- Days left

NJ, NY top list of highest state+local taxes; where does your state fall?

Hate high taxes? Then the just-released results of a study by the Tax Foundation might help you decide where to live. The study compiles, state by state, the actual state plus local tax burden for each resident.

Ten highest state/local tax burdens are found in

  1. New Jersey, 11.8%
  2. New York, 11.7%
  3. Connecticut, 11.1%
  4. Maryland, 10.8%
  5. Hawaii, 10.6%
  6. California, 10.5%
  7. Ohio, 10.4%
  8. D.C., 10.3%
  9. Vermont, 10.3%
  10. Minnesota, 10.2%

The ten best 'bargain' states for state/local taxes:

  1. Alaska, 6.4%
  2. Nevada 6.6%
  3. Wyoming 7.0%
  4. Florida 7.4%
  5. New Hampshire 7.6%
  6. South Dakota 7.9%
  7. Tennessee 8.3%
  8. Louisiana 8.4%
  9. Texas 8.4%
  10. Arizona 8.5%


What does this mean in real money? These states' residents, based on the state's per capita income, pay this amount less than the national average:

  1. Mississippi $(1,459.24)
  2. Alaska $(1,420.83)
  3. West Virginia $(1,303.16)
  4. South Dakota $(1,203.50)
  5. New Mexico $(1,193.97)
  6. South Carolina $(1,175.77)
  7. Alabama $(1,164.65)
  8. Tennessee $(1,131.17)
  9. Montana $(1,128.44)
  10. Kentucky $(1,064.77)

These pay more than the national average:

  1. District of Columbia $2,992.55
  2. Connecticut $2,718.12
  3. New Jersey $2,329.05
  4. New York $2,146.10
  5. Maryland $1,399.93
  6. Massachusetts $1,090.16
  7. California $716.49
  8. Hawaii $637.63
  9. Minnesota $410.17
  10. Virginia $378.63

How does this impact the standard of living in these states? The educational system? The infrastructure? At a glance, there seems to be a clear progressive nature to these taxes.

Among those who might be most interested in this list are retirees on a fixed income. Looks like the South has tax bargains galore.

Learn about investing from the comfort of your own home.

Portfolio Basics

Take the first steps to building your portfolio.

View Course »

Investment Strategies

Learn the strategies you need to build a winning portfolio

View Course »

TurboTax Articles

5 Hidden Ways to Boost Your Tax Refund

Most of us are looking for ways to pay no more than we owe in taxes, or even boost our tax refunds. Here are five strategies that go beyond the obvious with tried-and-true ways to reduce your tax liability.

What, Me Worry? Last Minute Taxes

According to the Internal Revenue Service, 20-25% of all Americans wait until the last two weeks before the deadline to prepare their tax returns. At that late date, there are only two things you can do: File your taxes pronto, or request a tax extension.

Can't File by the Deadline? Top 3 Reasons to File a Tax Extension

The Internal Revenue Service allows taxpayers to file for a 6-month extension if they need more time to prepare their tax return. You can obtain a tax extension for any reason; the IRS grants them automatically as long as you complete the proper form on time. Check your state tax laws; some states accept IRS extensions while others require you to file a separate state extension form.

Add a Comment

*0 / 3000 Character Maximum