When it Comes to Taxes, Not All States are Equal

Spring is in the air, your neighbor is walking around shirtless in the backyard while blasting “All By Myself” from his Bluetooth speaker (or is that just me?) and taxes are due. You may think your taxes are high, but it turns out that not all states tax the same and that means different states have different tax burdens. How does that work?

Here’s Five Fast Facts on State Tax Burdens:

1. 🧾 Beast of Burden - Your tax burden measures the proportion of total personal income that residents pay toward state and local taxes. For this list, property taxes, individual income taxes and sales and excise taxes were combined.
2. 🗺️ High Five - According to a recent survey the five states with the highest overall tax burden are New York, Hawaii, Vermont, Maine, and California.
3. 📉 Low Impact - The five lowest burdened are Alaska, New Hampshire, Wyoming, Florida, and Tennessee. 
4. 📈 Excise It - Washington has the highest sales tax and excise tax burden and New Hampshire has the lowest.
5. 📊 All for One - California has the highest individual income tax burden, while seven states are tied for the lowest. It should be noted that those seven states (Washington, Nevada, South Dakota, Texas, Florida, Wyoming, and Alaska) all do not collect income taxes of any kind.

🔥Bottom line: Confused yet? I know I am. It’s why I pay an accountant to take care of everything rather than try to figure out stuff using online software or spreadsheets. That way lies madness. If this list has you considering a move, think carefully. More is going on behind the scenes with those numbers than you might think.

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What is your tax burden?

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