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America's Tax Burden by State Ranked: Some Fare Worse Than California
New report shows Hawaii, New York, and Vermont have the highest total tax burdens nationwide.
Apr. 19, 2026 at 8:58pm
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A new WalletHub report has ranked all 50 U.S. states by total tax burden, revealing that despite its reputation, California is not the state with the highest share of personal income going to taxes. Instead, Hawaii, New York, and Vermont top the list, with residents in those states paying the largest portions of their income to state and local taxes.
Why it matters
The analysis provides a comprehensive look at tax burden across the country, going beyond just income tax rates to measure the total share of personal income paid in property taxes, sales taxes, and other levies. This data is valuable for individuals and families evaluating potential places to live based on overall tax impact.
The details
The report measures tax burden as a percentage of total personal income, a broader metric than just looking at tax rates alone. While California has the highest top marginal income tax rate at 13.3%, it ranks 11th overall in total tax burden. Hawaii leads the nation with a 13.3% tax burden, driven largely by steep sales and excise taxes. New York follows at 12.39%, with Vermont close behind at 11.1%, in part due to the highest property tax burden in the country. At the other end, Alaska has the lowest tax burden at 4.92% of personal income.
- The analysis is based on the 2026 fiscal year.
The players
WalletHub
A personal finance website that conducted the analysis ranking states by total tax burden.
Chip Lupo
A WalletHub analyst who commented on the findings.
What they’re saying
“It's easy to be dismayed at tax time when you see just how much of your income you lose. Living in a state with a low tax burden can alleviate some of that stress.”
— Chip Lupo, WalletHub Analyst
The takeaway
The data highlights the significant variation in how states generate revenue, with some relying more heavily on income taxes, others on property taxes, and others on sales taxes. Residents must weigh these trade-offs when evaluating potential places to live based on overall tax impact.
