This State Has the Highest Taxes in America, According to Data
The average household in this state pays the most in taxes every year.
Let's be honest, nobody looks forward to doing their taxes. But as Americans, it is a responsibility that, in theory, all of us share. And for the average American household that means paying more than $8,800 a year in federal income tax, according to a recent report from personal finance website WalletHub. But not all tax burdens are created equal, and that is especially true when it comes to taxes at the local level, which can vary significantly from one state to another. With tax season looming over our heads, we consulted the WalletHub report to see which state pays the highest taxes in America.
Read on to discover how much the median U.S. household* in each state pays in state local taxes every year—ranked here from the lowest amount to the highest. And for how the pandemic may affect your finance filings, check out If You're Waiting on a Stimulus Check, Read This Before Filing Your Taxes.
*According to WalletHub: A "median U.S. household" is assumed to have an annual income of $63,218 (mean third quintile U.S. income); owns a home valued at $217,500 (median U.S. home value); owns a car valued at $24,970 (the highest-selling car of 2020); and spends annually an amount equal to the spending of a household earning the median U.S. income.
50
Alaska
Annual taxes on median U.S. household: $3,694
49
Delaware
Annual taxes on median U.S. household: $3,949
48
Montana
Annual taxes on median U.S. household: $4,494
47
Nevada
Annual taxes on median U.S. household: $5,017
46
Wyoming
Annual taxes on median U.S. household: $5,086
45
Florida
Annual taxes on median U.S. household: $5,204
And for more tax-related news you should know, check out If You Get an Email From the IRS With These 3 Words, Don't Click on It.
44
Utah
Annual taxes on median U.S. household: $5,274
43
Idaho
Annual taxes on median U.S. household: $5,329
42
Colorado
Annual taxes on median U.S. household: $5,396
41
Tennessee
Annual taxes on median U.S. household: $5,513
40
California
Annual taxes on median U.S. household: $5,662
And for the place where things are the least pricey in general, This Is the Cheapest State in America.
39
South Carolina
Annual taxes on median U.S. household: $5,683
38
Oregon
Annual taxes on median U.S. household: $5,686
37
Alabama
Annual taxes on median U.S. household: $5,754
36
Arizona
Annual taxes on median U.S. household: $6,021
35
West Virginia
Annual taxes on median U.S. household: $6,124
34
North Dakota
Annual taxes on median U.S. household: $6,343
33
New Hampshire
Annual taxes on median U.S. household: $6,358
32
New Mexico
Annual taxes on median U.S. household: $6,663
31
Georgia
Annual taxes on median U.S. household: $6,683
30
North Carolina
Annual taxes on median U.S. household: $6,710
29
Louisiana
Annual taxes on median U.S. household: $6,723
28
Hawaii
Annual taxes on median U.S. household: $6,736
27
Virginia
Annual taxes on median U.S. household: $6,783
26
Massachusetts
Annual taxes on median U.S. household: $6,890
25
South Dakota
Annual taxes on median U.S. household: $7,055
24
Missouri
Annual taxes on median U.S. household: $7,111
23
Minnesota
Annual taxes on median U.S. household: $7,128
22
Arkansas
Annual taxes on median U.S. household: $7,134
21
Oklahoma
Annual taxes on median U.S. household: $7,235
20
Maryland
Annual taxes on median U.S. household: $7,261
19
Vermont
Annual taxes on median U.S. household: $7,347
18
Indiana
Annual taxes on median U.S. household: $7,430
17
Maine
Annual taxes on median U.S. household: $7,465
16
Mississippi
Annual taxes on median U.S. household: $7,569
15
Washington
Annual taxes on median U.S. household: $7,601
14
Michigan
Annual taxes on median U.S. household: $7,728
13
Kentucky
Annual taxes on median U.S. household: $7,887
12
Texas
Annual taxes on median U.S. household: $8,083
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11
Rhode Island
Annual taxes on median U.S. household: $8,103
10
New Jersey
Annual taxes on median U.S. household: $8,117
9
Ohio
Annual taxes on median U.S. household: $8,329
8
Iowa
Annual taxes on median U.S. household: $8,334
7
Wisconsin
Annual taxes on median U.S. household: $8,357
6
Nebraska
Annual taxes on median U.S. household: $8,386
5
Kansas
Annual taxes on median U.S. household: $8,488
4
Pennsylvania
Annual taxes on median U.S. household: $8,830
3
New York
Annual taxes on median U.S. household: $8,900
2
Connecticut
Annual taxes on median U.S. household: $9,379
1
Illinois
Annual taxes on median U.S. household: $9,488
And if you live in a high-tax state you might be envious of those that don't, so make sure to check out This Is the Most Jealous State in America.
