Tax Burden by State

Map

Table

Introduction

Tax burden refers to the total amount of taxes paid by individuals and businesses in a particular jurisdiction. It encompasses various taxes, including income taxes, sales taxes, property taxes, and other state and local levies. The tax burden can vary significantly from state to state due to variations in tax policies, rates, exemptions, and the overall structure of the tax system.

The differences in tax burden among states can have a profound impact on the economic well-being of individuals and the competitiveness of businesses. States with high tax burdens may face challenges in attracting and retaining businesses and residents, while states with lower tax burdens can provide a more favorable environment for economic growth and prosperity.

Factors that contribute to variations in tax burden include the reliance on different tax revenue sources, such as income taxes versus sales taxes, the progressivity or regressivity of tax rates, and the presence or absence of certain tax incentives or deductions. Additionally, differences in the cost of living, government spending priorities, and demographic factors can also influence the overall tax burden experienced by individuals and businesses.

Total Tax Burden by State

#StateState-Local Tax BurdenAnnual TaxesProperty Tax RateCorporate Tax Rate
1New York15.9%$9,1111.3%7.3%
2Connecticut15.4%$7,4901.73%7.5%
3Hawaii14.1%$9,9960.31%6.4%
4Vermont13.6%$6,4091.76%8.5%
5California13.5%$9,0540.7%8.8%
6New Jersey13.2%$8,3302.13%11.5%
7Illinois12.9%$7,1411.97%9.5%
8Virginia12.5%$7,9510.84%6%
9Delaware12.4%$7,1950.59%8.7%
10Maine12.4%$7,6971.2%8.9%
11Minnesota12.1%$7,6561.05%9.8%
12Utah12.1%$6,6740.56%4.9%
13District of Columbia12%$9,8398.3%
14Massachusetts11.5%$8,6261.08%8%
15Nebraska11.5%$7,1771.54%7.3%
16Rhode Island11.4%$6,5521.37%7%
17Maryland11.3%$7,6771.01%8.3%
18Iowa11.2%$6,7991.43%8.4%
19Kansas11.2%$6,6951.28%7%
20Wisconsin10.9%$6,5681.53%7.9%
21Oregon10.8%$9,2130.91%7.6%
22Idaho10.7%$6,8720.65%5.8%
23Washington10.7%$5,3810.84%0%
24Pennsylvania10.6%$5,9031.43%9%
25Montana10.5%$7,0780.74%6.8%
26Arkansas10.2%$6,4190.61%5.3%
27New Mexico10.2%$6,3700.59%5.9%
28Ohio10%$5,4261.52%0%
29North Carolina9.9%$6,8460.78%2.5%
30Alabama9.8%$6,2710.37%6.5%
31Mississippi9.8%$6,1720.63%5%
32West Virginia9.8%$5,9310.53%6.5%
33Colorado9.7%$7,3720.52%4.6%
34Kentucky9.6%$6,0920.78%5%
35Nevada9.6%$4,7130.56%0%
36New Hampshire9.6%$5,0251.89%7.5%
37Arizona9.5%$6,2680.6%4.9%
38Indiana9.3%$5,6430.81%4.9%
39Missouri9.3%$6,5580.96%4%
40Florida9.1%$5,0020.86%5.5%
41Louisiana9.1%$6,0290.51%7.5%
42Oklahoma9%$6,2060.83%4%
43Georgia8.9%$7,2270.87%5.8%
44South Carolina8.9%$7,6130.53%5%
45North Dakota8.8%$4,8120.88%4.3%
46Michigan8.6%$6,1931.53%6%
47Texas8.6%$4,7611.6%0%
48South Dakota8.4%$4,3101.14%0%
49Tennessee7.6%$4,4830.63%6.5%
50Wyoming7.5%$4,4250.51%0%
51Alaska4.6%$4,8530.98%9.4%

Lowest Tax Burden States

The ten states with the lowest tax burdens are Alaska, Wyoming, Tennessee, South Dakota, Michigan, Texas, North Dakota, Georgia, South Carolina, and Oklahoma. Alaska holds the first position with a state-local tax burden of 4.60%, making it the state with the lowest tax burden in the nation. Wyoming closely follows in second place with a tax burden of 7.50%. Tennessee and South Dakota share the third and fourth positions with tax burdens of 7.60% and 8.40%, respectively. Michigan and Texas tie for the fifth and sixth spots, both with a tax burden of 8.60%. North Dakota, Georgia, South Carolina, and Oklahoma complete the list with tax burdens of 8.80%, 8.90%, 8.90%, and 9%, respectively.

The ten lowest tax burden states are:

1. Alaska – 4.60%
2. Wyoming – 7.50%
3. Tennessee – 7.60%
4. South Dakota – 8.40%
5. Michigan – 8.60%
6. Texas – 8.60%
7. North Dakota – 8.80%
8. Georgia – 8.90%
9. South Carolina – 8.90%
10. Oklahoma – 9%

States With Highest Tax Burden

The ten states with the highest tax burdens are New York, Connecticut, Hawaii, Vermont, California, New Jersey, Illinois, Virginia, Delaware, and Maine. Among the states with the highest tax burden, New York tops the list with a state-local tax burden at 15.90%. Following closely is Connecticut at 15.40%, while Hawaii ranks third with a tax burden of 14.10%. Vermont takes the fourth spot with a tax burden of 13.60%, while California closely trails at 13.50%. New Jersey follows at the sixth position with a tax burden of 13.20%. Illinois, with a tax burden of 12.90%, is seventh on the list, while Virginia ranks eighth with a tax burden of 12.50%. Delaware and Maine tie for the ninth and tenth positions, both with a tax burden of 12.40%. These states exhibit the highest tax burdens in the country, and individuals and businesses in these states face significant tax obligations.

The ten highest tax burden states 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%

Overall Tax Burden by State

Alabama

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Ranked in the US

#30

Annual Taxes

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$6,271

Ranked in the US

#31

Ranked in the US

#49

Ranked in the US

#24

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Alaska

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Ranked in the US

#51

Annual Taxes

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$4,853

Ranked in the US

#45

Ranked in the US

#21

Ranked in the US

#4

Topping the list with the lowest state-local tax burden is Alaska, with a tax burden at 4.60%. Known for its abundance of natural resources, Alaska relies heavily on revenue from oil and gas, allowing it to impose significantly lower taxes on its residents and businesses compared to other states.

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Arizona

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Ranked in the US

#37

Annual Taxes

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$6,268

Ranked in the US

#32

Ranked in the US

#39

Ranked in the US

#38

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Arkansas

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Ranked in the US

#26

Annual Taxes

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$6,419

Ranked in the US

#28

Ranked in the US

#38

Ranked in the US

#34

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

California

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Ranked in the US

#5

Annual Taxes

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$9,054

Ranked in the US

#5

Ranked in the US

#34

Ranked in the US

#7

California carries a tax burden of 13.50%, making it the fifth state with the highest tax burden in the US.The state imposes income taxes on individuals and corporations, alongside sales and property taxes. California's tax policies aim to fund a wide range of public services, including education, healthcare, and infrastructure, while supporting economic innovation.

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Colorado

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Ranked in the US

#33

Annual Taxes

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$7,372

Ranked in the US

#14

Ranked in the US

#46

Ranked in the US

#41

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Connecticut

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Ranked in the US

#2

Annual Taxes

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$7,490

Ranked in the US

#13

Ranked in the US

#5

Ranked in the US

#16

Connecticut has the second highest tax burden in the US, with a tax burden at 15.40%. The state imposes income taxes on individuals and corporations, alongside sales and property taxes. Connecticut's tax structure aims to generate revenue for public services, education, infrastructure, and healthcare while addressing budgetary challenges.

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Delaware

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Ranked in the US

#9

Annual Taxes

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$7,195

Ranked in the US

#16

Ranked in the US

#40

Ranked in the US

#8

Delaware carries a tax burden of 12.40%, making it the tenth state with the highest tax burden in the US. The state does not levy a sales tax but imposes income taxes on individuals and corporations. Delaware's tax structure aims to attract businesses through its favorable corporate tax environment while generating revenue for public services.

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

District of Columbia

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Ranked in the US

#13

Annual Taxes

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$9,839

Ranked in the US

#2

Ranked in the US

#11

State-Local Tax Burden

Annual Taxes

Corporate Tax Rate

Florida

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Ranked in the US

#40

Annual Taxes

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$5,002

Ranked in the US

#44

Ranked in the US

#26

Ranked in the US

#33

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Georgia

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Ranked in the US

#43

Annual Taxes

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$7,227

Ranked in the US

#15

Ranked in the US

#25

Ranked in the US

#31

With a tax burden just shy of 8.90%, Georgia secures the eighth position for states with the lowest tax burden. Georgia imposes income taxes on residents and corporations, along with sales and property taxes. The state's balanced tax system seeks to support economic growth while funding essential services.

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Hawaii

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Ranked in the US

#3

Annual Taxes

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$9,996

Ranked in the US

#1

Ranked in the US

#50

Ranked in the US

#27

Hawaii carries a tax burden of 14.10%, making it the third state with the highest tax burden in the US. The state imposes income taxes on individuals and businesses, alongside sales and property taxes. Hawaii's tax policies aim to fund public services, education, healthcare, and tourism-related initiatives.

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Idaho

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Ranked in the US

#22

Annual Taxes

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$6,872

Ranked in the US

#20

Ranked in the US

#35

Ranked in the US

#32

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Illinois

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Ranked in the US

#7

Annual Taxes

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$7,141

Ranked in the US

#18

Ranked in the US

#2

Ranked in the US

#3

Illinois carries a tax burden of 12.90%, making it the seventh state with the highest tax burden in the US. The state imposes income taxes on individuals and corporations, alongside sales and property taxes. Illinois' tax policies aim to fund public services, education, and infrastructure while addressing budgetary challenges.

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Indiana

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Ranked in the US

#38

Annual Taxes

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$5,643

Ranked in the US

#40

Ranked in the US

#30

Ranked in the US

#39

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Iowa

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Ranked in the US

#18

Annual Taxes

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$6,799

Ranked in the US

#22

Ranked in the US

#11

Ranked in the US

#10

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Kansas

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Ranked in the US

#19

Annual Taxes

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$6,695

Ranked in the US

#23

Ranked in the US

#15

Ranked in the US

#21

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Kentucky

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Ranked in the US

#34

Annual Taxes

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$6,092

Ranked in the US

#36

Ranked in the US

#31

Ranked in the US

#35

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Louisiana

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Ranked in the US

#41

Annual Taxes

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$6,029

Ranked in the US

#37

Ranked in the US

#47

Ranked in the US

#17

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Maine

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Ranked in the US

#10

Annual Taxes

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$7,697

Ranked in the US

#9

Ranked in the US

#16

Ranked in the US

#6

Maine carries a tax burden of 12.40%, making it the ninth state with the highest tax burden in the US. The state imposes income taxes on residents and businesses, alongside sales and property taxes. Maine's tax policies aim to fund public services, healthcare, education, and infrastructure while supporting economic development.

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Maryland

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Ranked in the US

#17

Annual Taxes

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$7,677

Ranked in the US

#10

Ranked in the US

#20

Ranked in the US

#12

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Massachusetts

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Ranked in the US

#14

Annual Taxes

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$8,626

Ranked in the US

#6

Ranked in the US

#18

Ranked in the US

#13

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Michigan

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Ranked in the US

#46

Annual Taxes

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$6,193

Ranked in the US

#34

Ranked in the US

#8

Ranked in the US

#28

Michigan secures the fifth position for states with the lowest tax burdens, with a moderate state-local tax burden at 8.60%. The state relies on various taxes, including income, sales, and property taxes. While not the lowest tax burden, Michigan's tax policies aim to strike a balance between revenue generation and supporting economic growth.

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Minnesota

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Ranked in the US

#11

Annual Taxes

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$7,656

Ranked in the US

#11

Ranked in the US

#19

Ranked in the US

#2

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Mississippi

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Ranked in the US

#31

Annual Taxes

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$6,172

Ranked in the US

#35

Ranked in the US

#36

Ranked in the US

#36

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Missouri

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Ranked in the US

#39

Annual Taxes

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$6,558

Ranked in the US

#26

Ranked in the US

#22

Ranked in the US

#43

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Montana

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Ranked in the US

#25

Annual Taxes

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$7,078

Ranked in the US

#19

Ranked in the US

#33

Ranked in the US

#23

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Nebraska

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Ranked in the US

#15

Annual Taxes

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$7,177

Ranked in the US

#17

Ranked in the US

#7

Ranked in the US

#19

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Nevada

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Ranked in the US

#35

Annual Taxes

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$4,713

Ranked in the US

#48

Ranked in the US

#42

Ranked in the US

#46

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

New Hampshire

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Ranked in the US

#36

Annual Taxes

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$5,025

Ranked in the US

#43

Ranked in the US

#3

Ranked in the US

#18

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

New Jersey

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Ranked in the US

#6

Annual Taxes

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$8,330

Ranked in the US

#7

Ranked in the US

#1

Ranked in the US

#1

New Jersey carries a tax burden of 13.20%, making it the sixth state with the highest tax burden in the US. The state imposes income taxes on residents and businesses, alongside sales and property taxes. New Jersey's tax structure aims to generate revenue for public services, education, and infrastructure while managing fiscal responsibilities.

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

New Mexico

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Ranked in the US

#27

Annual Taxes

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$6,370

Ranked in the US

#30

Ranked in the US

#41

Ranked in the US

#30

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

New York

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Ranked in the US

#1

Annual Taxes

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$9,111

Ranked in the US

#4

Ranked in the US

#14

Ranked in the US

#20

New York carries the highest tax burden among all states (15.90%). The state imposes income taxes on individuals and businesses, alongside sales and property taxes. New York's tax policies aim to fund a wide range of public services, education, healthcare, transportation, and social programs.

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

North Carolina

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Ranked in the US

#29

Annual Taxes

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$6,846

Ranked in the US

#21

Ranked in the US

#32

Ranked in the US

#45

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

North Dakota

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Ranked in the US

#45

Annual Taxes

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$4,812

Ranked in the US

#46

Ranked in the US

#24

Ranked in the US

#42

North Dakota has a tax burden at 8.80%. The state benefits from its robust energy sector, particularly oil production, which helps offset the need for higher taxes. Nevertheless, North Dakota maintains a relatively favorable tax climate compared to many other states.

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Ohio

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Ranked in the US

#28

Annual Taxes

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$5,426

Ranked in the US

#41

Ranked in the US

#10

Ranked in the US

#47

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Oklahoma

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Ranked in the US

#42

Annual Taxes

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$6,206

Ranked in the US

#33

Ranked in the US

#29

Ranked in the US

#44

Oklahoma rounds up the top ten states with the lowest tax burdens, with a 9% state-local tax burden. The state imposes income taxes on residents and corporations, alongside sales and property taxes. Oklahoma's tax policies aim to support infrastructure and public services while encouraging economic growth.

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Oregon

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Ranked in the US

#21

Annual Taxes

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$9,213

Ranked in the US

#3

Ranked in the US

#23

Ranked in the US

#15

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Pennsylvania

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Ranked in the US

#24

Annual Taxes

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$5,903

Ranked in the US

#39

Ranked in the US

#12

Ranked in the US

#5

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Rhode Island

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Ranked in the US

#16

Annual Taxes

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$6,552

Ranked in the US

#27

Ranked in the US

#13

Ranked in the US

#22

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

South Carolina

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Ranked in the US

#44

Annual Taxes

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$7,613

Ranked in the US

#12

Ranked in the US

#44

Ranked in the US

#37

South Carolina matches Georgia's tax burden (8.90%), ranking ninth lowest tax burden in the US overall. The state levies income taxes on individuals and businesses while relying on sales and property taxes to generate revenue. South Carolina aims to maintain a competitive tax environment to attract businesses and foster economic development.

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

South Dakota

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Ranked in the US

#48

Annual Taxes

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$4,310

Ranked in the US

#51

Ranked in the US

#17

Ranked in the US

#48

South Dakota stands out with its relatively low tax burden of 8.40%, earning the fourth spot for states with the lowest tax burdens. The state does not levy personal or corporate income taxes, relying heavily on sales and use taxes instead. This approach contributes to South Dakota's attractive tax climate.

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Tennessee

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Ranked in the US

#49

Annual Taxes

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$4,483

Ranked in the US

#49

Ranked in the US

#37

Ranked in the US

#25

Tennessee ranks third in terms of states with the lowest tax burden, with a tax burden at 7.60%, primarily due to its unique tax structure. The state does not levy an income tax on wages, but it imposes a sales tax on most goods and services. This combination results in a lower overall tax burden for Tennessee residents.

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Texas

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Ranked in the US

#47

Annual Taxes

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$4,761

Ranked in the US

#47

Ranked in the US

#6

Ranked in the US

#49

Sharing the same tax burden percentage as Michigan (8.60%), Texas ranks sixth state with the lowest tax burden. Texas is known for its business-friendly environment, thanks in part to its lack of personal income tax. However, the state relies heavily on sales and property taxes to fund public services and infrastructure.

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Utah

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Ranked in the US

#12

Annual Taxes

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$6,674

Ranked in the US

#24

Ranked in the US

#43

Ranked in the US

#40

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Vermont

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Ranked in the US

#4

Annual Taxes

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$6,409

Ranked in the US

#29

Ranked in the US

#4

Ranked in the US

#9

Vermont carries a tax burden of 13.60%, making it the fourth state with the highest tax burden in the US. The state imposes income taxes on individuals and businesses, alongside sales and property taxes. Vermont's tax structure aims to generate revenue for public services, education, and healthcare while supporting sustainable development and environmental conservation.

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Virginia

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Ranked in the US

#8

Annual Taxes

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$7,951

Ranked in the US

#8

Ranked in the US

#27

Ranked in the US

#29

Virginia carries a tax burden of 12.50%, making it the eighth state with the highest tax burden in the US. The state imposes income taxes on individuals and businesses, alongside sales and property taxes. Virginia's tax structure aims to provide funding for public services, transportation, and education while maintaining a competitive business environment.

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Washington

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Ranked in the US

#23

Annual Taxes

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$5,381

Ranked in the US

#42

Ranked in the US

#28

Ranked in the US

#50

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

West Virginia

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Ranked in the US

#32

Annual Taxes

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$5,931

Ranked in the US

#38

Ranked in the US

#45

Ranked in the US

#26

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Wisconsin

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Ranked in the US

#20

Annual Taxes

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$6,568

Ranked in the US

#25

Ranked in the US

#9

Ranked in the US

#14

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

Wyoming

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Ranked in the US

#50

Annual Taxes

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$4,425

Ranked in the US

#50

Ranked in the US

#48

Ranked in the US

#51

Wyoming secures the second spot with a relatively low state-local tax burden of 7.50%. The state's economy benefits from its vast energy reserves, including coal, natural gas, and oil. These resources contribute to Wyoming's ability to maintain a favorable tax environment for its residents.

State-Local Tax Burden

Annual Taxes

Property Tax Rate

Corporate Tax Rate

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