As the sayings go, taxes are one of the few certainties in life, and the annual ritual of filling them with the IRS is not one that many people look forward to. The average American paid $10,845 in federal income taxes alone in 2020. But, while every resident is subject to the same federal tax laws, states also have the authority to set their own tax policy, and exactly how much you end up paying in taxes depends largely on where you live.Â
To raise revenue, state governments levy a broad range of taxes. While these typically include taxes on property, income, and sales, tax rates vary considerably by state. In fact, in some parts of the country, residents are exempt from paying one or more of these tax categories altogether.Â
Using 2021 data from the Tax Foundation, an independent, nonprofit, tax policy research organization, 24/7 Wall St. identified the states where people pay the largest share of their income on taxes. States are ranked by per capita tax collections as a share of income per capita. The Tax Foundation considered only taxes levied at the state level, and figures do not include federal or local taxes.Â
Depending on the state, per capita tax collections range from less than $1,500 to well over $6,000. As a percentage of a resident’s income, tax burdens by state range from as little as 2% to over 10%.Â
For most states, income tax is a major source of revenue. But several states do not levy an income tax at all and are able to offset lost revenue through other taxes. States with no income tax include Florida, which benefits from sales tax revenue through its tourism industry, and Alaska, which levies taxes on resource extraction, specifically oil and gas. (Here is a look at the most tax friendly states for the rich.)
Perhaps not surprisingly, each of the five states with the lowest tax burdens – where residents pay the smallest share of their income in taxes to the state government – do not levy a personal income tax. Meanwhile, many of the states with the highest tax burdens are also those with nation-leading revenue in per capita income taxes. (Here is a look at how much the average person pays in taxes in a lifetime in every state.)
Click here to see where people pay the most of their income in state taxes.
Click here to see our detailed methodology.
Source: Jacob Boomsma / iStock via Getty Images
50. Alaska
> State tax burden: 2.2% of avg. income
> State tax collections per capita: $1,438 (the lowest)
> State income per capita: $65,813 (14th highest)
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Source: Kirkikis / iStock Editorial via Getty Images
49. New Hampshire
> State tax burden: 3.2% of avg. income
> State tax collections per capita: $2,313 (4th lowest)
> State income per capita: $73,200 (7th highest)
Source: SeanPavonePhoto / iStock via Getty Images
48. Florida
> State tax burden: 3.6% of avg. income
> State tax collections per capita: $2,264 (3rd lowest)
> State income per capita: $62,270 (19th highest)
Source: f11photo / iStock via Getty Images
47. Texas
> State tax burden: 3.7% of avg. income
> State tax collections per capita: $2,214 (2nd lowest)
> State income per capita: $59,865 (25th lowest)
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Source: peeterv / iStock via Getty Images
46. South Dakota
> State tax burden: 3.7% of avg. income
> State tax collections per capita: $2,401 (5th lowest)
> State income per capita: $64,462 (16th highest)
Source: Art Wager / iStock via Getty Images
45. Missouri
> State tax burden: 4.4% of avg. income
> State tax collections per capita: $2,447 (6th lowest)
> State income per capita: $55,325 (11th lowest)
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44. Colorado
> State tax burden: 4.6% of avg. income
> State tax collections per capita: $3,238 (16th lowest)
> State income per capita: $70,706 (8th highest)
Source: SeanPavonePhoto / iStock via Getty Images
43. Georgia
> State tax burden: 4.6% of avg. income
> State tax collections per capita: $2,579 (8th lowest)
> State income per capita: $55,786 (13th lowest)
Source: DenisTangneyJr / E+ via Getty Images
42. Wyoming
> State tax burden: 4.6% of avg. income
> State tax collections per capita: $3,239 (17th lowest)
> State income per capita: $69,666 (10th highest)
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Source: Sean Pavone / iStock via Getty Images
41. South Carolina
> State tax burden: 4.9% of avg. income
> State tax collections per capita: $2,560 (7th lowest)
> State income per capita: $52,467 (8th lowest)
Source: DenisTangneyJr / iStock via Getty Images
40. Louisiana
> State tax burden: 4.9% of avg. income
> State tax collections per capita: $2,651 (9th lowest)
> State income per capita: $54,217 (10th lowest)
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39. Tennessee
> State tax burden: 5.1% of avg. income
> State tax collections per capita: $2,864 (13th lowest)
> State income per capita: $56,560 (18th lowest)
Source: JeffreyRasmussen / iStock via Getty Images
38. Arizona
> State tax burden: 5.2% of avg. income
> State tax collections per capita: $2,861 (12th lowest)
> State income per capita: $55,487 (12th lowest)
Source: pawel.gaul / E+ via Getty Images
37. Ohio
> State tax burden: 5.2% of avg. income
> State tax collections per capita: $2,963 (14th lowest)
> State income per capita: $56,879 (19th lowest)
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36. Oklahoma
> State tax burden: 5.3% of avg. income
> State tax collections per capita: $2,834 (11th lowest)
> State income per capita: $53,870 (9th lowest)
Source: f11photo / iStock via Getty Images
35. Nevada
> State tax burden: 5.5% of avg. income
> State tax collections per capita: $3,313 (20th lowest)
> State income per capita: $60,213 (24th highest)
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34. Virginia
> State tax burden: 5.6% of avg. income
> State tax collections per capita: $3,741 (23rd highest)
> State income per capita: $66,305 (12th highest)
Source: Sean Pavone / iStock via Getty Images
33. Alabama
> State tax burden: 5.7% of avg. income
> State tax collections per capita: $2,828 (10th lowest)
> State income per capita: $49,769 (3rd lowest)
Source: aiisha5 / iStock via Getty Images
32. Washington
> State tax burden: 5.7% of avg. income
> State tax collections per capita: $4,214 (12th highest)
> State income per capita: $73,775 (6th highest)
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31. Nebraska
> State tax burden: 5.8% of avg. income
> State tax collections per capita: $3,545 (25th highest)
> State income per capita: $61,205 (22nd highest)
Source: Kruck20 / iStock via Getty Images
30. North Carolina
> State tax burden: 5.9% of avg. income
> State tax collections per capita: $3,290 (19th lowest)
> State income per capita: $56,173 (15th lowest)
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29. Maryland
> State tax burden: 5.9% of avg. income
> State tax collections per capita: $4,091 (14th highest)
> State income per capita: $69,817 (9th highest)
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28. Pennsylvania
> State tax burden: 5.9% of avg. income
> State tax collections per capita: $3,824 (20th highest)
> State income per capita: $64,279 (18th highest)
Source: RudyBalasko / iStock via Getty Images
27. Michigan
> State tax burden: 6.1% of avg. income
> State tax collections per capita: $3,426 (23rd lowest)
> State income per capita: $56,494 (16th lowest)
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26. New Jersey
> State tax burden: 6.1% of avg. income
> State tax collections per capita: $4,714 (10th highest)
> State income per capita: $77,016 (3rd highest)
Source: Ultima_Gaina / iStock via Getty Images
25. New York
> State tax burden: 6.1% of avg. income
> State tax collections per capita: $4,714 (9th highest)
> State income per capita: $76,837 (4th highest)
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24. Rhode Island
> State tax burden: 6.2% of avg. income
> State tax collections per capita: $3,965 (16th highest)
> State income per capita: $64,376 (17th highest)
Source: peeterv / iStock via Getty Images
23. Montana
> State tax burden: 6.2% of avg. income
> State tax collections per capita: $3,514 (24th lowest)
> State income per capita: $56,949 (20th lowest)
Source: DenisTangneyJr / E+ via Getty Images
22. Massachusetts
> State tax burden: 6.2% of avg. income
> State tax collections per capita: $5,202 (7th highest)
> State income per capita: $83,653 (the highest)
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21. Kentucky
> State tax burden: 6.3% of avg. income
> State tax collections per capita: $3,242 (18th lowest)
> State income per capita: $51,266 (6th lowest)
Source: JamesBrey / E+ via Getty Images
20. Wisconsin
> State tax burden: 6.3% of avg. income
> State tax collections per capita: $3,782 (22nd highest)
> State income per capita: $59,626 (24th lowest)
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19. Iowa
> State tax burden: 6.5% of avg. income
> State tax collections per capita: $3,701 (24th highest)
> State income per capita: $57,163 (21st lowest)
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18. Idaho
> State tax burden: 6.5% of avg. income
> State tax collections per capita: $3,405 (22nd lowest)
> State income per capita: $52,369 (7th lowest)
Source: JaySi / iStock via Getty Images
17. Illinois
> State tax burden: 6.5% of avg. income
> State tax collections per capita: $4,382 (11th highest)
> State income per capita: $67,244 (11th highest)
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Source: Sean Pavone / iStock via Getty Images
16. Kansas
> State tax burden: 6.7% of avg. income
> State tax collections per capita: $3,958 (17th highest)
> State income per capita: $58,924 (23rd lowest)
Source: Sean Pavone / iStock via Getty Images
15. Utah
> State tax burden: 6.8% of avg. income
> State tax collections per capita: $3,784 (21st highest)
> State income per capita: $56,019 (14th lowest)
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14. Maine
> State tax burden: 6.8% of avg. income
> State tax collections per capita: $3,973 (15th highest)
> State income per capita: $58,484 (22nd lowest)
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13. Oregon
> State tax burden: 6.8% of avg. income
> State tax collections per capita: $4,192 (13th highest)
> State income per capita: $61,596 (21st highest)
Source: SeanPavonePhoto / iStock via Getty Images
12. Mississippi
> State tax burden: 6.9% of avg. income
> State tax collections per capita: $3,171 (15th lowest)
> State income per capita: $45,881 (the lowest)
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Source: Sean Pavone / iStock via Getty Images
11. Indiana
> State tax burden: 6.9% of avg. income
> State tax collections per capita: $3,915 (18th highest)
> State income per capita: $56,497 (17th lowest)
Source: Sean Pavone / iStock via Getty Images
10. West Virginia
> State tax burden: 7.0% of avg. income
> State tax collections per capita: $3,391 (21st lowest)
> State income per capita: $48,488 (2nd lowest)
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Source: Sean Pavone / iStock via Getty Images
9. New Mexico
> State tax burden: 7.0% of avg. income
> State tax collections per capita: $3,531 (25th lowest)
> State income per capita: $50,311 (4th lowest)
Source: SeanPavonePhoto / iStock via Getty Images
8. Connecticut
> State tax burden: 7.3% of avg. income
> State tax collections per capita: $6,120 (3rd highest)
> State income per capita: $83,294 (2nd highest)
Source: DenisTangneyJr / iStock via Getty Images
7. Arkansas
> State tax burden: 7.7% of avg. income
> State tax collections per capita: $3,875 (19th highest)
> State income per capita: $50,625 (5th lowest)
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6. North Dakota
> State tax burden: 7.8% of avg. income
> State tax collections per capita: $5,044 (8th highest)
> State income per capita: $64,524 (15th highest)
Source: kanonsky / iStock via Getty Images
5. California
> State tax burden: 8.3% of avg. income
> State tax collections per capita: $6,325 (2nd highest)
> State income per capita: $76,614 (5th highest)
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4. Minnesota
> State tax burden: 8.4% of avg. income
> State tax collections per capita: $5,571 (5th highest)
> State income per capita: $66,280 (13th highest)
Source: DenisTangneyJr / iStock via Getty Images
3. Delaware
> State tax burden: 9.0% of avg. income
> State tax collections per capita: $5,378 (6th highest)
> State income per capita: $59,931 (25th highest)
Source: okimo / iStock via Getty Images
2. Hawaii
> State tax burden: 9.2% of avg. income
> State tax collections per capita: $5,582 (4th highest)
> State income per capita: $60,947 (23rd highest)
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Source: SeanPavonePhoto / iStock via Getty Images
1. Vermont
> State tax burden: 10.3% of avg. income
> State tax collections per capita: $6,356 (the highest)
> State income per capita: $61,882 (20th highest)
Methodology
To identify where people pay the most of their income in state taxes, 24/7 Wall St. reviewed data from the report Facts & Figures 2023: How Does Your State Compare from the Tax Foundation, an independent, nonprofit, tax policy research organization.Â
States are ranked by per capita tax collections by the state government as a share of income per capita.Â
Per capita tax collections by state were calculated by the Tax Foundation using data from the U.S. Census Bureau, “Annual Survey of State Government Tax Collections” and are for the 2021 fiscal year. Income per capita was calculated by the Tax Foundation with data from the Bureau of Economic Analysis and is for the 2021 calendar year.Â
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