To paraphrase Benjamin Franklin, taxes are one of only two certainties in the world. Americans know this all too well. Taxpayers in the United States pay over $11,000 a year on average in federal, state, and local taxes, or 20% of their gross annual pay.
While all Americans are subject to the same federal income tax code, state and local tax policies vary considerably by region — and therefore the average take-home pay after taxes differs as well.
Using the IRS’s Statistics of Income program, 24/7 Wall St. calculated the average annual income after taxes in every state. The combined effect of federal, state, and local taxes can reduce the average annual income by as little as 13.4% or by as much as 33.6%, depending on the state.
In an interview with 24/7 Wall St., Katherine Loughead, a policy analyst with the Tax Foundation, a tax policy think tank, explained some of the factors driving the differences. In states rich in natural resources like oil and natural gas, policy makers can raise revenue by taxing energy companies rather than individual incomes. “Those states are able to rely more on extraction taxes … and therefore do not have to rely on an income tax,” Loughead said.
Indeed, resource-rich states like Alaska and Wyoming are among the seven states that do not levy a personal income tax. Partially as a result, taxes have a relatively small impact on the net income of the average resident.
Meanwhile, many states without valuable natural resources have to rely more heavily on revenue sources shouldered largely by state residents. These are typically a mix of income, sales, and other taxes like excise, gas, and motor vehicle taxes. In half of all states, taxes on property account for the largest share of state and local revenue — and some of the states where residents pay the largest share of their annual income in taxes are also the states with the highest property taxes.
Americans living in states without the advantage of a booming tourism industry or natural resources are not doomed to pay more in taxes, however. “Of course different states do have different revenue needs, and not all states are raising as much,” Loughead said. States with larger budgets per capita will always need to raise more money, regardless of who pays.
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Editor’s Note: In a previous version of this article, Alabama was inadvertently left off of the list. The mistake has been corrected.Â
Source: KuntalSaha / Getty Images
Alabama
> Avg. income after taxes: $36,094 (pre-tax: $42,334)
> Avg. taxes paid as pct. of income: 14.7% (7th lowest)
> Federal income tax collections per capita: $3,036 (6th lowest)
> State and local tax collections per capita: $3,204 (the lowest)
> Largest source of state and local tax collections: Sales tax (30.7% of total)
Source: volvob12b / Flickr
Alaska
> Avg. income after taxes: $51,683 (pre-tax: $59,687)
> Avg. taxes paid as pct. of income: 13.4% (the lowest)
> Federal income tax collections per capita: $4,192 (16th lowest)
> State and local tax collections per capita: $3,813 (12th lowest)
> Largest source of state and local tax collections: Property tax (53.7% of total)
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Source: Bill_Vorasate / Getty Images
Arizona
> Avg. income after taxes: $36,599 (pre-tax: $43,650)
> Avg. taxes paid as pct. of income: 16.2% (12th lowest)
> Federal income tax collections per capita: $3,488 (11th lowest)
> State and local tax collections per capita: $3,563 (7th lowest)
> Largest source of state and local tax collections: Sales tax (38.7% of total)
Source: Davel5957 / Getty Images
Arkansas
> Avg. income after taxes: $32,019 (pre-tax: $42,566)
> Avg. taxes paid as pct. of income: 24.8% (7th highest)
> Federal income tax collections per capita: $6,593 (16th highest)
> State and local tax collections per capita: $3,955 (21st lowest)
> Largest source of state and local tax collections: Sales tax (37.5% of total)
Source: pedrosz / Flickr
California
> Avg. income after taxes: $50,094 (pre-tax: $62,586)
> Avg. taxes paid as pct. of income: 20.0% (23rd highest)
> Federal income tax collections per capita: $6,401 (17th highest)
> State and local tax collections per capita: $6,091 (8th highest)
> Largest source of state and local tax collections: Income tax (33.8% of total)
Source: f11photo / Getty Images
Colorado
> Avg. income after taxes: $45,883 (pre-tax: $56,846)
> Avg. taxes paid as pct. of income: 19.3% (25th lowest)
> Federal income tax collections per capita: $6,351 (18th highest)
> State and local tax collections per capita: $4,612 (22nd highest)
> Largest source of state and local tax collections: Property tax (30.8% of total)
Source: SeanPavonePhoto / Getty Images
Connecticut
> Avg. income after taxes: $59,272 (pre-tax: $74,561)
> Avg. taxes paid as pct. of income: 20.5% (21st highest)
> Federal income tax collections per capita: $8,051 (9th highest)
> State and local tax collections per capita: $7,239 (2nd highest)
> Largest source of state and local tax collections: Property tax (40.5% of total)
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Source: mdgmorris / Getty Images
Delaware
> Avg. income after taxes: $34,182 (pre-tax: $51,449)
> Avg. taxes paid as pct. of income: 33.6% (the highest)
> Federal income tax collections per capita: $12,492 (the highest)
> State and local tax collections per capita: $4,775 (21st highest)
> Largest source of state and local tax collections: Other taxes (49.0% of total)
Source: Meinzahn / iStock
Florida
> Avg. income after taxes: $40,715 (pre-tax: $49,417)
> Avg. taxes paid as pct. of income: 17.6% (15th lowest)
> Federal income tax collections per capita: $5,219 (24th highest)
> State and local tax collections per capita: $3,483 (5th lowest)
> Largest source of state and local tax collections: Property tax (36.3% of total)
Source: ferrantraite / Getty Images
Georgia
> Avg. income after taxes: $36,950 (pre-tax: $45,745)
> Avg. taxes paid as pct. of income: 19.2% (24th lowest)
> Federal income tax collections per capita: $5,132 (25th lowest)
> State and local tax collections per capita: $3,663 (9th lowest)
> Largest source of state and local tax collections: Property tax (31.7% of total)
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Source: Eric Tessmer / Wikimedia Commons
Hawaii
> Avg. income after taxes: $44,729 (pre-tax: $54,565)
> Avg. taxes paid as pct. of income: 18.0% (17th lowest)
> Federal income tax collections per capita: $3,366 (9th lowest)
> State and local tax collections per capita: $6,470 (5th highest)
> Largest source of state and local tax collections: Sales tax (37.2% of total)
Source: vkbhat / Getty Images
Idaho
> Avg. income after taxes: $35,940 (pre-tax: $43,155)
> Avg. taxes paid as pct. of income: 16.7% (14th lowest)
> Federal income tax collections per capita: $3,707 (13th lowest)
> State and local tax collections per capita: $3,508 (6th lowest)
> Largest source of state and local tax collections: Property tax (26.9% of total)
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Source: RudyBalasko / Getty Images
Illinois
> Avg. income after taxes: $43,654 (pre-tax: $56,933)
> Avg. taxes paid as pct. of income: 23.3% (9th highest)
> Federal income tax collections per capita: $7,620 (10th highest)
> State and local tax collections per capita: $5,658 (11th highest)
> Largest source of state and local tax collections: Property tax (37.5% of total)
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Source: Maksymowicz / Getty Images
Indiana
> Avg. income after taxes: $36,927 (pre-tax: $46,646)
> Avg. taxes paid as pct. of income: 20.8% (18th highest)
> Federal income tax collections per capita: $5,846 (20th highest)
> State and local tax collections per capita: $3,873 (15th lowest)
> Largest source of state and local tax collections: Sales tax (28.4% of total)
Source: Davel5957 / Getty Images
Iowa
> Avg. income after taxes: $38,824 (pre-tax: $48,823)
> Avg. taxes paid as pct. of income: 20.5% (22nd highest)
> Federal income tax collections per capita: $5,116 (23rd lowest)
> State and local tax collections per capita: $4,883 (18th highest)
> Largest source of state and local tax collections: Property tax (32.4% of total)
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Source: ricardoreitmeyer / Getty Images
Kansas
> Avg. income after taxes: $40,532 (pre-tax: $50,155)
> Avg. taxes paid as pct. of income: 19.2% (22nd lowest)
> Federal income tax collections per capita: $5,131 (24th lowest)
> State and local tax collections per capita: $4,492 (25th highest)
> Largest source of state and local tax collections: Property tax (33.1% of total)
Source: Flickr / Bill_alden
Kentucky
> Avg. income after taxes: $32,939 (pre-tax: $41,779)
> Avg. taxes paid as pct. of income: 21.2% (16th highest)
> Federal income tax collections per capita: $5,019 (18th lowest)
> State and local tax collections per capita: $3,821 (14th lowest)
> Largest source of state and local tax collections: Income tax (33.3% of total)
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Source: f11photo / Getty Images
Louisiana
> Avg. income after taxes: $35,370 (pre-tax: $45,542)
> Avg. taxes paid as pct. of income: 22.3% (13th highest)
> Federal income tax collections per capita: $6,278 (19th highest)
> State and local tax collections per capita: $3,894 (17th lowest)
> Largest source of state and local tax collections: Sales tax (41.0% of total)
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Source: SeanPavonePhoto / Getty Images
Maine
> Avg. income after taxes: $39,520 (pre-tax: $48,241)
> Avg. taxes paid as pct. of income: 18.1% (18th lowest)
> Federal income tax collections per capita: $3,520 (12th lowest)
> State and local tax collections per capita: $5,201 (14th highest)
> Largest source of state and local tax collections: Property tax (40.4% of total)
Source: Sean Pavone / Getty Images
Maryland
> Avg. income after taxes: $48,543 (pre-tax: $62,914)
> Avg. taxes paid as pct. of income: 22.8% (10th highest)
> Federal income tax collections per capita: $8,324 (6th highest)
> State and local tax collections per capita: $6,047 (9th highest)
> Largest source of state and local tax collections: Income tax (37.8% of total)
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Source: stresstensor / Getty Images
Massachusetts
> Avg. income after taxes: $52,514 (pre-tax: $70,073)
> Avg. taxes paid as pct. of income: 25.1% (5th highest)
> Federal income tax collections per capita: $11,092 (3rd highest)
> State and local tax collections per capita: $6,467 (6th highest)
> Largest source of state and local tax collections: Property tax (36.4% of total)
Source: SolomonCrowe / Getty Images
Michigan
> Avg. income after taxes: $38,171 (pre-tax: $47,582)
> Avg. taxes paid as pct. of income: 19.8% (24th highest)
> Federal income tax collections per capita: $5,337 (23rd highest)
> State and local tax collections per capita: $4,075 (23rd lowest)
> Largest source of state and local tax collections: Property tax (34.6% of total)
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Source: AlexiusHoratius / Wikimedia Commons
Minnesota
> Avg. income after taxes: $37,846 (pre-tax: $56,374)
> Avg. taxes paid as pct. of income: 32.9% (2nd highest)
> Federal income tax collections per capita: $12,436 (2nd highest)
> State and local tax collections per capita: $6,092 (7th highest)
> Largest source of state and local tax collections: Income tax (31.9% of total)
Source: maxmironov / Getty Images
Mississippi
> Avg. income after taxes: $32,600 (pre-tax: $37,994)
> Avg. taxes paid as pct. of income: 14.2% (3rd lowest)
> Federal income tax collections per capita: $1,784 (the lowest)
> State and local tax collections per capita: $3,609 (8th lowest)
> Largest source of state and local tax collections: Sales tax (30.6% of total)
Source: f11photo / Getty Images
Missouri
> Avg. income after taxes: $36,151 (pre-tax: $46,635)
> Avg. taxes paid as pct. of income: 22.5% (12th highest)
> Federal income tax collections per capita: $6,799 (13th highest)
> State and local tax collections per capita: $3,685 (10th lowest)
> Largest source of state and local tax collections: Income tax (28.6% of total)
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Source: peeterv / Getty Images
Montana
> Avg. income after taxes: $40,208 (pre-tax: $47,120)
> Avg. taxes paid as pct. of income: 14.7% (5th lowest)
> Federal income tax collections per capita: $3,093 (7th lowest)
> State and local tax collections per capita: $3,818 (13th lowest)
> Largest source of state and local tax collections: Property tax (39.7% of total)
Source: chapin31 / Getty Images
Nebraska
> Avg. income after taxes: $40,364 (pre-tax: $52,110)
> Avg. taxes paid as pct. of income: 22.5% (11th highest)
> Federal income tax collections per capita: $6,654 (14th highest)
> State and local tax collections per capita: $5,092 (15th highest)
> Largest source of state and local tax collections: Property tax (37.5% of total)
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Source: photoquest7 / Getty Images
Nevada
> Avg. income after taxes: $40,883 (pre-tax: $48,225)
> Avg. taxes paid as pct. of income: 15.2% (9th lowest)
> Federal income tax collections per capita: $3,036 (5th lowest)
> State and local tax collections per capita: $4,306 (24th lowest)
> Largest source of state and local tax collections: Sales tax (39.4% of total)
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Source: DenisTangneyJr / Getty Images
New Hampshire
> Avg. income after taxes: $51,420 (pre-tax: $61,405)
> Avg. taxes paid as pct. of income: 16.3% (13th lowest)
> Federal income tax collections per capita: $5,193 (25th highest)
> State and local tax collections per capita: $4,791 (19th highest)
> Largest source of state and local tax collections: Property tax (64.7% of total)
Source: SeanPavonePhoto / Getty Images
New Jersey
> Avg. income after taxes: $51,207 (pre-tax: $67,609)
> Avg. taxes paid as pct. of income: 24.3% (8th highest)
> Federal income tax collections per capita: $9,614 (4th highest)
> State and local tax collections per capita: $6,788 (3rd highest)
> Largest source of state and local tax collections: Property tax (46.6% of total)
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Source: DenisTangneyJr / Getty Images
New Mexico
> Avg. income after taxes: $35,155 (pre-tax: $41,198)
> Avg. taxes paid as pct. of income: 14.7% (6th lowest)
> Federal income tax collections per capita: $2,166 (3rd lowest)
> State and local tax collections per capita: $3,877 (16th lowest)
> Largest source of state and local tax collections: Sales tax (37.8% of total)
Source: spyarm / Getty Images
New York
> Avg. income after taxes: $51,307 (pre-tax: $68,667)
> Avg. taxes paid as pct. of income: 25.3% (4th highest)
> Federal income tax collections per capita: $8,314 (7th highest)
> State and local tax collections per capita: $9,045 (the highest)
> Largest source of state and local tax collections: Income tax (32.7% of total)
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Source: Sean Pavone / Getty Images
North Carolina
> Avg. income after taxes: $36,847 (pre-tax: $45,834)
> Avg. taxes paid as pct. of income: 19.6% (25th highest)
> Federal income tax collections per capita: $5,068 (21st lowest)
> State and local tax collections per capita: $3,919 (19th lowest)
> Largest source of state and local tax collections: Income tax (30.3% of total)
Source: csfotoimages / Getty Images
North Dakota
> Avg. income after taxes: $42,622 (pre-tax: $54,306)
> Avg. taxes paid as pct. of income: 21.5% (14th highest)
> Federal income tax collections per capita: $5,043 (19th lowest)
> State and local tax collections per capita: $6,640 (4th highest)
> Largest source of state and local tax collections: Other taxes (45.8% of total)
Source: TraceRouda / Getty Images
Ohio
> Avg. income after taxes: $35,273 (pre-tax: $48,242)
> Avg. taxes paid as pct. of income: 26.9% (3rd highest)
> Federal income tax collections per capita: $8,500 (5th highest)
> State and local tax collections per capita: $4,469 (25th lowest)
> Largest source of state and local tax collections: Property tax (28.3% of total)
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Source: Majestic_Aerials / Getty Images
Oklahoma
> Avg. income after taxes: $39,218 (pre-tax: $46,128)
> Avg. taxes paid as pct. of income: 15.0% (8th lowest)
> Federal income tax collections per capita: $3,457 (10th lowest)
> State and local tax collections per capita: $3,453 (4th lowest)
> Largest source of state and local tax collections: Sales tax (33.3% of total)
Source: BoucherPhotoStudio / iStock
Oregon
> Avg. income after taxes: $40,327 (pre-tax: $49,908)
> Avg. taxes paid as pct. of income: 19.2% (23rd lowest)
> Federal income tax collections per capita: $5,079 (22nd lowest)
> State and local tax collections per capita: $4,502 (24th highest)
> Largest source of state and local tax collections: Income tax (41.7% of total)
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Source: SeanPavonePhoto / Getty Images
Pennsylvania
> Avg. income after taxes: $43,447 (pre-tax: $55,349)
> Avg. taxes paid as pct. of income: 21.5% (15th highest)
> Federal income tax collections per capita: $6,843 (12th highest)
> State and local tax collections per capita: $5,060 (16th highest)
> Largest source of state and local tax collections: Property tax (29.2% of total)
Source: DenisTangneyJr / Getty Images
Rhode Island
> Avg. income after taxes: $40,902 (pre-tax: $54,523)
> Avg. taxes paid as pct. of income: 25.0% (6th highest)
> Federal income tax collections per capita: $8,057 (8th highest)
> State and local tax collections per capita: $5,565 (12th highest)
> Largest source of state and local tax collections: Property tax (43.4% of total)
Source: traveler1116 / Getty Images
South Carolina
> Avg. income after taxes: $36,162 (pre-tax: $42,736)
> Avg. taxes paid as pct. of income: 15.4% (10th lowest)
> Federal income tax collections per capita: $3,138 (8th lowest)
> State and local tax collections per capita: $3,436 (3rd lowest)
> Largest source of state and local tax collections: Property tax (33.9% of total)
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Source: Geoff Eccles / Getty Images
South Dakota
> Avg. income after taxes: $42,100 (pre-tax: $50,141)
> Avg. taxes paid as pct. of income: 16.0% (11th lowest)
> Federal income tax collections per capita: $4,109 (14th lowest)
> State and local tax collections per capita: $3,932 (20th lowest)
> Largest source of state and local tax collections: Sales tax (39.6% of total)
Source: DenisTangneyJr / Getty Images
Tennessee
> Avg. income after taxes: $37,262 (pre-tax: $47,179)
> Avg. taxes paid as pct. of income: 21.0% (17th highest)
> Federal income tax collections per capita: $6,593 (15th highest)
> State and local tax collections per capita: $3,324 (2nd lowest)
> Largest source of state and local tax collections: Sales tax (41.5% of total)
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Source: dszc / Getty Images
Texas
> Avg. income after taxes: $40,082 (pre-tax: $49,161)
> Avg. taxes paid as pct. of income: 18.5% (20th lowest)
> Federal income tax collections per capita: $5,064 (20th lowest)
> State and local tax collections per capita: $4,015 (22nd lowest)
> Largest source of state and local tax collections: Property tax (43.8% of total)
Source: Bill_Dally / iStock
Utah
> Avg. income after taxes: $37,248 (pre-tax: $45,340)
> Avg. taxes paid as pct. of income: 17.8% (16th lowest)
> Federal income tax collections per capita: $4,346 (17th lowest)
> State and local tax collections per capita: $3,745 (11th lowest)
> Largest source of state and local tax collections: Income tax (29.6% of total)
Source: Jonathanking / Wikimedia Commons
Vermont
> Avg. income after taxes: $43,550 (pre-tax: $53,598)
> Avg. taxes paid as pct. of income: 18.7% (21st lowest)
> Federal income tax collections per capita: $4,147 (15th lowest)
> State and local tax collections per capita: $5,901 (10th highest)
> Largest source of state and local tax collections: Property tax (43.9% of total)
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Source: traveler1116 / Getty Images
Virginia
> Avg. income after taxes: $46,617 (pre-tax: $56,952)
> Avg. taxes paid as pct. of income: 18.1% (19th lowest)
> Federal income tax collections per capita: $5,773 (21st highest)
> State and local tax collections per capita: $4,562 (23rd highest)
> Largest source of state and local tax collections: Property tax (33.9% of total)
Source: aiisha5 / iStock
Washington
> Avg. income after taxes: $48,121 (pre-tax: $60,781)
> Avg. taxes paid as pct. of income: 20.8% (19th highest)
> Federal income tax collections per capita: $7,620 (11th highest)
> State and local tax collections per capita: $5,041 (17th highest)
> Largest source of state and local tax collections: Sales tax (46.4% of total)
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Source: Snoopywv / Wikimedia Commons
West Virginia
> Avg. income after taxes: $34,712 (pre-tax: $40,578)
> Avg. taxes paid as pct. of income: 14.5% (4th lowest)
> Federal income tax collections per capita: $1,954 (2nd lowest)
> State and local tax collections per capita: $3,912 (18th lowest)
> Largest source of state and local tax collections: Other taxes (30.4% of total)
Source: Ron_Thomas / Getty Images
Wisconsin
> Avg. income after taxes: $40,313 (pre-tax: $50,756)
> Avg. taxes paid as pct. of income: 20.6% (20th highest)
> Federal income tax collections per capita: $5,661 (22nd highest)
> State and local tax collections per capita: $4,782 (20th highest)
> Largest source of state and local tax collections: Property tax (34.1% of total)
Source: aoldman / Getty Images
Wyoming
> Avg. income after taxes: $51,584 (pre-tax: $60,095)
> Avg. taxes paid as pct. of income: 14.2% (2nd lowest)
> Federal income tax collections per capita: $2,960 (4th lowest)
> State and local tax collections per capita: $5,550 (13th highest)
> Largest source of state and local tax collections: Property tax (43.2% of total)
Methodology
To identify the average post-tax income in each state, 24/7 Wall St. calculated the average federal income tax and all state and local taxes per capita by state and subtracted the amounts from the personal income per capita. Individual federal income tax figures were calculated by subtracting income tax refunds from gross collections using data from the Internal Revenue Service’s Statistics of Income program for 2018. Data on net collections for state and local governments came from the U.S. Census Bureau’s Survey of Government Finances and are as of 2016. All other tax data came from the Tax Foundation.
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