Where Americans Are Paying the Most State and Local Taxes: All 50 States Ranked

Between sales, property, capital gains, income and other taxes, the federal government collected $4.9 trillion in revenue in fiscal 2022. At an individual level, Americans pay over $10,000 in federal taxes each year on average – not a trivial amount for the typical household.

On top of federal taxes, state and local governments levy their own taxes to raise revenue and fund public works and services. However, exactly what they choose to tax, and by how much, varies considerably, and in some parts of the country, Americans pay far more than others. 

Using data from the Tax Foundation, an independent non-profit tax policy research organization, 24/7 Wall St. identified the states where people pay the most state and local taxes. Figures in this story do not include federal taxes. 

It is important to note that local tax rates – particularly property and sales taxes – can vary within a state. But based on local averages, combined with taxes levied at the state level, the amount Americans pay in non-federal taxes ranges from about $2,900 to over $12,000 across the 50 states. 

In nearly half of all states – 24 out of 50 – the largest share of state and local tax revenue comes from property taxes. Property taxes are typically paid as a percentage of the value of assets like land, houses, and even cars or boats in some circumstances. Many of the states where property taxes tend to be higher are some of the same states with the highest overall tax burden. (These are the states with the highest property taxes.)

Most states levy a personal income tax – but some do not, and in those places, the overall tax burdens tend to be lower than average. The states with no individual income tax make up for lost potential revenue in other areas. Florida, for instance, benefits from sales tax revenue through its tourism industry. Alaska, levies taxes on resource extraction, specifically oil and gas. Of the seven states with no income tax, six rank in the bottom half of the 50 states by per capita tax burden.

Because taxes are levied as a percentage of income, spending, or asset value, the states where people pay the most taxes tend to have higher-earning populations. Notably, each of the five states with the highest average state and local tax bill are also the five wealthiest states, based on per capita income. (This is how much you need to earn to be middle class in your state.)

Click here to see the states where Americans are paying the most taxes to their state and local governments.

Click here for a detailed methodology.

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