WASHINGTON — Uncle Sam takes his cut of our past year’s earnings every April, and since the tax code is so complicated, it’s hard for the average person to tell how they will be impacted. One simple ratio known as the “tax burden” helps cut through the confusion. Unlike tax rates, which vary widely based on an individual’s circumstances, 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.
Combining state income, property and sales taxes, Kentucky ranked as having the 28th heaviest tax burden, according to WalletHub. Kentucky’s property taxes are low, but its income tax rate is higher than most, ranking 14th.
To determine the residents with the biggest tax burdens, WalletHub 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.
Key Findings
- New York has the highest overall tax burden, while Alaska has the lowest.
- Maine has the highest property tax burden, while Alabama has the lowest.
- California has the highest individual income tax burden, while seven states (including Texas, Florida and Washington) have the lowest.
- Washington has the highest sales and excise tax burden, while New Hampshire has the lowest.
- Red states have a lower tax burden than blue states, on average.
Overall Tax Burden by State
| Overall Rank* | State | Total Tax Burden (%) |
Property Tax Burden (%) |
Individual Income Tax Burden (%) |
Total Sales & Excise Tax Burden (%) |
|---|---|---|---|---|---|
| 1 | New York | 12.02% | 4.36% (5) |
4.63% (2) |
3.03% (31) |
| 2 | Hawaii | 11.80% | 2.64% (25) |
3.82% (6) |
5.34% (3) |
| 3 | Vermont | 11.12% | 4.85% (2) |
3.09% (11) |
3.18% (27) |
| 4 | Maine | 10.74% | 4.86% (1) |
2.59% (21) |
3.29% (24) |
| 5 | California | 10.40% | 2.73% (23) |
4.87% (1) |
2.80% (37) |
| 6 | Connecticut | 10.08% | 3.95% (6) |
3.42% (9) |
2.71% (40) |
| 7 | Minnesota | 9.95% | 2.82% (22) |
4.01% (4) |
3.12% (28) |
| 8 | Illinois | 9.67% | 3.67% (9) |
2.57% (22) |
3.43% (21) |
| 9 | New Jersey | 9.47% | 4.59% (3) |
2.36% (30) |
2.52% (44) |
| 10 | Rhode Island | 9.38% | 3.83% (7) |
2.49% (24) |
3.06% (30) |
| 11 | Utah | 9.35% | 2.19% (38) |
3.57% (7) |
3.59% (16) |
| 12 | Kansas | 9.29% | 3.04% (16) |
2.67% (17) |
3.58% (17) |
| 13 | Maryland | 9.26% | 2.60% (30) |
4.00% (5) |
2.66% (41) |
| 14 | Iowa | 9.21% | 3.39% (12) |
2.39% (29) |
3.43% (21) |
| 15 | Nebraska | 9.16% | 3.55% (10) |
2.60% (20) |
3.01% (32) |
| 16 | Ohio | 8.92% | 2.72% (24) |
2.48% (26) |
3.72% (13) |
| 17 | Indiana | 8.85% | 2.14% (39) |
3.06% (12) |
3.65% (14) |
| 18 | Arkansas | 8.79% | 1.65% (48) |
2.26% (32) |
4.88% (6) |
| 19 | Mississippi | 8.76% | 2.63% (26) |
1.86% (36) |
4.27% (8) |
| 20 | Massachusetts | 8.55% | 3.35% (13) |
3.37% (10) |
1.83% (45) |
| 21 | Virginia | 8.45% | 2.89% (21) |
2.98% (14) |
2.58% (43) |
| 21 | West Virginia | 8.45% | 2.22% (37) |
2.61% (19) |
3.62% (15) |
| 23 | Oregon | 8.44% | 2.95% (18) |
4.30% (3) |
1.19% (48) |
| 24 | Colorado | 8.42% | 2.93% (20) |
2.49% (24) |
3.00% (33) |
| 25 | Pennsylvania | 8.36% | 2.62% (28) |
2.64% (18) |
3.10% (29) |
| 26 | Wisconsin | 8.32% | 2.98% (17) |
2.57% (22) |
2.77% (39) |
| 27 | Louisiana | 8.29% | 1.83% (46) |
1.57% (39) |
4.89% (5) |
| 28 | Kentucky | 8.26% | 1.89% (43) |
2.98% (14) |
3.39% (23) |
| 29 | Washington | 8.04% | 2.58% (31) |
0.00% (44) |
5.46% (1) |
| 30 | New Mexico | 8.03% | 1.86% (44) |
1.13% (40) |
5.04% (4) |
| 31 | Michigan | 8.02% | 2.94% (19) |
2.23% (33) |
2.85% (36) |
| 32 | North Carolina | 7.89% | 2.00% (42) |
2.68% (16) |
3.21% (26) |
| 33 | Idaho | 7.86% | 2.12% (40) |
2.47% (27) |
3.27% (25) |
| 34 | Arizona | 7.79% | 2.26% (36) |
1.62% (38) |
3.91% (10) |
| 35 | Missouri | 7.76% | 2.41% (35) |
2.40% (28) |
2.95% (34) |
| 36 | Georgia | 7.65% | 2.50% (33) |
2.36% (30) |
2.79% (38) |
| 37 | Texas | 7.56% | 3.71% (8) |
0.00% (44) |
3.85% (12) |
| 38 | Alabama | 7.52% | 1.33% (50) |
2.01% (34) |
4.18% (9) |
| 39 | Montana | 7.50% | 3.24% (14) |
3.00% (13) |
1.26% (47) |
| 39 | South Carolina | 7.50% | 2.63% (26) |
2.00% (35) |
2.87% (35) |
| 41 | Nevada | 7.37% | 2.02% (41) |
0.00% (44) |
5.35% (2) |
| 42 | Oklahoma | 7.04% | 1.71% (47) |
1.75% (37) |
3.58% (17) |
| 43 | North Dakota | 6.80% | 2.44% (34) |
0.90% (41) |
3.46% (19) |
| 44 | South Dakota | 6.44% | 2.58% (31) |
0.00% (44) |
3.86% (11) |
| 45 | Delaware | 6.43% | 1.85% (45) |
3.57% (7) |
1.01% (49) |
| 46 | Tennessee | 6.07% | 1.64% (49) |
0.05% (43) |
4.38% (7) |
| 47 | Florida | 6.05% | 2.61% (29) |
0.00% (44) |
3.44% (20) |
| 48 | Wyoming | 5.70% | 3.10% (15) |
0.00% (44) |
2.60% (42) |
| 49 | New Hampshire | 5.63% | 4.51% (4) |
0.15% (42) |
0.97% (50) |
| 50 | Alaska | 4.93% | 3.54% (11) |
0.00% (44) |
1.39% (46) |
