States with Lowest Taxes

In the early life of the United States, the primary method by which the government raised revenue was through tariffs; however, since the ratification of the Sixteenth Amendment in 1909 (which constitutionally allows the income tax), taxes have become the government’s chief revenue source. While there are many types of taxes levied by the various states (such as alcohol and gas taxes), there are three taxes that make up the majority of Americans’ tax burdens: income tax, sales tax, and property tax. 

The overall tax burden greatly differs from state to state, with states having high tax rates and others having low tax rates. Moreover, a few states do not levy taxes on incomes generated by individuals in their jurisdiction. Those said states often make up for the lost revenue by either reducing services or increasing other taxes. 

See for yourself which states have the lowest taxes by exploring the data in the charts.

Estimated Annual Taxes by State

Alabama - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$6,271

#22 in the US

STATE-LOCAL TAX BURDENhelp

9.8%

#10 in the US

INCOME TAX PER STATEhelp

2%

#18 in the US

CAPITAL GAINS TAX RATEhelp

5%

#22 in the US

Alaska - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$4,853

#8 in the US

STATE-LOCAL TAX BURDENhelp

4.6%

#1 in the US

CAPITAL GAINS TAX RATEhelp

0%

#1 in the US

Arizona - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$6,268

#21 in the US

STATE-LOCAL TAX BURDENhelp

9.5%

#11 in the US

INCOME TAX PER STATEhelp

2.59%

#19 in the US

CAPITAL GAINS TAX RATEhelp

4.5%

#12 in the US

Arkansas - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$6,419

#25 in the US

STATE-LOCAL TAX BURDENhelp

10.2%

#24 in the US

INCOME TAX PER STATEhelp

2%

#20 in the US

CAPITAL GAINS TAX RATEhelp

5.5%

#23 in the US

California - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$9,054

#48 in the US

STATE-LOCAL TAX BURDENhelp

13.5%

#46 in the US

INCOME TAX PER STATEhelp

1%

#8 in the US

CAPITAL GAINS TAX RATEhelp

13.3%

#51 in the US

Colorado - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$7,372

#39 in the US

STATE-LOCAL TAX BURDENhelp

9.7%

#12 in the US

INCOME TAX PER STATEhelp

4.55%

#32 in the US

CAPITAL GAINS TAX RATEhelp

4.55%

#13 in the US

Connecticut - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$7,490

#40 in the US

STATE-LOCAL TAX BURDENhelp

15.4%

#50 in the US

INCOME TAX PER STATEhelp

3%

#24 in the US

CAPITAL GAINS TAX RATEhelp

6.99%

#35 in the US

Delaware - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$7,195

#37 in the US

STATE-LOCAL TAX BURDENhelp

12.4%

#39 in the US

INCOME TAX PER STATEhelp

0%

#1 in the US

CAPITAL GAINS TAX RATEhelp

6.6%

#36 in the US

District of Columbia - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$9,839

#51 in the US

STATE-LOCAL TAX BURDENhelp

12%

#40 in the US

INCOME TAX PER STATEhelp

4%

#33 in the US

CAPITAL GAINS TAX RATEhelp

5.75%

#24 in the US

Florida - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$5,002

#9 in the US

STATE-LOCAL TAX BURDENhelp

9.1%

#13 in the US

CAPITAL GAINS TAX RATEhelp

0%

#2 in the US

Georgia - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$7,227

#38 in the US

STATE-LOCAL TAX BURDENhelp

8.9%

#4 in the US

INCOME TAX PER STATEhelp

1%

#9 in the US

CAPITAL GAINS TAX RATEhelp

5.75%

#25 in the US

Hawaii - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$9,996

#52 in the US

STATE-LOCAL TAX BURDENhelp

14.1%

#49 in the US

INCOME TAX PER STATEhelp

1.4%

#10 in the US

CAPITAL GAINS TAX RATEhelp

7.25%

#40 in the US

Idaho - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$6,872

#33 in the US

STATE-LOCAL TAX BURDENhelp

10.7%

#25 in the US

INCOME TAX PER STATEhelp

1.13%

#11 in the US

CAPITAL GAINS TAX RATEhelp

6.93%

#37 in the US

Illinois - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$7,141

#35 in the US

STATE-LOCAL TAX BURDENhelp

12.9%

#41 in the US

INCOME TAX PER STATEhelp

4.95%

#34 in the US

CAPITAL GAINS TAX RATEhelp

4.95%

#14 in the US

Indiana - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$5,643

#13 in the US

STATE-LOCAL TAX BURDENhelp

9.3%

#14 in the US

INCOME TAX PER STATEhelp

3.23%

#25 in the US

CAPITAL GAINS TAX RATEhelp

3.23%

#10 in the US

Iowa - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$6,799

#31 in the US

STATE-LOCAL TAX BURDENhelp

11.2%

#33 in the US

INCOME TAX PER STATEhelp

0.33%

#2 in the US

CAPITAL GAINS TAX RATEhelp

8.53%

#45 in the US

Kansas - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$6,695

#30 in the US

STATE-LOCAL TAX BURDENhelp

11.2%

#34 in the US

INCOME TAX PER STATEhelp

3.1%

#26 in the US

CAPITAL GAINS TAX RATEhelp

5.7%

#26 in the US

Kentucky - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$6,092

#17 in the US

STATE-LOCAL TAX BURDENhelp

9.6%

#15 in the US

INCOME TAX PER STATEhelp

5%

#40 in the US

CAPITAL GAINS TAX RATEhelp

5%

#27 in the US

Louisiana - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$6,029

#16 in the US

STATE-LOCAL TAX BURDENhelp

9.1%

#16 in the US

INCOME TAX PER STATEhelp

1.85%

#12 in the US

CAPITAL GAINS TAX RATEhelp

4.25%

#15 in the US

Maine - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$7,697

#44 in the US

STATE-LOCAL TAX BURDENhelp

12.4%

#42 in the US

INCOME TAX PER STATEhelp

5.8%

#41 in the US

CAPITAL GAINS TAX RATEhelp

7.15%

#41 in the US

Maryland - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$7,677

#43 in the US

STATE-LOCAL TAX BURDENhelp

11.3%

#35 in the US

INCOME TAX PER STATEhelp

2%

#21 in the US

CAPITAL GAINS TAX RATEhelp

5.75%

#28 in the US

Massachusetts - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$8,626

#47 in the US

STATE-LOCAL TAX BURDENhelp

11.5%

#36 in the US

INCOME TAX PER STATEhelp

5%

#42 in the US

CAPITAL GAINS TAX RATEhelp

5%

#29 in the US

Michigan - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$6,193

#19 in the US

STATE-LOCAL TAX BURDENhelp

8.6%

#5 in the US

INCOME TAX PER STATEhelp

4.25%

#35 in the US

CAPITAL GAINS TAX RATEhelp

4.25%

#16 in the US

Minnesota - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$7,656

#42 in the US

STATE-LOCAL TAX BURDENhelp

12.1%

#43 in the US

INCOME TAX PER STATEhelp

5.35%

#43 in the US

CAPITAL GAINS TAX RATEhelp

9.85%

#48 in the US

Mississippi - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$6,172

#18 in the US

STATE-LOCAL TAX BURDENhelp

9.8%

#17 in the US

INCOME TAX PER STATEhelp

0%

#3 in the US

CAPITAL GAINS TAX RATEhelp

5%

#30 in the US

Missouri - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$6,558

#27 in the US

STATE-LOCAL TAX BURDENhelp

9.3%

#18 in the US

INCOME TAX PER STATEhelp

1.5%

#13 in the US

CAPITAL GAINS TAX RATEhelp

5.4%

#31 in the US

Montana - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$7,078

#34 in the US

STATE-LOCAL TAX BURDENhelp

10.5%

#26 in the US

INCOME TAX PER STATEhelp

1%

#14 in the US

CAPITAL GAINS TAX RATEhelp

4.9%

#17 in the US

Nebraska - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$7,177

#36 in the US

STATE-LOCAL TAX BURDENhelp

11.5%

#37 in the US

INCOME TAX PER STATEhelp

2.46%

#22 in the US

CAPITAL GAINS TAX RATEhelp

6.84%

#38 in the US

Nevada - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$4,713

#5 in the US

STATE-LOCAL TAX BURDENhelp

9.6%

#19 in the US

CAPITAL GAINS TAX RATEhelp

0%

#3 in the US

New Hampshire - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$5,025

#10 in the US

STATE-LOCAL TAX BURDENhelp

9.6%

#20 in the US

CAPITAL GAINS TAX RATEhelp

0%

#4 in the US

New Jersey - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$8,330

#46 in the US

STATE-LOCAL TAX BURDENhelp

13.2%

#47 in the US

INCOME TAX PER STATEhelp

1.4%

#15 in the US

CAPITAL GAINS TAX RATEhelp

10.75%

#50 in the US

New Mexico - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$6,370

#23 in the US

STATE-LOCAL TAX BURDENhelp

10.2%

#27 in the US

INCOME TAX PER STATEhelp

1.7%

#16 in the US

CAPITAL GAINS TAX RATEhelp

5.9%

#32 in the US

New York - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$9,111

#49 in the US

STATE-LOCAL TAX BURDENhelp

15.9%

#51 in the US

INCOME TAX PER STATEhelp

4%

#36 in the US

CAPITAL GAINS TAX RATEhelp

8.82%

#46 in the US

North Carolina - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$6,846

#32 in the US

STATE-LOCAL TAX BURDENhelp

9.9%

#21 in the US

INCOME TAX PER STATEhelp

4.99%

#37 in the US

CAPITAL GAINS TAX RATEhelp

4.99%

#18 in the US

North Dakota - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$4,812

#7 in the US

STATE-LOCAL TAX BURDENhelp

8.8%

#6 in the US

INCOME TAX PER STATEhelp

1.1%

#17 in the US

CAPITAL GAINS TAX RATEhelp

2.9%

#9 in the US

Ohio - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$5,426

#12 in the US

STATE-LOCAL TAX BURDENhelp

10%

#28 in the US

INCOME TAX PER STATEhelp

0%

#4 in the US

CAPITAL GAINS TAX RATEhelp

4.8%

#19 in the US

Oklahoma - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$6,206

#20 in the US

STATE-LOCAL TAX BURDENhelp

9%

#22 in the US

INCOME TAX PER STATEhelp

0.25%

#5 in the US

CAPITAL GAINS TAX RATEhelp

4.75%

#20 in the US

Oregon - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$9,213

#50 in the US

STATE-LOCAL TAX BURDENhelp

10.8%

#29 in the US

INCOME TAX PER STATEhelp

4.75%

#38 in the US

CAPITAL GAINS TAX RATEhelp

9.9%

#49 in the US

Pennsylvania - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$5,903

#14 in the US

STATE-LOCAL TAX BURDENhelp

10.6%

#30 in the US

INCOME TAX PER STATEhelp

3.07%

#27 in the US

CAPITAL GAINS TAX RATEhelp

3.07%

#11 in the US

Rhode Island - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$6,552

#26 in the US

STATE-LOCAL TAX BURDENhelp

11.4%

#38 in the US

INCOME TAX PER STATEhelp

3.75%

#28 in the US

CAPITAL GAINS TAX RATEhelp

5.99%

#33 in the US

South Carolina - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$7,613

#41 in the US

STATE-LOCAL TAX BURDENhelp

8.9%

#7 in the US

INCOME TAX PER STATEhelp

0%

#6 in the US

CAPITAL GAINS TAX RATEhelp

7%

#42 in the US

South Dakota - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$4,310

#2 in the US

STATE-LOCAL TAX BURDENhelp

8.4%

#8 in the US

CAPITAL GAINS TAX RATEhelp

0%

#5 in the US

Tennessee - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$4,483

#4 in the US

STATE-LOCAL TAX BURDENhelp

7.6%

#2 in the US

CAPITAL GAINS TAX RATEhelp

0%

#6 in the US

Texas - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$4,761

#6 in the US

STATE-LOCAL TAX BURDENhelp

8.6%

#9 in the US

CAPITAL GAINS TAX RATEhelp

0%

#7 in the US

Utah - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$6,674

#29 in the US

STATE-LOCAL TAX BURDENhelp

12.1%

#44 in the US

INCOME TAX PER STATEhelp

4.95%

#39 in the US

CAPITAL GAINS TAX RATEhelp

4.95%

#21 in the US

Vermont - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$6,409

#24 in the US

STATE-LOCAL TAX BURDENhelp

13.6%

#48 in the US

INCOME TAX PER STATEhelp

3.35%

#29 in the US

CAPITAL GAINS TAX RATEhelp

8.75%

#47 in the US

Virginia - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$7,951

#45 in the US

STATE-LOCAL TAX BURDENhelp

12.5%

#45 in the US

INCOME TAX PER STATEhelp

2%

#23 in the US

CAPITAL GAINS TAX RATEhelp

5.75%

#34 in the US

Washington - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$5,381

#11 in the US

STATE-LOCAL TAX BURDENhelp

10.7%

#31 in the US

CAPITAL GAINS TAX RATEhelp

7%

#43 in the US

West Virginia - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$5,931

#15 in the US

STATE-LOCAL TAX BURDENhelp

9.8%

#23 in the US

INCOME TAX PER STATEhelp

3%

#30 in the US

CAPITAL GAINS TAX RATEhelp

6.5%

#39 in the US

Wisconsin - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$6,568

#28 in the US

STATE-LOCAL TAX BURDENhelp

10.9%

#32 in the US

INCOME TAX PER STATEhelp

3.54%

#31 in the US

CAPITAL GAINS TAX RATEhelp

7.65%

#44 in the US

Wyoming - Estimated Annual Taxes

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ESTIMATED ANNUAL TAXEShelp

$4,425

#3 in the US

STATE-LOCAL TAX BURDENhelp

7.5%

#3 in the US

CAPITAL GAINS TAX RATEhelp

0%

#8 in the US

-

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help

$0

#1 in the US

help

0%

#7 in the US