New Map Reveals States with Highest Tax Burdens

Personal finance site WalletHub ranks states based on share of income paid in taxes

Apr. 1, 2026 at 2:40pm

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A new study from personal finance website WalletHub has analyzed the tax burdens across U.S. states, finding that Hawaii residents pay the highest percentage of their income in state and local taxes at 13.3%, followed by New York at 12.4%. Conversely, Alaska has the lowest tax burden at just 4.9% of income. The analysis looked at property taxes, individual income taxes, and sales and excise taxes to determine each state's overall tax burden.

Why it matters

Understanding the tax burden in different states can help individuals and families make more informed decisions about where to live and work. High tax states may be less attractive for residents, while low tax states could draw more people and businesses. This data provides valuable context around the financial realities of living in various parts of the country.

The details

According to the WalletHub study, Hawaii's high tax burden is driven by a 7.5% sales and excise tax, 3.2% income tax, and 2.6% property tax. New York follows closely with a 12.4% total tax burden. At the other end of the spectrum, Alaska has no state income tax and relatively low property and sales taxes, resulting in the nation's lowest tax burden. Oregon was singled out as having the highest individual income tax at 4.8% of income, while Vermont has the highest property tax at 4.9% of income.

  • The 2025 tax filing season is currently underway, with the federal deadline of April 15 approaching.

The players

WalletHub

A personal finance website that conducted the analysis on state tax burdens.

Chip Lupo

A WalletHub analyst who commented on the findings.

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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. Some states charge no income tax or no sales tax, although all states have some form of property taxes and excise taxes.”

— Chip Lupo, WalletHub Analyst

What’s next

The IRS reports that the average tax refund so far this season is up 11% compared to last year, providing a potential economic boost in the coming months.

The takeaway

This study highlights the significant variations in tax burdens across the United States, with some states like Hawaii and New York requiring residents to pay over 12% of their income in state and local taxes, while others like Alaska have a much lower overall tax burden. These differences can be an important factor for individuals and families considering where to live and work.