Your choice of state can almost triple your tax burden. Do you know what your home base is costing you?

In one state, residents pay more than 13% of their incomes in taxes, while in another, it's less than 5%. That's according to recent WalletHub analysis, which, drawing on data from the Tax Policy Center, ranked all 50 states based on how much of their inhabitants' income goes to taxes (1).

Here are the five states with the highest and lowest taxes in America.

The 5 states with the highest tax burden

1. Hawaii (13.3%) In Hawaii, residents pay more than 13% of their income in taxes. The biggest driver is sales and excise taxes, which alone account for nearly 7.5% of income — the highest in the nation. Add in property taxes and the country's seventh-highest income tax burden, and the Aloha State becomes the most expensive from a tax perspective.
2. New York (12.4%) New York's income tax burden is the second-highest in the nation, swallowing up about 4.65% of residents' income, while, at 4.22%, its property tax burden is the country's fourth-highest.
3. Vermont (11.1%) Vermont has the highest property tax burden in the U.S., at nearly 4.9% of income. Its income and sales tax burdens, meanwhile, rank 14th and 26th in the country, respectively.
4. New Mexico (10.8%) New Mexico's place in the top four is driven by its sales and excise tax burden, which, at 6.28% of income, is the third-highest in the country.
5. Maine (10.0%) Maine's above-average property and income taxes push it into the top five. Its property tax burden ranks fifth at 3.95%, while its income tax burden of 2.71% ranks 15th.

The 5 states with the lowest tax burden

1. Alaska (4.9%) Alaska has the lowest tax burden in the country. Residents pay no state income tax, and, at 1.60%, its sales and excise tax burden is among the lowest nationwide. That keeps its overall burden under 5%, despite a relatively high property tax burden of 3.32%.
2. New Hampshire (5.4%) New Hampshire has the lowest sales and excise tax burden in the country, along with a very low income tax burden of just 0.13%. However, it relies more heavily on property taxes, which are among the highest in the nation (2).
3. Tennessee (6.2%) Tennessee also doesn't levy an income tax on residents and has one of the lowest property tax burdens. However, a sales tax burden of 4.61% partially offsets those savings.
4. Florida (6.3%) Florida's lack of a state income tax is a major draw for residents and retirees. Property and sales taxes still apply, but the absence of income tax keeps the overall burden among the lowest.
5. Delaware (6.3%) Delaware benefits from having the second-lowest sales tax burden and fourth-lowest property tax burden, although this is partly offset by an income tax burden of 3.62%, which is the third-highest in the country.

Your state could be costing you thousands more

Based on WalletHub's numbers, a household spending around $25,000 a year on taxable goods could pay roughly $1,600 less in sales taxes living in Delaware compared to Hawaii. Meanwhile, according to Smartasset's income tax calculator, before considering deductions and credits, a single person earning $100,000 could pay about $4,892 more in state income taxes in New York than in a state with no additional income tax, such as Alaska or Tennessee.

Property taxes can make an even bigger difference. According to Smartasset's property tax calculator, on a $350,000 home, a homeowner in Vermont could pay around $6,913 a year in property taxes, compared to roughly $1,068 in Alabama (3). And that's on the same home value. In reality, median home prices are often lower in low property tax states, which can widen the gap further (4).

Higher earners may feel income taxes most, while homeowners in expensive markets are more exposed to property taxes. Sales taxes, meanwhile, tend to hit those who spend more in-state, particularly on non-essential goods.

But that doesn't necessarily mean people should automatically prioritize low-tax states. Higher-tax states often use that revenue to fund public services like infrastructure, health care and education.

Lower-tax states, conversely, may offer fewer services or shift the burden elsewhere.

Article Sources

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WalletHub (1); Tax Foundation (2); SmartAsset (3) Bankrate (4)