In some parts of America, your wallet might feel slightly lighter thanks to taxes, as some states take a bigger bite out of your paycheck than others. Today, we’re looking at 18 of the states where people face the highest tax burdens. This will cover everything, including property taxes and sales taxes.
The Big Apple Bites Back
This data comes from a Wallet Hub report. New York is number one, but not in a way that’ll make the residents smile unless they love contributing to state coffers! With a total tax burden of 12.02%, living in the Empire State means shelling out more on taxes than anywhere else. This includes a 4.63% slice for income tax and a 3.03% in sales and excise taxes.
Paradise Comes at a Price
Hawaii has beautiful beaches and stunning sunsets but also a total tax burden of 11.80%. Property tax is one of the lowest at only 2.64%, although the catch comes with the income and sales taxes that really add up. While enjoying that ocean breeze, remember it’s funded by a 3.82% income tax and a 5.34% sales tax.
Not Just Maple Syrup
Vermont is certainly charming with its lovely fall greenery and quaint towns, but its tax burden of 11.12% isn’t so great. You’ll want to keep an eye on your wallet in this cozy place because you’ll contribute 4.85% of it towards property taxes, which is among the highest. Income and sales taxes are a bit lighter, so maybe it balances out.
The Way Life Should Be Taxed
Maine, known for its lighthouses and lobster, has a 10.74% total tax burden. Thanks to those serene views, the property tax here is the highest on our list at 4.86%, although income tax is a little lighter at 2.59%. That makes it a bit easier to enjoy those coastal drives, although you’ll probably still be worrying about your finances.
The Golden State’s Pricey Shine
The California dream comes with a total tax burden of 10.40%. On the plus side, even with all the glamour and tech, the property tax rate is quite low at 2.73%. But don’t let that fool you—the income tax is the highest of all states at 4.87%, so those sunny days might cost you more than you think.
The Quietness of New England
As quiet and leafy as it is, Connecticut still has a high tax burden of 10.08%. Property taxes here will set you back 3.95%, and while that’s not the highest, you’ll really feel the difference when you pay that 4.2% income tax. It seems that the charm of the Nutmeg State comes with quite a cost.
The Land of 10,000 Taxes
Minnesota has 10,000 lakes but also a total tax burden of 9.95%. Property taxes are 2.82%, although income tax is fairly moderate, meaning that the financial climate can feel as brisk as the air. The high taxes contribute to the state’s high quality of life, including excellent public schools and well-maintained roads.
The Windy City
Illinois comes in with a 9.67% total tax burden, which is thanks to Chicago being in your backyard. Those property taxes feel a bit steep at 3.67%, and the income tax isn’t far behind. Although it’s a nice place to live, keeping up with the bills here can definitely test your budget management skills.
Garden State or Tax State?
The total tax burden in New Jersey is 9.47%, while it ranks third for property taxes with 4.59%. Income taxes are more forgiving at 2.36%, which is a little bit of relief, especially when you compare it to the huge cities nearby like New York City and Philadelphia. Clearly, convenience comes at a cost.
Small State, Big Taxes
Don’t let Rhode Island’s size fool you because it has a 9.38% total tax burden, which is some of the highest taxes relative to its size. The property tax isn’t as shocking at 3.83%, but the sales taxes might catch you off guard. This little state uses its tax revenue wisely to maintain a high standard of living.
Scenic Views With Steady Taxes
Beauty comes at a price, and for Utah’s gorgeous landscapes, it’s a tax burden of 9.35%. While property taxes are relatively low at 2.19%, the income and sales are high enough to maintain those mountain roads, and public services are well-maintained. The state is known for being responsible with its finances, so many people consider paying taxes a solid investment.
Taxing the Heartland
Right in the heart of America, we have Kansas, where people give a 9.29% cut of their income to taxes. Property tax is 3.04%, and both income and sales taxes are moderate, so you’re investing quite a bit in those amber waves of grain. These funds go toward keeping the state’s educational systems and infrastructure in pace with people’s needs.
Costly in Chesapeake
Maryland’s residents hand over 9.26% in total taxes and a solid 4.00% in income tax. Here, you’re paying a premium to be close to the Chesapeake Bay and one of the country’s highest median incomes. This tax rate supports many public initiatives, including health and education, supporting Maryland’s reputation as a prosperous state.
Cornfields and Contributions
Iowa’s fields stretch far and wide, as do the taxes, with a total burden of 9.21%. Lower property taxes at 3.39% mean more money stays in your pocket, but income and sales taxes keep you contributing your fair share to the state’s agriculture. This revenue is important to support urban and rural development for balanced growth across the state.
More Corn Means More Bills
Nebraska’s total tax burden is 9.16%, and the property tax is mid-range. However, the sales tax might really surprise you, as this funds those endless prairie programs. These taxes also support the educational and healthcare needs that give the state such a good quality of life.
Round on the Ends
Ohio has a total tax burden of 8.92% and moderate rates across the board. Living here means enjoying the Rock and Roll Hall of Fame without too heavy a tax burden. Unfortunately, even though it’s cheaper here on a state level, several local areas charge much higher property taxes, among other taxes.
Crossroads of Taxes
Indiana is the Crossroads of America and has a tax burden of 8.85%. Property taxes are on the lower end at 2.14%, although the income tax is higher at 3.06%. This funding supports public safety and health services, as well as the roads, which is one of the reasons Indiana is one of the safer states.
Natural Beauty
Lastly, we have Arkansas with an 8.79% tax burden. The Natural State has a low property tax rate of 1.65%, but the sales and excise taxes are higher at 4.88%. Even so, the state appeals to many people, and this approach to finances allows for growth and investment in local economies.
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