With tax season in full swing and the final day to file taxes being right around the corner, many Americans are left wondering how their tax circumstances compare to other Americans across the country. Below is a list of the top ten best and worst states to live in when it comes to combined tax burdens of income tax and sales tax.
Best States for Taxes
(Tie below for #1)
- North Dakota Highest Income Tax: 2.9% State Sales Tax: 5%
- Tennessee No Income Tax State Sales Tax: 7%
- Washington No Income Tax State Sales Tax: 6.5%
- Texas No Income Tax State Sales Tax: 6.25%
- Florida No Income Tax State Sales Tax: 6%
- Nevada No Income Tax State Sales Tax: 4.6%
- South Dakota No Income Tax State Sales Tax: 4.5%
- Wyoming No Income Tax State Sales Tax: 4%
- (Tie) Alaska & New Hampshire No Income Tax No Sales Tax
Worst States for Taxes
- Oregon Highest Income Tax: 9.9% No State Sales Tax
- Maine Highest Income Tax: 7.15% State Sales Tax: 5.5%
- New York Highest Income Tax: 8.82% State Sales Tax: 4%
- Vermont Highest Income Tax: 8.75% Sales Tax: 6%
- Washington D.C. Highest Income Tax: 8.95% State Sales Tax: 6%
- Iowa Highest Income Tax: 8.98% State Sales Tax: 6%
- New Jersey Highest Income Tax: 8.97% State Sales Tax: 6.625%
- Hawaii Highest Income Tax: 11% State Sales Tax: 4%
- Minnesota Highest Income Tax: 9.85% State Sales Tax: 6.875%
- California Highest Income Tax: 13.3% State Sales Tax: 7.25%
Though there are many factors that go into taxes, this list was compiled using only the highest state income tax bracket and sales tax.
Did your state make the list?
Sources:
- taxfoundation.org
- avalara.com/taxrates/en/
- Research: Cody Philips