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.
| # | State | Average Annual Taxes | State-Local Tax Burden | Income Tax Rate | Capital Gains Tax Rate |
|---|---|---|---|---|---|
| 1 | South Dakota | $4,310 | 8.4% | 0% | 0% |
| 2 | Wyoming | $4,425 | 7.5% | 0% | 0% |
| 3 | Tennessee | $4,483 | 7.6% | 0% | 0% |
| 4 | Nevada | $4,713 | 9.6% | 0% | 0% |
| 5 | Texas | $4,761 | 8.6% | 0% | 0% |
| 6 | North Dakota | $4,812 | 8.8% | 1.1% | 2.9% |
| 7 | Alaska | $4,853 | 4.6% | 0% | 0% |
| 8 | Florida | $5,002 | 9.1% | 0% | 0% |
| 9 | New Hampshire | $5,025 | 9.6% | 5% | 0% |
| 10 | Washington | $5,381 | 10.7% | 7% | 7% |
| 11 | Ohio | $5,426 | 10% | 2.77% | 4.8% |
| 12 | Indiana | $5,643 | 9.3% | 3.23% | 3.23% |
| 13 | Pennsylvania | $5,903 | 10.6% | 3.07% | 3.07% |
| 14 | West Virginia | $5,931 | 9.8% | 3% | 6.5% |
| 15 | Louisiana | $6,029 | 9.1% | 1.85% | 4.25% |
| 16 | Kentucky | $6,092 | 9.6% | 5% | 5% |
| 17 | Mississippi | $6,172 | 9.8% | 4% | 5% |
| 18 | Michigan | $6,193 | 8.6% | 4.25% | 4.25% |
| 19 | Oklahoma | $6,206 | 9% | 0.25% | 4.75% |
| 20 | Arizona | $6,268 | 9.5% | 2.59% | 4.5% |
| 21 | Alabama | $6,271 | 9.8% | 2% | 5% |
| 22 | New Mexico | $6,370 | 10.2% | 1.7% | 5.9% |
| 23 | Vermont | $6,409 | 13.6% | 3.35% | 8.75% |
| 24 | Arkansas | $6,419 | 10.2% | 2% | 5.5% |
| 25 | Rhode Island | $6,552 | 11.4% | 3.75% | 5.99% |
| 26 | Missouri | $6,558 | 9.3% | 1.5% | 5.4% |
| 27 | Wisconsin | $6,568 | 10.9% | 3.54% | 7.65% |
| 28 | Utah | $6,674 | 12.1% | 4.95% | 4.95% |
| 29 | Kansas | $6,695 | 11.2% | 3.1% | 5.7% |
| 30 | Iowa | $6,799 | 11.2% | 0.33% | 8.53% |
| 31 | North Carolina | $6,846 | 9.9% | 4.99% | 4.99% |
| 32 | Idaho | $6,872 | 10.7% | 1% | 6.93% |
| 33 | Montana | $7,078 | 10.5% | 1% | 4.9% |
| 34 | Illinois | $7,141 | 12.9% | 4.95% | 4.95% |
| 35 | Nebraska | $7,177 | 11.5% | 2.46% | 6.84% |
| 36 | Delaware | $7,195 | 12.4% | 2.2% | 6.6% |
| 37 | Georgia | $7,227 | 8.9% | 1% | 5.75% |
| 38 | Colorado | $7,372 | 9.7% | 4.55% | 4.55% |
| 39 | Connecticut | $7,490 | 15.4% | 3% | 6.99% |
| 40 | South Carolina | $7,613 | 8.9% | 0% | 7% |
| 41 | Minnesota | $7,656 | 12.1% | 5.35% | 9.85% |
| 42 | Maryland | $7,677 | 11.3% | 2% | 5.75% |
| 43 | Maine | $7,697 | 12.4% | 5.8% | 7.15% |
| 44 | Virginia | $7,951 | 12.5% | 2% | 5.75% |
| 45 | New Jersey | $8,330 | 13.2% | 1.4% | 10.75% |
| 46 | Massachusetts | $8,626 | 11.5% | 5% | 5% |
| 47 | California | $9,054 | 13.5% | 1% | 13.3% |
| 48 | New York | $9,111 | 15.9% | 4% | 8.82% |
| 49 | Oregon | $9,213 | 10.8% | 4.75% | 9.9% |
| 50 | District of Columbia | $9,839 | 12% | 4% | 5.75% |
| 51 | Hawaii | $9,996 | 14.1% | 1.4% | 7.25% |
Average Annual Taxes by State
Alabama
Average Annual Taxes
$6,271
Ranked in the US
#21
Ranked in the US
#20
Ranked in the US
#21
Ranked in the US
#22
Alaska
Average Annual Taxes
$4,853
Ranked in the US
#7
Ranked in the US
#1
Ranked in the US
#1
Ranked in the US
#1
Arizona
Average Annual Taxes
$6,268
Ranked in the US
#20
Ranked in the US
#15
2.59%
Ranked in the US
#27
Ranked in the US
#14
Arkansas
Average Annual Taxes
$6,419
Ranked in the US
#24
Ranked in the US
#25
Ranked in the US
#22
Ranked in the US
#27
California
Average Annual Taxes
$9,054
Ranked in the US
#47
Ranked in the US
#47
Ranked in the US
#11
Ranked in the US
#51
Colorado
Average Annual Taxes
$7,372
Ranked in the US
#38
Ranked in the US
#19
4.55%
Ranked in the US
#41
Ranked in the US
#15
Connecticut
Average Annual Taxes
$7,490
Ranked in the US
#39
Ranked in the US
#50
Ranked in the US
#29
Ranked in the US
#39
Delaware
Average Annual Taxes
$7,195
Ranked in the US
#36
Ranked in the US
#42
2.2%
Ranked in the US
#25
Ranked in the US
#36
District of Columbia
Average Annual Taxes
$9,839
Ranked in the US
#50
Ranked in the US
#39
Ranked in the US
#37
Ranked in the US
#29
Florida
Average Annual Taxes
$5,002
Ranked in the US
#8
Ranked in the US
#11
Ranked in the US
#2
Ranked in the US
#2
Georgia
Average Annual Taxes
$7,227
Ranked in the US
#37
Ranked in the US
#8
Ranked in the US
#12
Ranked in the US
#30
Hawaii
Average Annual Taxes
$9,996
Ranked in the US
#51
Ranked in the US
#49
1.4%
Ranked in the US
#16
Ranked in the US
#43
Idaho
Average Annual Taxes
$6,872
Ranked in the US
#32
Ranked in the US
#29
Ranked in the US
#13
Ranked in the US
#38
Illinois
Average Annual Taxes
$7,141
Ranked in the US
#34
Ranked in the US
#45
4.95%
Ranked in the US
#43
Ranked in the US
#19
Indiana
Average Annual Taxes
$5,643
Ranked in the US
#12
Ranked in the US
#13
3.23%
Ranked in the US
#33
Ranked in the US
#11
Iowa
Average Annual Taxes
$6,799
Ranked in the US
#30
Ranked in the US
#33
0.33%
Ranked in the US
#10
Ranked in the US
#45
Kansas
Average Annual Taxes
$6,695
Ranked in the US
#29
Ranked in the US
#34
3.1%
Ranked in the US
#32
Ranked in the US
#28
Kentucky
Average Annual Taxes
$6,092
Ranked in the US
#16
Ranked in the US
#16
Ranked in the US
#46
Ranked in the US
#23
Louisiana
Average Annual Taxes
$6,029
Ranked in the US
#15
Ranked in the US
#12
1.85%
Ranked in the US
#20
Ranked in the US
#12
Maine
Average Annual Taxes
$7,697
Ranked in the US
#43
Ranked in the US
#43
5.8%
Ranked in the US
#50
Ranked in the US
#42
Maryland
Average Annual Taxes
$7,677
Ranked in the US
#42
Ranked in the US
#35
Ranked in the US
#23
Ranked in the US
#31
Massachusetts
Average Annual Taxes
$8,626
Ranked in the US
#46
Ranked in the US
#37
Ranked in the US
#47
Ranked in the US
#24
Michigan
Average Annual Taxes
$6,193
Ranked in the US
#18
Ranked in the US
#5
4.25%
Ranked in the US
#40
Ranked in the US
#13
Minnesota
Average Annual Taxes
$7,656
Ranked in the US
#41
Ranked in the US
#40
5.35%
Ranked in the US
#49
Ranked in the US
#48
Mississippi
Average Annual Taxes
$6,172
Ranked in the US
#17
Ranked in the US
#21
Ranked in the US
#38
Ranked in the US
#25
Missouri
Average Annual Taxes
$6,558
Ranked in the US
#26
Ranked in the US
#14
1.5%
Ranked in the US
#18
Ranked in the US
#26
Montana
Average Annual Taxes
$7,078
Ranked in the US
#33
Ranked in the US
#27
Ranked in the US
#14
Ranked in the US
#18
Nebraska
Average Annual Taxes
$7,177
Ranked in the US
#35
Ranked in the US
#38
2.46%
Ranked in the US
#26
Ranked in the US
#37
Nevada
Average Annual Taxes
$4,713
Ranked in the US
#4
Ranked in the US
#17
Ranked in the US
#3
Ranked in the US
#3
New Hampshire
Average Annual Taxes
$5,025
Ranked in the US
#9
Ranked in the US
#18
Ranked in the US
#48
Ranked in the US
#4
New Jersey
Average Annual Taxes
$8,330
Ranked in the US
#45
Ranked in the US
#46
1.4%
Ranked in the US
#17
10.75%
Ranked in the US
#50
New Mexico
Average Annual Taxes
$6,370
Ranked in the US
#22
Ranked in the US
#26
1.7%
Ranked in the US
#19
Ranked in the US
#33
New York
Average Annual Taxes
$9,111
Ranked in the US
#48
Ranked in the US
#51
Ranked in the US
#39
Ranked in the US
#47
North Carolina
Average Annual Taxes
$6,846
Ranked in the US
#31
Ranked in the US
#23
4.99%
Ranked in the US
#45
Ranked in the US
#21
North Dakota
Average Annual Taxes
$4,812
Ranked in the US
#6
Ranked in the US
#7
1.1%
Ranked in the US
#15
Ranked in the US
#9
Ohio
Average Annual Taxes
$5,426
Ranked in the US
#11
Ranked in the US
#24
2.77%
Ranked in the US
#28
Ranked in the US
#17
Oklahoma
Average Annual Taxes
$6,206
Ranked in the US
#19
Ranked in the US
#10
0.25%
Ranked in the US
#9
Ranked in the US
#16
Oregon
Average Annual Taxes
$9,213
Ranked in the US
#49
Ranked in the US
#31
4.75%
Ranked in the US
#42
Ranked in the US
#49
Pennsylvania
Average Annual Taxes
$5,903
Ranked in the US
#13
Ranked in the US
#28
3.07%
Ranked in the US
#31
Ranked in the US
#10
Rhode Island
Average Annual Taxes
$6,552
Ranked in the US
#25
Ranked in the US
#36
3.75%
Ranked in the US
#36
Ranked in the US
#34
South Carolina
Average Annual Taxes
$7,613
Ranked in the US
#40
Ranked in the US
#9
Ranked in the US
#4
Ranked in the US
#40
South Dakota
Average Annual Taxes
$4,310
Ranked in the US
#1
Ranked in the US
#4
Ranked in the US
#5
Ranked in the US
#5
Tennessee
Average Annual Taxes
$4,483
Ranked in the US
#3
Ranked in the US
#3
Ranked in the US
#6
Ranked in the US
#6
Texas
Average Annual Taxes
$4,761
Ranked in the US
#5
Ranked in the US
#6
Ranked in the US
#7
Ranked in the US
#7
Utah
Average Annual Taxes
$6,674
Ranked in the US
#28
Ranked in the US
#41
4.95%
Ranked in the US
#44
Ranked in the US
#20
Vermont
Average Annual Taxes
$6,409
Ranked in the US
#23
Ranked in the US
#48
3.35%
Ranked in the US
#34
Ranked in the US
#46
Virginia
Average Annual Taxes
$7,951
Ranked in the US
#44
Ranked in the US
#44
Ranked in the US
#24
Ranked in the US
#32
Washington
Average Annual Taxes
$5,381
Ranked in the US
#10
Ranked in the US
#30
Ranked in the US
#51
Ranked in the US
#41
West Virginia
Average Annual Taxes
$5,931
Ranked in the US
#14
Ranked in the US
#22
Ranked in the US
#30
Ranked in the US
#35
Wisconsin
Average Annual Taxes
$6,568
Ranked in the US
#27
Ranked in the US
#32
3.54%
Ranked in the US
#35
Ranked in the US
#44
Wyoming
Average Annual Taxes
$4,425
Ranked in the US
#2
Ranked in the US
#2
Ranked in the US
#8
Ranked in the US
#8