Introduction
Most of the states with the highest tax rates in the United States tend to be clustered in the northeastern region, along with a few other states scattered across the country, like California and Hawaii. New York, Connecticut, and Hawaii consistently rank among the top three states with the highest tax burdens. These states impose a combination of income taxes, sales taxes, property taxes, and other state-specific taxes, contributing to their overall high tax rates.
One common trend observed in these high-tax states is their relatively large populations and high cost of living. New York and California, for example, are home to major metropolitan areas such as New York City and Los Angeles, where the cost of living is considerably higher than the national average. To fund public services and infrastructure in densely populated areas, these states often rely on higher tax rates.
Furthermore, these states often have progressive income tax systems, meaning that higher-income individuals pay a larger share of their earnings in taxes. This progressive tax structure aims to redistribute wealth and provide funding for various government programs and services. However, it also contributes to the higher overall tax burden in these states.
Another factor that influences high tax rates in some states is the heavy reliance on property taxes. Vermont and New Jersey, for instance, have relatively high property tax rates compared to other states. This is partly due to the need for revenue to support public education, infrastructure, and local government services.
It’s worth noting that these high-tax states also tend to have a wide range of social benefits and services, such as robust healthcare systems, well-funded public schools, and extensive public transportation networks. While the high tax burden may seem daunting to some, it is often a trade-off for the comprehensive services and amenities provided to residents.
State Tax Rankings
| # | State | State-Local Tax Burden | Annual Taxes | Property Tax Rate | Corporate Tax Rate |
|---|---|---|---|---|---|
| 1 | New York | 15.9% | $9,111 | 1.3% | 7.3% |
| 2 | Connecticut | 15.4% | $7,490 | 1.73% | 7.5% |
| 3 | Hawaii | 14.1% | $9,996 | 0.31% | 6.4% |
| 4 | Vermont | 13.6% | $6,409 | 1.76% | 8.5% |
| 5 | California | 13.5% | $9,054 | 0.7% | 8.8% |
| 6 | New Jersey | 13.2% | $8,330 | 2.13% | 11.5% |
| 7 | Illinois | 12.9% | $7,141 | 1.97% | 9.5% |
| 8 | Virginia | 12.5% | $7,951 | 0.84% | 6% |
| 9 | Delaware | 12.4% | $7,195 | 0.59% | 8.7% |
| 10 | Maine | 12.4% | $7,697 | 1.2% | 8.9% |
| 11 | Minnesota | 12.1% | $7,656 | 1.05% | 9.8% |
| 12 | Utah | 12.1% | $6,674 | 0.56% | 4.9% |
| 13 | District of Columbia | 12% | $9,839 | 8.3% | |
| 14 | Massachusetts | 11.5% | $8,626 | 1.08% | 8% |
| 15 | Nebraska | 11.5% | $7,177 | 1.54% | 7.3% |
| 16 | Rhode Island | 11.4% | $6,552 | 1.37% | 7% |
| 17 | Maryland | 11.3% | $7,677 | 1.01% | 8.3% |
| 18 | Iowa | 11.2% | $6,799 | 1.43% | 8.4% |
| 19 | Kansas | 11.2% | $6,695 | 1.28% | 7% |
| 20 | Wisconsin | 10.9% | $6,568 | 1.53% | 7.9% |
| 21 | Oregon | 10.8% | $9,213 | 0.91% | 7.6% |
| 22 | Idaho | 10.7% | $6,872 | 0.65% | 5.8% |
| 23 | Washington | 10.7% | $5,381 | 0.84% | 0% |
| 24 | Pennsylvania | 10.6% | $5,903 | 1.43% | 9% |
| 25 | Montana | 10.5% | $7,078 | 0.74% | 6.8% |
| 26 | Arkansas | 10.2% | $6,419 | 0.61% | 5.3% |
| 27 | New Mexico | 10.2% | $6,370 | 0.59% | 5.9% |
| 28 | Ohio | 10% | $5,426 | 1.52% | 0% |
| 29 | North Carolina | 9.9% | $6,846 | 0.78% | 2.5% |
| 30 | Alabama | 9.8% | $6,271 | 0.37% | 6.5% |
| 31 | Mississippi | 9.8% | $6,172 | 0.63% | 5% |
| 32 | West Virginia | 9.8% | $5,931 | 0.53% | 6.5% |
| 33 | Colorado | 9.7% | $7,372 | 0.52% | 4.6% |
| 34 | Kentucky | 9.6% | $6,092 | 0.78% | 5% |
| 35 | Nevada | 9.6% | $4,713 | 0.56% | 0% |
| 36 | New Hampshire | 9.6% | $5,025 | 1.89% | 7.5% |
| 37 | Arizona | 9.5% | $6,268 | 0.6% | 4.9% |
| 38 | Indiana | 9.3% | $5,643 | 0.81% | 4.9% |
| 39 | Missouri | 9.3% | $6,558 | 0.96% | 4% |
| 40 | Florida | 9.1% | $5,002 | 0.86% | 5.5% |
| 41 | Louisiana | 9.1% | $6,029 | 0.51% | 7.5% |
| 42 | Oklahoma | 9% | $6,206 | 0.83% | 4% |
| 43 | Georgia | 8.9% | $7,227 | 0.87% | 5.8% |
| 44 | South Carolina | 8.9% | $7,613 | 0.53% | 5% |
| 45 | North Dakota | 8.8% | $4,812 | 0.88% | 4.3% |
| 46 | Michigan | 8.6% | $6,193 | 1.53% | 6% |
| 47 | Texas | 8.6% | $4,761 | 1.6% | 0% |
| 48 | South Dakota | 8.4% | $4,310 | 1.14% | 0% |
| 49 | Tennessee | 7.6% | $4,483 | 0.63% | 6.5% |
| 50 | Wyoming | 7.5% | $4,425 | 0.51% | 0% |
| 51 | Alaska | 4.6% | $4,853 | 0.98% | 9.4% |
States With Highest Taxes
The ten states with the highest tax burdens are New York, Connecticut, Hawaii, Vermont, California, New Jersey, Illinois, Virginia, Delaware, and Maine. New York tops the list of states with the highest taxes, with a tax burden of 15.90%, ranking first overall. Connecticut follows closely behind at 15.40% in the second position for highest taxed states. Hawaii ranks third with a tax burden of 14.10%, while Vermont and California round out the top five with tax burdens of 13.60% and 13.50% respectively. New Jersey occupies the sixth spot for highest taxed states, with a tax burden of 13.20%, followed by Illinois at 12.90%. Virginia, Delaware, and Maine complete the top 10 list of states with the highest taxes, with tax burdens of 12.50%, 12.40%, and 12.40% respectively.
The ten states with the highest taxes are :
1. New York – 15.90%
2. Connecticut – 15.40%
3. Hawaii – 14.10%
4. Vermont – 13.60%
5. California – 13.50%
6. New Jersey – 13.20%
7. Illinois – 12.90%
8. Virginia – 12.50%
9. Delaware – 12.40%
10. Maine – 12.40%
Highest Taxed States
Alabama
Ranked in the US
#30
Annual Taxes
$6,271
Ranked in the US
#31
0.37%
Ranked in the US
#49
Ranked in the US
#24
Alaska
Ranked in the US
#51
Annual Taxes
$4,853
Ranked in the US
#45
0.98%
Ranked in the US
#21
Ranked in the US
#4
Arizona
Ranked in the US
#37
Annual Taxes
$6,268
Ranked in the US
#32
Ranked in the US
#39
Ranked in the US
#38
Arkansas
Ranked in the US
#26
Annual Taxes
$6,419
Ranked in the US
#28
0.61%
Ranked in the US
#38
Ranked in the US
#34
California
Ranked in the US
#5
Annual Taxes
$9,054
Ranked in the US
#5
Ranked in the US
#34
Ranked in the US
#7
California ranks fifth highest taxed state, with a tax burden of 13.50%. The state's tax structure includes income taxes, sales taxes, and property taxes, which fund a range of services such as education, transportation, and healthcare.
Colorado
Ranked in the US
#33
Annual Taxes
$7,372
Ranked in the US
#14
0.52%
Ranked in the US
#46
Ranked in the US
#41
Connecticut
Ranked in the US
#2
Annual Taxes
$7,490
Ranked in the US
#13
1.73%
Ranked in the US
#5
Ranked in the US
#16
Connecticut ranks second for highest tax rate in the US, with a tax burden of 15.40%. The state levies income taxes, sales taxes, and property taxes to generate revenue for funding education, healthcare, and other public programs and services.
Delaware
Ranked in the US
#9
Annual Taxes
$7,195
Ranked in the US
#16
0.59%
Ranked in the US
#40
Ranked in the US
#8
Delaware has a tax burden of 12.40%, securing the ninth position for highest tax burden in the US. The state imposes income taxes, sales taxes, and property taxes, while its advantageous corporate tax structure attracts many businesses.
District of Columbia
Ranked in the US
#13
Annual Taxes
$9,839
Ranked in the US
#2
Ranked in the US
#11
The District of Columbia has a tax burden of 12%, ranking thirteenth in the list of highest tax rates in the US. The district imposes income taxes, sales taxes, and property taxes to fund various public services and government operations.
Florida
Ranked in the US
#40
Annual Taxes
$5,002
Ranked in the US
#44
0.86%
Ranked in the US
#26
Ranked in the US
#33
Georgia
Ranked in the US
#43
Annual Taxes
$7,227
Ranked in the US
#15
0.87%
Ranked in the US
#25
Ranked in the US
#31
Hawaii
Ranked in the US
#3
Annual Taxes
$9,996
Ranked in the US
#1
0.31%
Ranked in the US
#50
Ranked in the US
#27
With a tax burden of 14.10%, Hawaii secures the third position for states with the highest taxes. The state relies heavily on tourism-related taxes, such as hotel occupancy taxes and general excise taxes, to support its economy and fund public services.
Idaho
Ranked in the US
#22
Annual Taxes
$6,872
Ranked in the US
#20
0.65%
Ranked in the US
#35
Ranked in the US
#32
Illinois
Ranked in the US
#7
Annual Taxes
$7,141
Ranked in the US
#18
1.97%
Ranked in the US
#2
Ranked in the US
#3
With a tax burden of 12.90%, Illinois ranks seventh highest tax rate in the US. The state utilizes income taxes, sales taxes, and property taxes to finance education, healthcare, and public welfare programs.
Indiana
Ranked in the US
#38
Annual Taxes
$5,643
Ranked in the US
#40
0.81%
Ranked in the US
#30
Ranked in the US
#39
Iowa
Ranked in the US
#18
Annual Taxes
$6,799
Ranked in the US
#22
1.43%
Ranked in the US
#11
Ranked in the US
#10
Kansas
Ranked in the US
#19
Annual Taxes
$6,695
Ranked in the US
#23
1.28%
Ranked in the US
#15
Ranked in the US
#21
Kentucky
Ranked in the US
#34
Annual Taxes
$6,092
Ranked in the US
#36
0.78%
Ranked in the US
#31
Ranked in the US
#35
Louisiana
Ranked in the US
#41
Annual Taxes
$6,029
Ranked in the US
#37
0.51%
Ranked in the US
#47
Ranked in the US
#17
Maine
Ranked in the US
#10
Annual Taxes
$7,697
Ranked in the US
#9
Ranked in the US
#16
Ranked in the US
#6
Maine ranks tenth highest tax rate in the US, with a tax burden of 12.40%. The state's tax structure comprises income taxes, sales taxes, and property taxes, which support education, healthcare, and environmental conservation efforts.
Maryland
Ranked in the US
#17
Annual Taxes
$7,677
Ranked in the US
#10
1.01%
Ranked in the US
#20
Ranked in the US
#12
Massachusetts
Ranked in the US
#14
Annual Taxes
$8,626
Ranked in the US
#6
1.08%
Ranked in the US
#18
Ranked in the US
#13
Massachusetts holds the fourteenth position for highest taxed states, with a tax burden of 11.50%. The state relies on income taxes, sales taxes, and property taxes to finance education, healthcare, and transportation.
Michigan
Ranked in the US
#46
Annual Taxes
$6,193
Ranked in the US
#34
1.53%
Ranked in the US
#8
Ranked in the US
#28
Minnesota
Ranked in the US
#11
Annual Taxes
$7,656
Ranked in the US
#11
1.05%
Ranked in the US
#19
Ranked in the US
#2
Minnesota has a tax burden of 12.10%, placing it in the eleventh position for highest taxed states. The state levies income taxes, sales taxes, and property taxes to fund education, healthcare, and social services.
Mississippi
Ranked in the US
#31
Annual Taxes
$6,172
Ranked in the US
#35
0.63%
Ranked in the US
#36
Ranked in the US
#36
Missouri
Ranked in the US
#39
Annual Taxes
$6,558
Ranked in the US
#26
0.96%
Ranked in the US
#22
Ranked in the US
#43
Montana
Ranked in the US
#25
Annual Taxes
$7,078
Ranked in the US
#19
0.74%
Ranked in the US
#33
Ranked in the US
#23
Nebraska
Ranked in the US
#15
Annual Taxes
$7,177
Ranked in the US
#17
1.54%
Ranked in the US
#7
Ranked in the US
#19
Nebraska ranks fifteenth highest tax rate in the US, with a tax burden of 11.50%. The state's tax structure includes income taxes, sales taxes, and property taxes, which support education, public safety, and infrastructure development.
Nevada
Ranked in the US
#35
Annual Taxes
$4,713
Ranked in the US
#48
0.56%
Ranked in the US
#42
Ranked in the US
#46
New Hampshire
Ranked in the US
#36
Annual Taxes
$5,025
Ranked in the US
#43
1.89%
Ranked in the US
#3
Ranked in the US
#18
New Jersey
Ranked in the US
#6
Annual Taxes
$8,330
Ranked in the US
#7
2.13%
Ranked in the US
#1
11.5%
Ranked in the US
#1
New Jersey has a tax burden of 13.20%, placing it in the sixth position for highest taxed states. The state relies on income taxes, sales taxes, and property taxes to fund education, public safety, and infrastructure projects.
New Mexico
Ranked in the US
#27
Annual Taxes
$6,370
Ranked in the US
#30
0.59%
Ranked in the US
#41
Ranked in the US
#30
New York
Ranked in the US
#1
Annual Taxes
$9,111
Ranked in the US
#4
Ranked in the US
#14
Ranked in the US
#20
New York takes the top spot for highest taxed states, with a tax burden of 15.90%, making it the state with the highest tax burden in the United States. The state imposes various taxes, including income taxes, sales taxes, and property taxes, to support its extensive public services and infrastructure.
North Carolina
Ranked in the US
#29
Annual Taxes
$6,846
Ranked in the US
#21
0.78%
Ranked in the US
#32
Ranked in the US
#45
North Dakota
Ranked in the US
#45
Annual Taxes
$4,812
Ranked in the US
#46
0.88%
Ranked in the US
#24
Ranked in the US
#42
Ohio
Ranked in the US
#28
Annual Taxes
$5,426
Ranked in the US
#41
1.52%
Ranked in the US
#10
Ranked in the US
#47
Oklahoma
Ranked in the US
#42
Annual Taxes
$6,206
Ranked in the US
#33
0.83%
Ranked in the US
#29
Ranked in the US
#44
Oregon
Ranked in the US
#21
Annual Taxes
$9,213
Ranked in the US
#3
0.91%
Ranked in the US
#23
Ranked in the US
#15
Pennsylvania
Ranked in the US
#24
Annual Taxes
$5,903
Ranked in the US
#39
1.43%
Ranked in the US
#12
Ranked in the US
#5
Rhode Island
Ranked in the US
#16
Annual Taxes
$6,552
Ranked in the US
#27
1.37%
Ranked in the US
#13
Ranked in the US
#22
South Carolina
Ranked in the US
#44
Annual Taxes
$7,613
Ranked in the US
#12
0.53%
Ranked in the US
#44
Ranked in the US
#37
South Dakota
Ranked in the US
#48
Annual Taxes
$4,310
Ranked in the US
#51
1.14%
Ranked in the US
#17
Ranked in the US
#48
Tennessee
Ranked in the US
#49
Annual Taxes
$4,483
Ranked in the US
#49
0.63%
Ranked in the US
#37
Ranked in the US
#25
Texas
Ranked in the US
#47
Annual Taxes
$4,761
Ranked in the US
#47
Ranked in the US
#6
Ranked in the US
#49
Utah
Ranked in the US
#12
Annual Taxes
$6,674
Ranked in the US
#24
0.56%
Ranked in the US
#43
Ranked in the US
#40
With a tax burden of 12.10%, Utah secures the twelfth spot for states with the highest taxes. The state's tax system includes income taxes, sales taxes, and property taxes, which support education, healthcare, and transportation infrastructure.
Vermont
Ranked in the US
#4
Annual Taxes
$6,409
Ranked in the US
#29
1.76%
Ranked in the US
#4
Ranked in the US
#9
Vermont holds the fourth spot in the state tax ranking, with a tax burden of 13.60%. The state imposes income taxes, sales taxes, and property taxes to finance education, healthcare, and environmental initiatives.
Virginia
Ranked in the US
#8
Annual Taxes
$7,951
Ranked in the US
#8
0.84%
Ranked in the US
#27
Ranked in the US
#29
Virginia holds the eighth spot for states with the highest taxes, with a tax burden of 12.50%. The state's tax system includes income taxes, sales taxes, and property taxes, which contribute to funding education, transportation, and public safety.
Washington
Ranked in the US
#23
Annual Taxes
$5,381
Ranked in the US
#42
0.84%
Ranked in the US
#28
Ranked in the US
#50
West Virginia
Ranked in the US
#32
Annual Taxes
$5,931
Ranked in the US
#38
0.53%
Ranked in the US
#45
Ranked in the US
#26
Wisconsin
Ranked in the US
#20
Annual Taxes
$6,568
Ranked in the US
#25
1.53%
Ranked in the US
#9
Ranked in the US
#14
Wyoming
Ranked in the US
#50
Annual Taxes
$4,425
Ranked in the US
#50
0.51%
Ranked in the US
#48
Ranked in the US
#51
FAQs
What state has the highest taxes ?
The state with the highest tax rate is New York, with a tax burden of 15.90%.
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