid: $3,488.13
Median home value: $237,900
Property tax rate: 0.98%
Property tax paid: $2,331.42
Overall taxes paid: $14,712.55
Tax as a proportion of income: 27.97%
Understand: How You Can Prepare For Rising Gas Prices and Taxes
9. Arkansas
Median household income: $45,869
Federal income tax paid (plus FICA): $7,383
State income tax paid: $2,099
Combined state and average local sales tax rate: 9.47%
Sales tax paid: $4,683
Median home value: $129,500
Property tax rate: 0.63%
Property tax paid: $811.97
Overall taxes paid: $14,976.96
Tax as a proportion of income: 32.65%
10. Alabama
Median household income: $48,123
Federal income tax paid (plus FICA): $7,825
State income tax paid: $2,059
Combined state and average local sales tax rate: 9.16%
Sales tax paid: $4,532.09
Median home value: $134,300
Property tax rate: 0.42%
Property tax paid: $566.75
Overall taxes paid: $14,982.84
Tax as a proportion of income: 31.13%
11. South Carolina
Median household income: $50,570
Federal income tax paid (plus FICA): $8,307
State income tax paid: $2,300
Combined state and average local sales tax rate: 7.46%
Sales tax paid: $3,690.98
Median home value: $170,700
Property tax rate: 0.57%
Property tax paid: $978.11
Overall taxes paid: $15,276.10
Tax as a proportion of income: 30.21%
12. Wyoming
Median household income: $60,434
Federal income tax paid (plus FICA): $11,218
State income tax paid: $0
Combined state and average local sales tax rate: 5.32%
Sales tax paid: $2,632.18
Median home value: $236,100
Property tax rate: 0.61%
Property tax paid: $1,447.29
Overall taxes paid: $15,297.47
Tax as a proportion of income: 25.31%
13. Oklahoma
Median household income: $50,051
Federal income tax paid (plus FICA): $8,205
State income tax paid: $1,947
Combined state and average local sales tax rate: 8.94%
Sales tax paid: $4,423.24
Median home value: $125,400
Property tax rate: 0.9%
Property tax paid: $1,124.84
Overall taxes paid: $15,700.08
Tax as a proportion of income: 31.37%
14. South Dakota
Median household income: $56,521
Federal income tax paid (plus FICA): $10,058
State income tax paid: $0
Combined state and average local sales tax rate: 6.4%
Sales tax paid: $3,166.53
Median home value: $194,700
Property tax rate: 1.32%
Property tax paid: $2,566.15
Overall taxes paid: $15,790.67
Tax as a proportion of income: 27.94%
15. Indiana
Median household income: $54,181
Federal income tax paid (plus FICA): $9,364
State income tax paid: $1,718
Combined state and average local sales tax rate: 7%
Sales tax paid: $3,463.39
Median home value: $148,700
Property tax rate: 0.87%
Property tax paid: $1,290.72
Overall taxes paid: $15,836.11
Tax as a proportion of income: 29.23%
16. Delaware
Median household income: $62,852
Federal income tax paid (plus FICA): $11,935
State income tax paid: $2,921
Combined state and average local sales tax rate: 0%
Sales tax paid: $0
Median home value: $236,300
Property tax rate: 0.56%
Property tax paid: $1,316.19
Overall taxes paid: $16,172.19
Tax as a proportion of income: 25.73%
17. Ohio
Median household income: $54,021
Federal income tax paid (plus FICA): $9,317
State income tax paid: $1,191
Combined state and average local sales tax rate: 7.17%
Sales tax paid: $3,547.50
Median home value: $142,600
Property tax rate: 1.57%
Property tax paid: $2,241.67
Overall taxes paid: $16,297.17
Tax as a proportion of income: 30.17%
18. North Carolina
Median household income: $52,752
Federal income tax paid (plus FICA): $8,941
State income tax paid: $2,420
Combined state and average local sales tax rate: 6.97%
Sales tax paid: $3,448.55
Median home value: $189,900
Property tax rate: 0.86%
Property tax paid: $1,625.54
Overall taxes paid: $16,435.09
Tax as a proportion of income: 31.16%
19. Idaho
Median household income: $52,225
Federal income tax paid (plus FICA): $8,784
State income tax paid: $2,637
Combined state and average local sales tax rate: 6.03%
Sales tax paid: $2,983.46
Median home value: $274,200
Property tax rate: 0.75%
Property tax paid: $2,051.02
Overall taxes paid: $16,455.48
Tax as a proportion of income: 31.51%
20. Nevada
Median household income: $58,003
Federal income tax paid (plus FICA): $10,497
State income tax paid: $0
Combined state and average local sales tax rate: 8.14%
Sales tax paid: $4,027.43
Median home value: $291,800
Property tax rate: 0.69%
Property tax paid: $2,007.58
Overall taxes paid: $16,532.01
Tax as a proportion of income: 28.5%
21. Missouri
Median household income: $53,578
Federal income tax paid (plus FICA): $9,186
State income tax paid: $1,934
Combined state and average local sales tax rate: 8.16%
Sales tax paid: $4,037.32
Median home value: $163,700
Property tax rate: 0.99%
Property tax paid: $1,615.72
Overall taxes paid: $16,773.04
Tax as a proportion of income: 31.31%
22. Michigan
Median household income: $54,909
Federal income tax paid (plus FICA): $9,580
State income tax paid: $2,162
Combined state and average local sales tax rate: 6%
Sales tax paid: $2,968.62
Median home value: $154,500
Property tax rate: 1.64%
Property tax paid: $2,538.44
Overall taxes paid: $17,249.06
Tax as a proportion of income: 31.41%
23. Arizona
Median household income: $56,581
Federal income tax paid (plus FICA): $10,075
State income tax paid: $1,501
Combined state and average local sales tax rate: 8.39%
Sales tax paid: $4,151.12
Median home value: $257,600
Property tax rate: 0.72%
Property tax paid: $1,865.02
Overall taxes paid: $17,592.14
Tax as a proportion of income: 31.09%
24. North Dakota
Median household income: $61,843
Federal income tax paid (plus FICA): $11,636
State income tax paid: $684
Combined state and average local sales tax rate: 6.85%
Sales tax paid: $3,389.17
Median home value: $210,000
Property tax rate: 1.01%
Property tax paid: $2,129.40
Overall taxes paid: $17,838.57
Tax as a proportion of income: 28.84%
25. Georgia
Median household income: $56,183
Federal income tax paid (plus FICA): $9,958
State income tax paid: $2,743
Combined state and average local sales tax rate: 7.33%
Sales tax paid: $3,626.66
Median home value: $193,500
Property tax rate: 0.91%
Property tax paid: $1,768.59
Overall taxes paid: $18,096.25
Tax as a proportion of income: 32.21%
26. Maine
Median household income: $56,277
Federal income tax paid (plus FICA): $9,985
State income tax paid: $2,505
Combined state and average local sales tax rate: 5.5%
Sales tax paid: $2,721.24
Median home value: $237,800
Property tax rate: 1.35%
Property tax paid: $3,219.81
Overall taxes paid: $18,431.05
Tax as a proportion of income: 32.75%
27. Texas
Median household income: $59,206
Federal income tax paid (plus FICA): $10,854
State income tax paid: $0
Combined state and average local sales tax rate: 8.19%
Sales tax paid: $4,052.17
Median home value: $199,900
Property tax rate: 1.83%
Property tax paid: $3,662.17
Overall taxes paid: $18,568.33
Tax as a proportion of income: 31.36%
Find Out: The Average American’s Tax Bill in the 50 Biggest US Cities
28. Pennsylvania
Median household income: $59,195
Federal income tax paid (plus FICA): $10,850
State income tax paid: $1,817
Combined state and average local sales tax rate: 6.34%
Sales tax paid: $3,136.84
Median home value: $176,500
Property tax rate: 1.58%
Property tax paid: $2,785.17
Overall taxes paid: $18,589.01
Tax as a proportion of income: 31.4%
29. Kansas
Median household income: $56,422
Federal income tax paid (plus FICA): $10,028
State income tax paid: $2,459
Combined state and average local sales tax rate: 8.67%
Sales tax paid: $4,289.66
Median home value: $141,500
Property tax rate: 1.4%
Property tax paid: $1,983.83
Overall taxes paid: $18,760.49
Tax as a proportion of income: 33.25%
30. Iowa
Median household income: $58,570
Federal income tax paid (plus FICA): $10,666
State income tax paid: $2,517
Combined state and average local sales tax rate: 6.82%
Sales tax paid: $3,374.33
Median home value: $146,500
Property tax rate: 1.53%
Property tax paid: $2,241.45
Overall taxes paid: $18,798.78
Tax as a proportion of income: 32.1%
31. Vermont
Median household income: $57,513
Federal income tax paid (plus FICA): $10,352
State income tax paid: $1,868
Combined state and average local sales tax rate: 6.22%
Sales tax paid: $3,077.47
Median home value: $210,600
Property tax rate: 1.83%
Property tax paid: $3,856.09
Overall taxes paid: $19,153.56
Tax as a proportion of income: 33.3%
32. Oregon
Median household income: $60,212
Federal income tax paid (plus FICA): $11,152
State income tax paid: $4,370
Combined state and average local sales tax rate: 0%
Sales tax paid: $0
Median home value: $350,600
Property tax rate: 1.04%
Property tax paid: $3,635.72
Overall taxes paid: $19,157.72
Tax as a proportion of income: 31.82%
33. Alaska
Median household income: $73,181
Federal income tax paid (plus FICA): $14,997
State income tax paid: $0
Combined state and average local sales tax rate: 1.76%
Sales tax paid: $870.80
Median home value: $326,000
Property tax rate: 1.19%
Property tax paid: $3,879.40
Overall taxes paid: $19,747.20
Tax as a proportion of income: 26.98%
34. Nebraska
Median household income: $59,970
Federal income tax paid (plus FICA): $11,081
State income tax paid: $2,758
Combined state and average local sales tax rate: 6.88%
Sales tax paid: $3,404.02
Median home value: $169,900
Property tax rate: 1.8%
Property tax paid: $3,059.90
Overall taxes paid: $20,302.92
Tax as a proportion of income: 33.86%
35. Wisconsin
Median household income: $59,305
Federal income tax paid (plus FICA): $10,884
State income tax paid: $3,048
Combined state and average local sales tax rate: 5.44%
Sales tax paid: $2,691.55
Median home value: $191,600
Property tax rate: 1.94%
Property tax paid: $3,718.96
Overall taxes paid: $20,342.50
Tax as a proportion of income: 34.3%
36. New Hampshire
Median household income: $73,381
Federal income tax paid (plus FICA): $15,057
State income tax paid: $0
Combined state and average local sales tax rate: 0%
Sales tax paid: $0
Median home value: $280,400
Property tax rate: 2.2%
Property tax paid: $6,168.80
Overall taxes paid: $21,225.80
Tax as a proportion of income: 28.93%
37. Rhode Island
Median household income: $63,870
Federal income tax paid (plus FICA): $12,237
State income tax paid: $1,925
Combined state and average local sales tax rate: 7%
Sales tax paid: $3,463.39
Median home value: $284,200
Property tax rate: 1.66%
Property tax paid: $4,709.19
Overall taxes paid: $22,334.58
Tax as a proportion of income: 34.97%
38. Utah
Median household income: $68,358
Federal income tax paid (plus FICA): $13,567
State income tax paid: $3,384
Combined state and average local sales tax rate: 7.17%
Sales tax paid: $3,546.51
Median home value: $351,100
Property tax rate: 0.66%
Property tax paid: $2,320.77
Overall taxes paid: $22,818.28
Tax as a proportion of income: 33.38%
39. Colorado
Median household income: $69,117
Federal income tax paid (plus FICA): $13,792
State income tax paid: $3,200
Combined state and average local sales tax rate: 7.63%
Sales tax paid: $3,775.10
Median home value: $381,300
Property tax rate: 0.55%
Property tax paid: $2,100.96
Overall taxes paid: $22,868.06
Tax as a proportion of income: 33.09%
40. Washington
Median household income: $70,979
Federal income tax paid (plus FICA): $14,345
State income tax paid: $0
Combined state and average local sales tax rate: 9.21%
Sales tax paid: $4,556.83
Median home value: $393,800
Property tax rate: 1.03%
Property tax paid: $4,060.08
Overall taxes paid: $22,961.91
Tax as a proportion of income: 32.35%
41. Virginia
Median household income: $71,535
Federal income tax paid (plus FICA): $14,509
State income tax paid: $3,630
Combined state and average local sales tax rate: 5.65%
Sales tax paid: $2,795.45
Median home value: $264,200
Property tax rate: 0.8%
Property tax paid: $2,116.24
Overall taxes paid: $23,050.69
Tax as a proportion of income: 32.22%
Discover: How Much You Really Take Home From the Average Salary in Each State
42. Illinois
Median household income: $62,992
Federal income tax paid (plus FICA): $11,977
State income tax paid: $3,019
Combined state and average local sales tax rate: 8.78%
Sales tax paid: $4,344.08
Median home value: $183,500
Property tax rate: 2.31%
Property tax paid: $4,244.36
Overall taxes paid: $23,584.44
Tax as a proportion of income: 37.44%
43. Minnesota
Median household income: $68,388
Federal income tax paid (plus FICA): $13,577
State income tax paid: $3,630
Combined state and average local sales tax rate: 7.44%
Sales tax paid: $3,681.09
Median home value: $239,900
Property tax rate: 1.15%
Property tax paid: $2,758.85
Overall taxes paid: $23,646.94
Tax as a proportion of income: 34.58%
44. New York
Median household income: $64,894
Federal income tax paid (plus FICA): $12,540
State income tax paid: $3,289
Combined state and average local sales tax rate: 8.49%
Sales tax paid: $4,200.60
Median home value: $305,300
Property tax rate: 1.68%
Property tax paid: $5,119.88
Overall taxes paid: $25,149.48
Tax as a proportion of income: 38.75%
45. Hawaii
Median household income: $77,765
Federal income tax paid (plus FICA): $16,357
State income tax paid: $5,393
Combined state and average local sales tax rate: 4.41%
Sales tax paid: $2,181.94
Median home value: $619,000
Property tax rate: 0.27%
Property tax paid: $1,677.49
Overall taxes paid: $25,609.43
Tax as a proportion of income: 32.93%
46. California
Median household income: $71,805
Federal income tax paid (plus FICA): $14,590
State income tax paid: $3,522
Combined state and average local sales tax rate: 8.66%
Sales tax paid: $4,284.71
Median home value: $550,800
Property tax rate: 0.77%
Property tax paid: $4,241.16
Overall taxes paid: $26,637.87
Tax as a proportion of income: 37.1%
47. Maryland
Median household income: $80,776
Federal income tax paid (plus FICA): $17,249
State income tax paid: $3,537
Combined state and average local sales tax rate: 6%
Sales tax paid: $2,968.62
Median home value: $290,500
Property tax rate: 1.1%
Property tax paid: $3,189.69
Overall taxes paid: $26,944.31
Tax as a proportion of income: 33.36%
48. Connecticut
Median household income: $74,168
Federal income tax paid (plus FICA): $15,290
State income tax paid: $3,629
Combined state and average local sales tax rate: 6.35%
Sales tax paid: $3,141.79
Median home value: $244,800
Property tax rate: 2.07%
Property tax paid: $5,060.02
Overall taxes paid: $27,120.81
Tax as a proportion of income: 36.57%
49. Massachusetts
Median household income: $77,385
Federal income tax paid (plus FICA): $16,244
State income tax paid: $3,722
Combined state and average local sales tax rate: 6.25%
Sales tax paid: $3,092.31
Median home value: $408,100
Property tax rate: 1.22%
Property tax paid: $4,978.82
Overall taxes paid: $28,037.13
Tax as a proportion of income: 36.23%
50. New Jersey
Median household income: $80,088
Federal income tax paid (plus FICA): $17,046
State income tax paid: $2,912
Combined state and average local sales tax rate: 6.6%
Sales tax paid: $3,265.48
Median home value: $329,000
Property tax rate: 2.44%
Property tax paid: $8,034.18
Overall taxes paid: $31,257.66
Tax as a proportion of income: 39.03%
More From GOBankingRates
Methodology: In order to determine the best and worst states for taxes, GOBankingRates looked at eight factors across all 50 states, in addition to the median household income, as sourced from the U.S. Census Bureau’s 2017 American Community Survey. The factors were: (1) federal income tax paid (plus FICA), (2) percentage of income paid toward federal income and FICA, (3) state income tax paid, and (4) percentage of income paid toward state income tax, which were all sourced using SmartAsset’s income tax calculator; (5) sales tax paid, which was calculated using the combined sales tax for each state, as sourced from the Tax Foundation, and then multiplied by 2018 annual expenditures (minus the “shelter” category), as sourced from the Bureau of Labor Statistics’ 2018 Consumer Expenditure Survey; (6) percentage of income spent on sales tax; (7) property tax paid, which was calculated using property tax rates, as sourced from SmartAsset’s property tax calculator, and the October 2019 average home value for each state, as sourced from Zillow; and (8) percentage of income paid toward property tax. Factors No. 1, 3, 5 and 7 were then combined to give (9) overall taxes paid, and factors No. 2, 4, 6 and 8 were combined to give (10) tax as a proportion of income. Factors No. 9 and 10 were ranked, with the lowest amount being best. All data used to conduct this ranking was compiled and verified on Nov. 18, 2019.
This article originally appeared on GOBankingRates.com: The Best and Worst States for Taxes — Ranked
