Below Supernav ↴

AUTO TEST CUSTOM HTML 20240930154503

Study ranks how ‘tax-friendly’ every state is

An analysis by MoneyGeek shows the tax-friendliness of every U.S. state. (Photo: MoneyGeek)

 

Main Area Top ↴

(NEXSTAR) – It’s tax filing season and depending on where you live in the U.S., you could be forking over a very different-sized chunk of your income.

An analysis by MoneyGeek ranked every state by how “tax-friendly” it is. The analysts didn’t just look at income tax – they also factored in property taxes, plus state and local sales taxes.

To determine where people pay the highest tax burden, MoneyGeek looked at a hypothetical average family: a married couple with one kid, earning the median national income of $82,852, owning a $349,400 home. The study breaks down how much this fictional family would pay in taxes in every state.

The states with the lowest tax burden, according to the analysis, were:

  1. Wyoming (estimated taxes: 4% of income or $3,279)
  2. Nevada (estimated taxes: 4.7% of income or $3,879)
  3. Alaska (estimated taxes: 5.4% of income or $4,507)
  4. Florida (estimated taxes: 5.6% of income or $4,632)
  5. Tennessee (estimated taxes: 6.5% of income or $5,377)
  6. Washington (estimated taxes: 6.5% of income or $5,414)
  7. North Dakota (estimated taxes: 6.7% of income or $5,556)
  8. Arizona (estimated taxes: 6.8% of income or $5,665)
  9. South Dakota (estimated taxes: 7.2% of income or $5,938)
  10. Delaware (estimated taxes: 7.3% of income or $6,074)

The states with the highest tax burden were:

  1. Illinois (estimated taxes: 16.8% of income or $13,894)
  2. Connecticut (estimated taxes: 15.1% of income or $12,545)
  3. New Jersey (estimated taxes: 14.3% of income or $11,872)
  4. New Hampshire (estimated taxes: 14.1% of income or $11,694)
  5. New York (estimated taxes: 13.9% of income or $11,495)
  6. Iowa (estimated taxes: 13.8% of income or $11,398)
  7. Wisconsin (estimated taxes: 13.2% of income or $10,976)
  8. Vermont (estimated taxes: 12.6% of income or $10,453)
  9. Nebraska (estimated taxes: 12.6% of income or $10,446)
  10. Michigan (estimated taxes: 12.4% of income or $10,239)

Based on its analysis, MoneyGeek also gave every state a letter grade on its “tax friendliness.” The states with A grades have the lowest tax burden on an “average” family, while the states with D or E grades have the highest tax burden.

MoneyGeek’s estimates only hold true for that hypothetical family of earning about $82,000 a year with a $349,000 house. A family who just bought a $1 million house in California would probably be paying a lot more in taxes, while a single person earning $40,000 in Texas would be paying less.

See the full state-by-state breakdown and the tax burden in your state here.

U.S.

Copyright 2024 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. regular

test

 

Main Area Middle ↴

Trending on NewsNationNow.com

Main Area Bottom ↴