Best States for Taxes and Worst

10 Best States for Taxes… and the 10 Worst

April 12, 2019 10:53 am

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)

  1. North Dakota
    Highest Income Tax: 2.9%
    State Sales Tax: 5%
  2. Tennessee
    No Income Tax
    State Sales Tax: 7%
  3. Washington
    No Income Tax
    State Sales Tax: 6.5%
  4. Texas
    No Income Tax
    State Sales Tax: 6.25%
  5. Florida
    No Income Tax
    State Sales Tax: 6%
  6. Nevada
    No Income Tax
    State Sales Tax: 4.6%
  7. South Dakota
    No Income Tax
    State Sales Tax: 4.5%
  8. Wyoming
    No Income Tax
    State Sales Tax: 4%
  9. (Tie) Alaska & New Hampshire
    No Income Tax
    No Sales Tax

Worst States for Taxes

  1. Oregon
    Highest Income Tax: 9.9%
    No State Sales Tax
  2. Maine
    Highest Income Tax: 7.15%
    State Sales Tax: 5.5%
  3. New York
    Highest Income Tax: 8.82%
    State Sales Tax: 4%
  4. Vermont
    Highest Income Tax: 8.75%
    Sales Tax: 6%
  5. Washington D.C.
    Highest Income Tax: 8.95%
    State Sales Tax: 6%
  6. Iowa
    Highest Income Tax: 8.98%
    State Sales Tax: 6%
  7. New Jersey
    Highest Income Tax: 8.97%
    State Sales Tax: 6.625%
  8. Hawaii
    Highest Income Tax: 11%
    State Sales Tax: 4%
  9. Minnesota
    Highest Income Tax: 9.85%
    State Sales Tax: 6.875%
  10. 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