Paying taxes is not fun or pleasant, and we already know that tax burdens in the United States are comprised of several key components that contribute to the country’s tax system, but they are higher in some states than in others. To mention a few we can talk about the personal income tax, which are taxes that tax the individual income of people, both workers and investors.
These taxes exist at the federal and state levels, and in some places they are higher than in others. There are also corporate sales taxes that tax companies’ profits. These exist equally at the federal and state levels. Then there are sales taxes, property taxes, payroll taxes, and other taxes and fees that exist in particular states, such as taxes on alcohol, tobacco and fuels, or inheritance and gift taxes, and fees for specific government services.
Recently, Visual Capitalist carried out a survey of the tax burden by state in the year 2024. In this table, the state with the highest tax burden reached 12% while in the lowest only 4.9%. An extremely detailed map based on data compiled in conjunction with WalletHub shows all the states in which data on tax burdens were collected.
States With the Highest Tax Burdens in 2024
Let’s talk first about the three states with the highest tax burdens. The first is New York where the tax burden reached 12% being the highest in the whole country. It is followed in the second place by Hawaii, with a tax burden of 11.8%, while in third place is the state of Vermont with a tax burden of 11.1%. Completing the top 5 are Maine, with 10.7% and California, with 10.4%
Now let’s talk about those with the lowest tax burdens in the entire United States: In the second-to-last place is Wyoming, with a tax burden of 5.7% on its inhabitants, followed by New Hampshire with a fairly similar burden of 5.6%.
In the last place (which is actually the first because it is the state with the lowest tax burden in the entire country) is Alaska, affectionately nicknamed “the Last Frontier”, where its residents, whether businesses or individuals, have an average tax burden of 4.9%.
Why Are Taxes in NY So High Compared to Other States?
Breaking down to the highest, New York, it is established that the average New Yorker pays 4.6% of his income in income taxes, 4.4% in property taxes and 3% in sales and consumption taxes.
At the other end of the list, Alaska has the lowest tax burden of all the states because the inhabitants do not pay state income taxes, in addition to receiving some stimulus checks as a profit, distributed by law, by the income of the oil industry.
Do You Hate Paying Taxes? These States Are for You
In addition to Alaska, where there is no state income tax, there are several states in the United States that do not charge income taxes
These are Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. It is worth a special mention for the state of New Hampshire that has no regular income taxes, but charges a fixed 4% on interest and dividend income according to the Foundation Taxes.