Let's be honest, nobody looks forward to doing their taxes. But as Americans, it is a responsibility that, in theory, all of us share. And for the average American household that means paying more than $8,800 a year in federal income tax, according to a recent report from personal finance website WalletHub. But not all tax burdens are created equal, and that is especially true when it comes to taxes at the local level, which can vary significantly from one state to another. With tax season looming over our heads, we consulted the WalletHub report to see which state pays the highest taxes in America.
Read on to discover how much the median U.S. household* in each state pays in state local taxes every year—ranked here from the lowest amount to the highest. And for how the pandemic may affect your finance filings, check out If You're Waiting on a Stimulus Check, Read This Before Filing Your Taxes.
*According to WalletHub: A "median U.S. household" is assumed to have an annual income of $63,218 (mean third quintile U.S. income); owns a home valued at $217,500 (median U.S. home value); owns a car valued at $24,970 (the highest-selling car of 2020); and spends annually an amount equal to the spending of a household earning the median U.S. income.
50 Alaska
Annual taxes on median U.S. household: $3,694
49 Delaware
Annual taxes on median U.S. household: $3,949
48 Montana
Annual taxes on median U.S. household: $4,494
47 Nevada
Annual taxes on median U.S. household: $5,017
46 Wyoming
Annual taxes on median U.S. household: $5,086
45 Florida
Annual taxes on median U.S. household: $5,204
And for more tax-related news you should know, check out If You Get an Email From the IRS With These 3 Words, Don't Click on It.
44 Utah
Annual taxes on median U.S. household: $5,274
43 Idaho
Annual taxes on median U.S. household: $5,329
42 Colorado
Annual taxes on median U.S. household: $5,396
41 Tennessee
Annual taxes on median U.S. household: $5,513
40 California
Annual taxes on median U.S. household: $5,662
And for the place where things are the least pricey in general, This Is the Cheapest State in America.
39 South Carolina
Annual taxes on median U.S. household: $5,683
38 Oregon
Annual taxes on median U.S. household: $5,686
37 Alabama
Annual taxes on median U.S. household: $5,754
36 Arizona
Annual taxes on median U.S. household: $6,021
35 West Virginia
Annual taxes on median U.S. household: $6,124
34 North Dakota
Annual taxes on median U.S. household: $6,343
33 New Hampshire
Annual taxes on median U.S. household: $6,358
32 New Mexico
Annual taxes on median U.S. household: $6,663
31 Georgia
Annual taxes on median U.S. household: $6,683
30 North Carolina
Annual taxes on median U.S. household: $6,710
29 Louisiana
Annual taxes on median U.S. household: $6,723
28 Hawaii
Annual taxes on median U.S. household: $6,736
27 Virginia
Annual taxes on median U.S. household: $6,783
26 Massachusetts
Annual taxes on median U.S. household: $6,890
25 South Dakota
Annual taxes on median U.S. household: $7,055
24 Missouri
Annual taxes on median U.S. household: $7,111
23 Minnesota
Annual taxes on median U.S. household: $7,128
22 Arkansas
Annual taxes on median U.S. household: $7,134
21 Oklahoma
Annual taxes on median U.S. household: $7,235
20 Maryland
Annual taxes on median U.S. household: $7,261
19 Vermont
Annual taxes on median U.S. household: $7,347
18 Indiana
Annual taxes on median U.S. household: $7,430
17 Maine
Annual taxes on median U.S. household: $7,465
16 Mississippi
Annual taxes on median U.S. household: $7,569
15 Washington
Annual taxes on median U.S. household: $7,601
14 Michigan
Annual taxes on median U.S. household: $7,728
13 Kentucky
Annual taxes on median U.S. household: $7,887
12 Texas
Annual taxes on median U.S. household: $8,083
And for more helpful financial information and exclusive rankings sent straight to your inbox, sign up for our daily newsletter.
11 Rhode Island
Annual taxes on median U.S. household: $8,103
10 New Jersey
Annual taxes on median U.S. household: $8,117
9 Ohio
Annual taxes on median U.S. household: $8,329
8 Iowa
Annual taxes on median U.S. household: $8,334
7 Wisconsin
Annual taxes on median U.S. household: $8,357
6 Nebraska
Annual taxes on median U.S. household: $8,386
5 Kansas
Annual taxes on median U.S. household: $8,488
4 Pennsylvania
Annual taxes on median U.S. household: $8,830
3 New York
Annual taxes on median U.S. household: $8,900
2 Connecticut
Annual taxes on median U.S. household: $9,379
1 Illinois
Annual taxes on median U.S. household: $9,488
And if you live in a high-tax state you might be envious of those that don't, so make sure to check out This Is the Most Jealous State in America.
Filed UnderFinance • News • State FactsRead This NextHere's How Your Stimulus Check Affects Your Taxes
Here's what you should know about when to file your 2020 tax return.March 17, 2021Are You Missing Stimulus Check Money?
Some Americans are reporting that they received less money than expected.March 22, 2021The Smart Man's Guide to Spotting Counterfeit Wine
That $2,000 bottle of Bourdeaux might be worth $20. Here’s how to be sure it’s the real thing.April 13, 2017The 5 Best Light-Bodied Red Wines for Extending Your Summer
Don't let September ruin a killer party. August 25, 201717 Insanely Cool New Luxury Bicycles for Spring
Meet the bikes that cost more than a car.March 31, 2017Best Life Essentials
You deserve the best. Live life to the fullest with these ultimate essentials.October 21, 2016This Is the Safest Way to Store Meat
Don't let that filet set you up for food poisoning. February 7, 2018Here Are the 10 Wealthiest Cryptocurrency Millionaires Under 40
Including one guy who is only 24 years-old!February 7, 2018This Is the Safest Way to Clean Your Floors
Keep your floors clean and looking brand new with this easy tip. February 8, 201815 Things Your Real Estate Agent Won't Tell You
These are sure to shock even the most intrepid homebuyers. February 14, 2018
