US States Ranked by Resident Tax Burden: Hawaii Highest, Alaska Lowest
A recent study by WalletHub has ranked all 50 US states based on the tax burden borne by residents, defined as the proportion of personal income paid toward state and local taxes. The analysis, utilizing data from the nonpartisan Tax Policy Center, examines property, individual income, and sales and excise taxes. The findings reveal significant disparities across the nation, with Hawaii and New York imposing the highest tax burdens on their residents. Conversely, Alaska and New Hampshire rank as the states with the lowest overall tax burdens. Alaska features a total tax burden of just 4.92%, driven by zero state income tax, while New Hampshire follows closely at 5.38%, having recently repealed its tax on dividend and interest income in 2025. The report highlights that while federal taxes apply uniformly, local fiscal policies vary widely, with nine states currently levying no state income tax. This ranking provides taxpayers with clarity on how much of their earnings contribute to local government services, offering insights into the financial implications of residing in different jurisdictions amidst varying economic conditions and tax structures.
Wire timeline
US States Ranked by Resident Tax Burden: Hawaii Highest, Alaska Lowest
A recent study by WalletHub has ranked all 50 US states based on the tax burden borne by residents, defined as the proportion of personal income paid toward state and local taxes. The analysis, utilizing data from the nonpartisan Tax Policy Center, examines property, individual income, and sales and excise taxes. The findings reveal significant disparities across the nation, with Hawaii and New York imposing the highest tax burdens on their residents. Conversely, Alaska and New Hampshire rank as the states with the lowest overall tax burdens. Alaska features a total tax burden of just 4.92%, driven by zero state income tax, while New Hampshire follows closely at 5.38%, having recently repealed its tax on dividend and interest income in 2025. The report highlights that while federal taxes apply uniformly, local fiscal policies vary widely, with nine states currently levying no state income tax. This ranking provides taxpayers with clarity on how much of their earnings contribute to local government services, offering insights into the financial implications of residing in different jurisdictions amidst varying economic conditions and tax structures.
All Content from Business Insider