States with Lowest Taxes

Map

Table

Introduction

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.

#StateAverage Annual TaxesState-Local Tax BurdenIncome Tax RateCapital Gains Tax Rate
1South Dakota$4,3108.4%0%0%
2Wyoming$4,4257.5%0%0%
3Tennessee$4,4837.6%0%0%
4Nevada$4,7139.6%0%0%
5Texas$4,7618.6%0%0%
6North Dakota$4,8128.8%1.1%2.9%
7Alaska$4,8534.6%0%0%
8Florida$5,0029.1%0%0%
9New Hampshire$5,0259.6%5%0%
10Washington$5,38110.7%7%7%
11Ohio$5,42610%2.77%4.8%
12Indiana$5,6439.3%3.23%3.23%
13Pennsylvania$5,90310.6%3.07%3.07%
14West Virginia$5,9319.8%3%6.5%
15Louisiana$6,0299.1%1.85%4.25%
16Kentucky$6,0929.6%5%5%
17Mississippi$6,1729.8%4%5%
18Michigan$6,1938.6%4.25%4.25%
19Oklahoma$6,2069%0.25%4.75%
20Arizona$6,2689.5%2.59%4.5%
21Alabama$6,2719.8%2%5%
22New Mexico$6,37010.2%1.7%5.9%
23Vermont$6,40913.6%3.35%8.75%
24Arkansas$6,41910.2%2%5.5%
25Rhode Island$6,55211.4%3.75%5.99%
26Missouri$6,5589.3%1.5%5.4%
27Wisconsin$6,56810.9%3.54%7.65%
28Utah$6,67412.1%4.95%4.95%
29Kansas$6,69511.2%3.1%5.7%
30Iowa$6,79911.2%0.33%8.53%
31North Carolina$6,8469.9%4.99%4.99%
32Idaho$6,87210.7%1%6.93%
33Montana$7,07810.5%1%4.9%
34Illinois$7,14112.9%4.95%4.95%
35Nebraska$7,17711.5%2.46%6.84%
36Delaware$7,19512.4%2.2%6.6%
37Georgia$7,2278.9%1%5.75%
38Colorado$7,3729.7%4.55%4.55%
39Connecticut$7,49015.4%3%6.99%
40South Carolina$7,6138.9%0%7%
41Minnesota$7,65612.1%5.35%9.85%
42Maryland$7,67711.3%2%5.75%
43Maine$7,69712.4%5.8%7.15%
44Virginia$7,95112.5%2%5.75%
45New Jersey$8,33013.2%1.4%10.75%
46Massachusetts$8,62611.5%5%5%
47California$9,05413.5%1%13.3%
48New York$9,11115.9%4%8.82%
49Oregon$9,21310.8%4.75%9.9%
50District of Columbia$9,83912%4%5.75%
51Hawaii$9,99614.1%1.4%7.25%

Average Annual Taxes by State

Alabama

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Average Annual Taxes

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$6,271

Ranked in the US

#21

Ranked in the US

#20

Ranked in the US

#21

Ranked in the US

#22

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Alaska

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$4,853

Ranked in the US

#7

Ranked in the US

#1

Ranked in the US

#1

Ranked in the US

#1

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Arizona

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$6,268

Ranked in the US

#20

Ranked in the US

#15

Ranked in the US

#27

Ranked in the US

#14

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Arkansas

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$6,419

Ranked in the US

#24

Ranked in the US

#25

Ranked in the US

#22

Ranked in the US

#27

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

California

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$9,054

Ranked in the US

#47

Ranked in the US

#47

Ranked in the US

#11

Ranked in the US

#51

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Colorado

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$7,372

Ranked in the US

#38

Ranked in the US

#19

Ranked in the US

#41

Ranked in the US

#15

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Connecticut

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$7,490

Ranked in the US

#39

Ranked in the US

#50

Ranked in the US

#29

Ranked in the US

#39

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Delaware

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$7,195

Ranked in the US

#36

Ranked in the US

#42

Ranked in the US

#25

Ranked in the US

#36

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

District of Columbia

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$9,839

Ranked in the US

#50

Ranked in the US

#39

Ranked in the US

#37

Ranked in the US

#29

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Florida

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$5,002

Ranked in the US

#8

Ranked in the US

#11

Ranked in the US

#2

Ranked in the US

#2

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Georgia

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$7,227

Ranked in the US

#37

Ranked in the US

#8

Ranked in the US

#12

Ranked in the US

#30

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Hawaii

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$9,996

Ranked in the US

#51

Ranked in the US

#49

Ranked in the US

#16

Ranked in the US

#43

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Idaho

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$6,872

Ranked in the US

#32

Ranked in the US

#29

Ranked in the US

#13

Ranked in the US

#38

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Illinois

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$7,141

Ranked in the US

#34

Ranked in the US

#45

Ranked in the US

#43

Ranked in the US

#19

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Indiana

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$5,643

Ranked in the US

#12

Ranked in the US

#13

Ranked in the US

#33

Ranked in the US

#11

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Iowa

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$6,799

Ranked in the US

#30

Ranked in the US

#33

Ranked in the US

#10

Ranked in the US

#45

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Kansas

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$6,695

Ranked in the US

#29

Ranked in the US

#34

Ranked in the US

#32

Ranked in the US

#28

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Kentucky

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$6,092

Ranked in the US

#16

Ranked in the US

#16

Ranked in the US

#46

Ranked in the US

#23

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Louisiana

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$6,029

Ranked in the US

#15

Ranked in the US

#12

Ranked in the US

#20

Ranked in the US

#12

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Maine

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$7,697

Ranked in the US

#43

Ranked in the US

#43

Ranked in the US

#50

Ranked in the US

#42

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Maryland

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$7,677

Ranked in the US

#42

Ranked in the US

#35

Ranked in the US

#23

Ranked in the US

#31

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Massachusetts

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$8,626

Ranked in the US

#46

Ranked in the US

#37

Ranked in the US

#47

Ranked in the US

#24

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Michigan

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$6,193

Ranked in the US

#18

Ranked in the US

#5

Ranked in the US

#40

Ranked in the US

#13

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Minnesota

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$7,656

Ranked in the US

#41

Ranked in the US

#40

Ranked in the US

#49

Ranked in the US

#48

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Mississippi

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$6,172

Ranked in the US

#17

Ranked in the US

#21

Ranked in the US

#38

Ranked in the US

#25

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Missouri

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$6,558

Ranked in the US

#26

Ranked in the US

#14

Ranked in the US

#18

Ranked in the US

#26

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Montana

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$7,078

Ranked in the US

#33

Ranked in the US

#27

Ranked in the US

#14

Ranked in the US

#18

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Nebraska

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$7,177

Ranked in the US

#35

Ranked in the US

#38

Ranked in the US

#26

Ranked in the US

#37

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Nevada

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$4,713

Ranked in the US

#4

Ranked in the US

#17

Ranked in the US

#3

Ranked in the US

#3

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

New Hampshire

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$5,025

Ranked in the US

#9

Ranked in the US

#18

Ranked in the US

#48

Ranked in the US

#4

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

New Jersey

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$8,330

Ranked in the US

#45

Ranked in the US

#46

Ranked in the US

#17

Ranked in the US

#50

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

New Mexico

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$6,370

Ranked in the US

#22

Ranked in the US

#26

Ranked in the US

#19

Ranked in the US

#33

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

New York

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$9,111

Ranked in the US

#48

Ranked in the US

#51

Ranked in the US

#39

Ranked in the US

#47

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

North Carolina

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$6,846

Ranked in the US

#31

Ranked in the US

#23

Ranked in the US

#45

Ranked in the US

#21

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

North Dakota

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$4,812

Ranked in the US

#6

Ranked in the US

#7

Ranked in the US

#15

Ranked in the US

#9

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Ohio

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$5,426

Ranked in the US

#11

Ranked in the US

#24

Ranked in the US

#28

Ranked in the US

#17

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Oklahoma

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$6,206

Ranked in the US

#19

Ranked in the US

#10

Ranked in the US

#9

Ranked in the US

#16

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Oregon

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$9,213

Ranked in the US

#49

Ranked in the US

#31

Ranked in the US

#42

Ranked in the US

#49

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Pennsylvania

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$5,903

Ranked in the US

#13

Ranked in the US

#28

Ranked in the US

#31

Ranked in the US

#10

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Rhode Island

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$6,552

Ranked in the US

#25

Ranked in the US

#36

Ranked in the US

#36

Ranked in the US

#34

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

South Carolina

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$7,613

Ranked in the US

#40

Ranked in the US

#9

Ranked in the US

#4

Ranked in the US

#40

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

South Dakota

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$4,310

Ranked in the US

#1

Ranked in the US

#4

Ranked in the US

#5

Ranked in the US

#5

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Tennessee

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$4,483

Ranked in the US

#3

Ranked in the US

#3

Ranked in the US

#6

Ranked in the US

#6

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Texas

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$4,761

Ranked in the US

#5

Ranked in the US

#6

Ranked in the US

#7

Ranked in the US

#7

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Utah

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$6,674

Ranked in the US

#28

Ranked in the US

#41

Ranked in the US

#44

Ranked in the US

#20

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Vermont

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$6,409

Ranked in the US

#23

Ranked in the US

#48

Ranked in the US

#34

Ranked in the US

#46

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Virginia

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$7,951

Ranked in the US

#44

Ranked in the US

#44

Ranked in the US

#24

Ranked in the US

#32

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Washington

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$5,381

Ranked in the US

#10

Ranked in the US

#30

Ranked in the US

#51

Ranked in the US

#41

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

West Virginia

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$5,931

Ranked in the US

#14

Ranked in the US

#22

Ranked in the US

#30

Ranked in the US

#35

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Wisconsin

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$6,568

Ranked in the US

#27

Ranked in the US

#32

Ranked in the US

#35

Ranked in the US

#44

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate

Wyoming

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$4,425

Ranked in the US

#2

Ranked in the US

#2

Ranked in the US

#8

Ranked in the US

#8

Average Annual Taxes

State-Local Tax Burden

Income Tax Rate

Capital Gains Tax Rate