An analysis performed by the Tax Foundation from the Census Bureau's 2021 American Community Survey found 11 counties with median property tax payments exceeding $10,000. Property tax typically falls under local, not state, jurisdiction. States with the highest and lowest property taxes Sales and property taxes also affect a state’s affordability.

The states vary in their personal income tax floors, deductions, exemptions, credits, and definitions of taxable income. Personal income tax rates do not tell the whole state tax story. However, these states with the lowest taxes on income can be a good place to start looking for a more affordable location. The Retirement Living Information Center states that figuring your total tax burden, including sales and property taxes, can give you a more accurate reading on affordability, especially if you're on a fixed income. Low personal income tax rates can be misleading a lack of available tax deductions, for example, can raise the effective rate you pay. Washington also does not tax wage income, but it taxes capital gains at the rate of 7%.Īmong the states that tax income, North Dakota’s 2.9% marginal tax rate is the lowest in the nation, making the Peace Garden State the 10th lowest income taxed state for 2023. New Hampshire doesn’t tax income from wages, but it taxes dividends and interest income at the rate of 4%. Seven states have no personal income tax: 10 states with the lowest personal income tax rates The top 10 highest income tax states (or legal jurisdictions) for 2023 are:Įach of these states has a personal income tax floor, deductions, exemptions, credits, and varying definitions of taxable income that determine what a citizen actually pays. This includes a 1% mental health services tax on personal income over $1 million. 10 states with the highest personal income tax ratesĪ comparison of 2023 tax rates compiled by the Tax Foundation ranks California as the top taxer with a marginal tax rate (the maximum statutory tax rate) of 13.3% rate. Weighing the tax landscape against your financial picture could help you stretch your dollars further. As a result, identifying the states with the lowest taxes might be a smart financial move to make.Ĭurrently, 43 states and the District of Columbia levy individual income taxes. Often, the biggest tax ticket citizens face after paying the Internal Revenue Service is the one their state presents. Where you live can help or hinder your ability to make ends meet.Ī myriad of taxes - such as property, license, state and local sales, inheritance, estate, and excise taxes - can eat away at your income. 'Location, location, location' is a focus that applies to more than just housing.

The states with the lowest total sales taxes are Delaware 0%, Montana 0%, New Hampshire 0%, Oregon 0%, and Alaska 1.813%.The states with the highest combined state and local sales taxes include Tennessee 9.548%, Louisiana 9.547%, Arkansas 9.443%, Washington 9.397%, and Alabama 9.237%.Seven states have no personal income tax, including Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming.The states with the highest income tax for 2023 include California 13.3%, Hawaii 11%, New York 10.9%, New Jersey 10.75%, District of Columbia 10.75%, Oregon 9.9%, and Minnesota 9.85%.

Massachusetts income tax brackets 2021