With Tax Day fast approaching and Republicans planning the first major overhaul of the U.S. tax code in three decades, the personal-finance Web site WalletHub today released its 2017 Tax Burden by State report.
One simple ratio known as the “tax burden” helps cut through the complex tax system. Not to be confused with tax rates, which vary widely based on an individual’s particular circumstances, tax burden measures the exact proportion of total personal income that residents pay toward state and local taxes. And it isn’t uniform across the U.S., either.
To determine which states’ residents bear the biggest tax burdens, WalletHub’s analysts compared the 50 states across the three tax types that make up state tax burden — property taxes, individual income taxes, and sales and excise taxes — as a percentage of total personal income in the state.
- 10th – Overall Tax Burden (9.52%)
- 30th – Property Tax Burden (2.72%)
- 5th – Individual Income Tax Burden (3.44%)
- 26th – Total Sales & Excise Tax Burden (3.36%)
For the full report go here.
