Tax Burden by State in the US — the High and the Low

State Income Tax

Federal income tax is the same across the US. However, state income tax varies greatly among states. State income tax is defined as the tax you pay based on how much money you earn.

Highest and Lowest State Income Tax Rates

State income tax can significantly impact your standard of living. Therefore, learning about the most heavily and lightly taxed states can help you make better decisions.

States with the Highest Income Tax in the US:

•     California: 13.3% — annual income over $1 million.

•     New York: 10.9% — singles earning over $1,077,550. Couples earning over $2,155,350.

•     Hawaii: 11% — singles earning over $200,000. Couples earning over $400,000.

•     Oregon: 9.9% — singles earning over $125,000. Couples earning over $250,000.

•     New Jersey: 10.75% — annual income over $5 million.

•     Minnesota: 9.85% — singles earning over $164,400. Couples earning over $273,470.

•     Vermont: 8.75% — singles earning over $204,000. Couples earning over $243,750.

•     District of Columbia: 10.75% — annual income over $1 million.

•     Iowa: 8.53% — singles earning over $75,420.

•     Wisconsin: 7.65% — singles earning over $263,480. Couples earning over $351,310.

States with Zero Income Tax in the US:

It might be surprising to learn that some states in the US have completely exempted their citizens from the state income tax. They are as follows:

•     Alaska

•     Nevada

•     Florida

•     Tennessee

•     South Dakota

•     Washington

•     Texas

•     Wyoming

Highest and Lowest Property Tax Rates

States with the Highest Property Tax in the US

Property taxes can also vary depending on the state. Following are the states with the highest reported property taxes in the US:

•     New Jersey: 2.20% or higher.

•     Illinois: 2.10% on average.

•     New Hampshire: 1.93% on average.

•     Connecticut: 1.79% or higher.

•     Vermont: 1.83% on average.

•     Texas: 1.69% on average.

•     Nebraska: 1.65% on average.

•     Wisconsin: 1.61% on average.

•     Ohio: 1.59% on average.

•     Iowa: 1.53% on average.

States with the Lowest Property Tax in the US:

Conversely, the US states with the lowest property taxes are as follows:

•     Hawaii: 0.30% or lower.

•     Alabama: 0.40% on average.

•     Colorado: 0.51% on average.

•     Louisiana: 0.55% on average.

•     District of Columbia: 0.55% on average (not technically a state).

•     South Carolina: 0.57% on average.

•     West Virginia: 0.59% on average.

•     Nevada: 0.60 percent on average.

•     Wyoming: 0.61% on average (no income tax).

•     Utah: 0.62% on average.

Final Words

Whether you want to move to a different state for education, work, or family, learning about state-level taxes can be helpful. You also have to factor in other costs, such as insurance can also have a material impact. This list covers most of the necessary information. For more information like this, explore our other articles.