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The 9 Worst States for Taxpayers

Article

Federal income taxes, of course, get the most headlines. But a number of other taxes can put a significant dent in one's wallet. A new report finds the amount of state and local taxes residents pay varies greatly by state.

Taxes

The deadline to file personal income taxes is less than a week away. For many, that means a tax refund is not far behind. For others, it means paying a tax bill or kicking themselves for not withholding enough from their paychecks.

Federal income taxes, of course, get the most headlines. But a number of other taxes can put a significant dent in one’s wallet. The amount of state and local taxes residents pay varies greatly by state, as different jurisdictions tax property, food, gasoline, and other items at vastly different rates.

The consumer finance website WalletHub took a look at which states place the heaviest and lightest tax burdens on their residents, compiling a list of the Best and Worst States to be a Taxpayer. They threw in the District of Columbia, even though it’s not a state (the district was found to be the 18th best jurisdiction for taxpayers).

WalletHub looked at a variety of taxes to come up with an average state and local tax bill in each state. Alaska was found to be the “best state for taxpayers.” Taxpayers in Alaska pay just $2,993 per year in state and local taxes, on average. Next up was Delaware ($3,177) and Montana ($3,639).

Meanwhile, taxpayers in some states pay more than double what Alaskans pay. What follows are the nine states with the highest state and local taxes, according to WalletHub. Also included are average real estate and income tax bills and ranks.

9. Iowa

Des Moines

Average State and Local Taxes: $6,730

Real Estate Tax Rank: 38th ($2,542)

Income Tax Rank: 34th ($1,594)

8. Ohio

Cincinnati

Average State and Local Taxes: $6,834

Real Estate Tax Rank: 40th ($2,677)

Income Tax Rank: 38th ($1,755)

7. Michigan

Detroit

Average State and Local Taxes: $6,902

Real Estate Tax Rank: 44th ($3,168)

Income Tax Rank: 37th ($1,744)

6. New York

New York

Average State and Local Taxes: $7,062

Real Estate Tax Rank: 41st ($2,734)

Income Tax Rank: 40th ($1,833)

5. Connecticut

Hartfor

Average State and Local Taxes: $7,115

Real Estate Tax Rank: 46th ($3,301)

Income Tax Rank: 19th ($1,182)

4. Rhode Island

Rhode Island

Average State and Local Taxes: $7,159

Real Estate Tax Rank: 42nd ($2,779)

Income Tax Rank: 20th ($1,209)

3. Wisconsin

Madison

Average State and Local Taxes: $7,159

Real Estate Tax Rank: 48th ($3,398)

Income Tax Rank: 42nd ($1,871)

2. Nebraska

Omaha

Average State and Local Taxes: $7,298

Real Estate Tax Rank: 45th ($3,228)

Income Tax Rank: 24th ($1,329)

1. Illinois

Chicago

Average State and Local Taxes: $7,719

Real Estate Tax Rank: 50th ($3,939)

Income Tax Rank: 30th ($1,482)

Read WalletHub’s entire list here.

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