How Does Your State Compare in the New Study on State Tax Burdens?

September 12, 2025
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Where you live can dramatically affect your overall tax bill. For retirees, remote workers, and business owners considering relocation, understanding state tax burdens is key to making informed decisions.

A recent WalletHub study looked at tax burden—the percentage of total personal income that residents pay in taxes—and ranked states by income, property, and sales/excise tax levels. Here’s a snapshot:

Income Taxes

  • Highest: New York (5.76%), California (4.87%), Maryland (4.47%), Oregon (4.39%), Hawaii (4.18%)
  • No State Income Tax: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming

Keep in mind, states with no income tax often offset revenue with higher sales or excise taxes. For example, Washington has no income tax but a 5.97% sales/excise tax burden—one of the highest in the U.S.

Property Taxes

Every state charges property taxes, but rates vary significantly:

  • Highest: Vermont (5%), New Hampshire (4.87%), New Jersey (4.67%)
  • Lowest: Alabama (1.35%), Arkansas (1.56%), Oklahoma (1.62%)

Sales & Excise Taxes

These taxes, collected on retail purchases or embedded in product prices, also differ greatly by state:

  • Highest: Hawaii (7.17%), Nevada (6.47%), Washington (5.97%)
  • Lowest: New Hampshire (<1%), Delaware (1.02%), Montana (1.3%)

Overall Tax Burden

Lowest overall:
Alaska (4.93%), Wyoming (5.79%), New Hampshire (5.94%), Tennessee (6.38%), South Dakota (6.46%)

Highest overall:
Hawaii (13.92%), New York (13.56%), Vermont (11.53%), California (11%), Maine (10.64%)

What This Means for You

Taxes are just one factor in deciding where to live or retire, but they can significantly impact your financial plan. Beyond income, property, and sales taxes, you’ll also want to consider:

  • Estate and inheritance taxes
  • Business tax implications
  • Special rules on retirement income

If you move, take time to establish legal domicile in your new state—buy or lease a home, update registrations, and change your legal address—to avoid potential disputes over tax obligations.

Plan with Confidence

Tax laws change, and the details matter. Before making a move or major investment decision, consult Bland  to evaluate your full financial picture and make informed choices.

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