States with the highest (and lowest) tax rates

The most taxed states in America

Some states in the US have higher taxes than others. Hawaii, for instance, has the highest total tax burden in the country at 13.9%, whereas Alaska has the lowest overall tax burden at 4.9%. New York has the highest individual income tax burden; and eight states have no individual income tax. See a map of the most-taxed US states here.

Hawaii and New York have the highest tax burdens out of all US states, both exceeding 12% of income

The term "tax burden" in this case refers to property, income, sales, and excise taxes as a share of total personal income. Alaska and New Hampshire have the lowest total tax burdens in the US, both falling below 6%.

See how income taxes in the US compare to those of other countries.

What America's 1% pays in taxes, by state

In the US, the top 1% of earners contribute 45% of all personal income taxes collected nationwide. But not all states are created equal when it comes to income tax. Some states are more dependent on the 1% than others for tax revenue. SmartAsset recently examined IRS tax return data to determine exactly how much the top 1% of earners in each state paid in taxes. Find your state here.

Read why some states are considering imposing a flat tax rate that isn't adjusted by income

Wisconsin was the first US state to impose a state income tax, close in time to when the federal income tax went into effect. Many states followed suit, but nine states to this day still don't levy wage-related taxes.

Map of each state's largest tax revenue source

While America’s federal government primarily raises revenue through personal and corporate income taxes, it's a different story for each of the 50 states. This map shows how every state raises tax revenue for government activities. New York and California, for instance, raise most of that money through personal income taxes, whereas Texas and Florida have sales tax as their largest sources of tax revenue. Click here to see the map.

More than 15 states have estate or inheritance taxes—but Maryland is the only state with both

Eighteen states, and Washington, DC, have estate or inheritance taxes in place. Tax rates and thresholds vary per state, but most are less than the federal estate tax rate and threshold. This means an estate doesn't have to be as lucrative to be subjected to the taxes.

Since 1913, Americans have paid income taxes at varying rates

In the 2020s, the top marginal tax rate has floated around 37%, relatively lower than previous eras. Some have called for boosting the rate significantly to tax the highest earners.

Understanding the low corporate tax rate in the US

Corporate taxes, which make up roughly a third of the federal government's revenue, have been calculated using a flat 21% rate since the Tax Cuts & Jobs Act of 2017. The current rate is considered low both by historic standards (it averaged over 50% in the 1950s and 1960s) and compared to other countries.

Alaska has the highest lifetime credit card debt of all US states at $484,620

That's 21.8% above the national average, partly due to Alaska's high cost of living and remote nature, which makes shipping in food and fuel more expensive. Iowa had the lowest average lifetime credit card debt out of all the states in the US at $319,740.

Only 5 states have inheritance taxes

Unlike estate taxes, inheritance taxes paid by the beneficiary of the estate (the person who inherits the deceased person's financial assets). The federal government doesn't levy an inheritance tax, but five states do. They all have varying tax rates and rules.

The hardest US states to save money in, mapped

According to data from Bankrate, Tennessee ranks as the easiest state in the US to save money, while Hawaii is the most difficult for those attempting to build a savings fund. This map of the US shows where all the states rank in-between. Some may surprise you. See the map here.

The highest 2024 federal income tax bracket covered income upward of $731,201 for married couples filing jointly

To understand what you would owe on short-term capital gains and to visualize the favorability of long-term tax rates, you need to know how your traditional income is taxed at the federal level. A breakdown explores the different brackets for 2024, separated by filing status.

Americans between the ages of 45 and 55 pay nearly 30% of all income taxes, paying an average tax rate of around 17%.

Warren Buffett paid a lower effective tax rate than his secretary

While wages and salaries are taxed progressively at rates up to 37%, long-term investments are taxed at lower rates: 0%, 15%, or 20%. For wealthy individuals like Buffett, whose income mainly comes from investments, this means paying a lower effective tax rate than someone earning a salary.

See how income levels have changed in each state since 2010

Since 2010, the median household income has increased by 22% on average. Montana, the state with the largest growth rate, saw a 42.9% increase, while New Mexico saw the lowest income growth rate at 2.3%.

Visualizing US state taxes in seven charts

Ever wondered how your state’s tax system compares to others? Here’s an overview of the US state tax system based on seven visualizations.

Illinois has more local governments than any other state

As of 2022, there were a reported total of 90,837 local government units across the US. Illinois had the highest number with 6,930, followed by Texas with 5,533. Explore all the data from the 2022 Census of Governments, which takes place every five years.

Massachusetts is the state with the highest median household income for young Americans at $123.2K per year

Americans ages 25 through 44 make more in some states than others. While Massachusetts took the top billing, Mississippi came in last place out of all 50 states at $66K per year—a roughly 87% difference. However, it's important to remember that the cost of living in many of the highest-earning states in the US is significantly higher than the cost of living in the lowest-earning states.

Poverty rates by US state

As of 2022, 37.9 million people in the US were living in poverty. But those people aren't evenly distributed among the 50 states. Some states and regions of the country are more impoverished than others. For instance, US poverty rates are relatively higher in the South than they are in the North. See the state-by-state breakdown with this map.

See comparisons of different countries' taxation strategies

Taxes are a major revenue source for most countries, and how each government taxes citizens often reflects the country's economy. Developed countries tax at much higher rates than developing ones, and as a country grows its GDP, it also typically grows the proportional percentage of taxes it gains from its citizens.

See the average income in every US state

DC residents make an average of $108K a year, but residents of nearby state West Virginia earn the country's lowest average annual income of just $55K.

Watch this video to learn how US tax brackets actually work.

At just over $1K, Mississippi has the lowest average weekly wage in the country.

The wealthiest person in every US state in 2021

Alongside Elon Musk and Jeff Bezos, who are the richest people in the U.S.? This map reveals the wealthiest billionaire in each U.S. state.

See where your state ranked in an analysis of the best public school systems in the US.

Tipped workers in ‘$2.13 states’ experience an estimated 18.5% poverty rates

In so-called “equal treatment states,” where tipped workers are subject to the normal federal minimum wage or higher rather than the tipped minimum wage, the poverty rate is 11.1%.

Based on the number of patents, venture capital investment, and research and development spending per capita in 2025, America's most innovative states are California, Massachusetts, and Delaware.

The 10 best US states to retire in, ranked

Out of all 50 states, Delaware was recently deemed the number one state for a happy retirement. That ranking is based on a few factors, including weather, affordability, healthcare, crime, and more. Want to know what other states ranked in the top 10 as of 2024? Click here to find out.

Over a century ago, fewer than 1% of Americans paid income taxes—but the cost of World War II prompted the federal government to greatly expand the number of people required to pay income taxes.

See which states contribute the most and least to the federal government.

25% of US households had no regular income as of 2024

Some states had higher shares of no-income households than others: West Virginia, for instance, had a national high of 34% of households with no income. These states tend to have older populations, higher rates of disability, and lower median incomes overall. In such contexts, a larger portion of households rely on non-earned income sources or report no income during the survey period.

States with the most million-dollar homes

As of 2024, the US has 621 cities where a typical home costs $1M or more. California has more million-dollar cities than any other state by a long shot, with 218. New York comes in second with 76. Want to see where other states rank? Check out this map to learn more.

Ranking America's healthiest and unhealthiest cities

Compiling data from the 180 most populated cities in the US, WalletHub evaluated which of those metros are the healthiest using 43 health indicators, from the average cost of a medical visit to total vaccination rates.

Estate taxes are paid out of the estate, while inheritance taxes are paid by beneficiaries

When a person dies, any estate taxes owed are paid out of their finances before being transferred to their beneficiaries—unlike inheritance taxes that are paid by the beneficiaries themselves. In addition to a federal estate tax, 12 states and the District of Columbia have a state estate tax with varying rates.

The unemployment rate is calculated using a monthly survey that the Bureau of Labor Statistics uses to identify those who are employed or actively looking for work.

Death taxes are placed on a deceased person's estate

Death taxes can include liquid cash, property, stocks, or other financial assets they owned. There are two main types of death taxes in the US: the estate tax and inheritance tax. Death taxes are levied at the federal and state level, but are targeted towards the rich.

As of 2026, the majority of US states have unsafe radon exposure levels

Alaska, South Dakota, Pennsylvania, Ohio, and Washington top the list of states with exposure levels above 4 picocuries per liter for this naturally occurring radioactive gas. While these state-level averages vary from one county, municipality, and home to another, the EPA encourages those in the highest-risk states to test their homes.

See a breakdown of every state's portion of the entire US gross domestic product.

Some policymakers take issue with long-term capital gains being taxed at a preferential rate compared to income from paid work

The concept of taxing unrealized capital gains—when an asset’s value increases but has yet to be sold—has been increasingly debated. Other policymakers in recent years have supported lowering the highest long-term capital gains tax rate and are generally opposed to levying taxes on unrealized capital gains.

The value of a dollar differs from state to state

Did you know that $100 is worth 26% less in California than in Arkansas? The value of a dollar isn't consistent in every US state due to a multitude of factors, such as taxes and other varying cost-of-living differences.

The income needed to raise a family by US state

This map shows the annual household income needed to raise a family of four in each US state. West Virginia is the least expensive state on the map at $82K per year. These numbers were calculated based on Bureau of Labor Statistics data which factored in how annual living expenses such as housing, transportation, and groceries differ from state to state. See the map here.

Individual income taxes are the federal government's primary revenue source, see a tracker that breaks down where the rest of the budget comes from

The US government historically makes nearly half of its total revenue last year from individual income taxes. But the US makes also makes money from a variety of other sources, including Medicare taxes and corporate income taxes. However, the federal government has run a deficit since 2001—reaching a peak of $3.13T in 2020.

Historically, only about 1% to 2% of Americans had to pay the federal estate tax

Recent IRS data shows that between 2011-16, that number dropped even lower: The federal estate tax only impacts about 0.2% of Americans. Death taxes typically only impact the rich, and the federal estate tax is no exception.

80% of Americans are bothered that some wealthy people don't pay their fair share of taxes

That's according to data from Pew Research Center. While most people are primarily taxed on their wages, many people in America's 1% derive much of their income from investments instead, which are often taxed at preferential capital gains rates. This structure was shaped by a series of legislative cuts that began in earnest with the 1978 Revenue Act and the 1981 Economic Recovery Tax Act.

The countries with the highest wealth per person, ranked

When looking at countries with the highest average wealth per person, the United States comes in at number three (with $564,862 per person). But the US doesn't even make the top 10 when looking at the median wealth per person rather than the average, which is perhaps a more accurate version of the data. Explore the numbers here.

The United States currently ranks number one for countries that enable the most financial secrecy

Financial secrecy refers to complex systems that make it easy for people and companies to hide assets. High levels of financial secrecy are associated with illegal activity, like drug trafficking and money laundering. Lax regulations around reporting who owns trusts, real estate, and businesses impact the United States' global financial secrecy ranking.

See the religious breakdown of your state and how it compares to the rest of the country.

The Pew Research Center conducted a survey of religion across all 50 states and Washington, DC. This data visualization allows you to select any state to see how religious it is compared to the rest of the country.

Many 'cheap' retirement destinations contain hidden costs

Considering factors outside of housing and state income tax is crucial when thinking of an inexpensive place to retire. High energy bills, grocery tax, and insurance premiums are just a few things to look out for when picking where to live.

America's happiest cities in 2023

WalletHub analyzed 180 cities using thirty indicators—like depression rate and average leisure time—to rank each city by the happiness of its residents. Check out the list to see how your city ranks.