It’s tax season. Again. And as we all file our tax returns, it might be helpful to know that, when it comes to taxing their residents, not all states are equal. Federally, the tax code is uniform. But states vary considerably. And when it comes to where you currently live or where you might want to live in the future, it’s good to know the tax burdens of our 50 states.
When it comes to the tax burden, we define a state’s tax burden as state and local taxes paid by a state’s residents divided by that state’s share of the net national product. These taxes include:
- Property taxes;
- General sales taxes;
- Excise taxes on alcoholic beverages, amusements, insurance premiums, motor fuels, pari-mutuels, public utilities, tobacco products, and other miscellaneous transactions;
- License taxes on alcoholic beverages, amusements, general corporations, hunting and fishing, motor vehicles, motor vehicle operators, public utilities, occupations and businesses not classified elsewhere, and other miscellaneous licenses;
- Individual income taxes;
- Corporate income taxes;
- Estate, inheritance, and gift taxes;
- Documentary and transfer taxes;
- Severance taxes
|
State |
State-Local Effective Tax Rate |
Rank |
|
Alabama |
9.80% |
20 |
|
Alaska |
4.60% |
1 |
|
Arizona |
9.50% |
15 |
|
Arkansas |
10.20% |
26 |
|
California |
13.50% |
46 |
|
Colorado |
9.70% |
19 |
|
Connecticut |
15.40% |
49 |
|
Delaware |
12.40% |
42 |
|
District of Columbia |
12.00% |
(39) |
|
Florida |
9.10% |
11 |
|
Georgia |
8.90% |
8 |
|
Hawaii |
14.10% |
48 |
|
Idaho |
10.70% |
29 |
|
Illinois |
12.90% |
44 |
|
Indiana |
9.30% |
14 |
|
Iowa |
11.20% |
34 |
|
Kansas |
11.20% |
33 |
|
Kentucky |
9.60% |
17 |
|
Louisiana |
9.10% |
12 |
|
Maine |
12.40% |
41 |
|
Maryland |
11.30% |
35 |
|
Massachusetts |
11.50% |
37 |
|
Michigan |
8.60% |
5 |
|
Minnesota |
12.10% |
39 |
|
Mississippi |
9.80% |
21 |
|
Missouri |
9.30% |
13 |
|
Montana |
10.50% |
27 |
|
Nebraska |
11.50% |
38 |
|
Nevada |
9.60% |
18 |
|
New Hampshire |
9.60% |
16 |
|
New Jersey |
13.20% |
45 |
|
New Mexico |
10.20% |
25 |
|
New York |
15.90% |
50 |
|
North Carolina |
9.90% |
23 |
|
North Dakota |
8.80% |
7 |
|
Ohio |
10.00% |
24 |
|
Oklahoma |
9.00% |
10 |
|
Oregon |
10.80% |
31 |
|
Pennsylvania |
10.60% |
28 |
|
Rhode Island |
11.40% |
36 |
|
South Carolina |
8.90% |
9 |
|
South Dakota |
8.40% |
4 |
|
Tennessee |
7.60% |
3 |
|
Texas |
8.60% |
6 |
|
Utah |
12.10% |
40 |
|
Vermont |
13.60% |
47 |
|
Virginia |
12.50% |
43 |
|
Washington |
10.70% |
30 |
|
West Virginia |
9.80% |
22 |
|
Wisconsin |
10.90% |
32 |
|
Wyoming |
7.50% |
2 |
*Source: The Tax Foundation; https://taxfoundation.org/publications/state-local-tax-burden-rankings/
Note: D.C.’s rank does not affect states’ ranks. But the figure in parentheses indicates where it would rank if included.
Multnomah Group is a registered investment adviser, registered with the Securities and Exchange Commission. Any information contained herein or on Multnomah Group’s website is provided for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Multnomah Group does not provide legal or tax advice. Any views expressed herein are those of the author(s) and not necessarily those of Multnomah Group or Multnomah Group’s clients.