State Tax Comparison: All 50 States Ranked (2026)
Data Notice: Figures, rates, and statistics cited in this article are based on the most recent available data at time of writing and may reflect projections or prior-year figures. Always verify current numbers with official sources before making financial, medical, or educational decisions.
State Tax Comparison: All 50 States Ranked (2026)
This article is for informational purposes only and does not constitute tax advice. Consult a qualified tax professional for your specific situation.
Where you live in the United States has a profound impact on how much of your income you keep. A household earning ~$150,000 in California faces a combined state and local tax burden approximately $12,000–$15,000 higher per year than the same household in Texas or Florida. But the comparison is not as simple as “no income tax equals low taxes.” States without income taxes often compensate with higher property taxes, sales taxes, or both. Texas, for example, has no income tax but imposes effective property tax rates of approximately ~1.60%–~1.80% — among the highest in the nation.
This guide ranks all 50 states by total tax burden, breaks down the three major state and local tax categories (income, sales, and property), and identifies the best and worst states for retirees, business owners, high earners, and families. We use the most recent available data, adjusted for 2026 projections where applicable.
Overall State and Local Tax Burden: All 50 States Ranked
The following ranking uses total state and local tax burden as a percentage of income, based on data from the Tax Foundation, Census Bureau, and state revenue departments. This includes income taxes, property taxes, sales taxes, and all other state and local taxes and fees.
| Rank | State | Total Tax Burden (% of Income) | Income Tax | Sales Tax | Property Tax |
|---|---|---|---|---|---|
| 1 (Lowest) | Alaska | ~5.4% | None | None (local only, avg ~1.76%) | ~1.04% |
| 2 | Wyoming | ~6.1% | None | ~4.0% | ~0.56% |
| 3 | Tennessee | ~6.3% | None (interest/dividends tax phased out) | ~9.55% (combined avg) | ~0.64% |
| 4 | South Dakota | ~6.4% | None | ~6.40% (combined avg) | ~1.08% |
| 5 | Florida | ~6.5% | None | ~7.02% (combined avg) | ~0.86% |
| 6 | Nevada | ~6.6% | None | ~8.23% (combined avg) | ~0.55% |
| 7 | New Hampshire | ~6.7% | Limited (interest/dividends, phasing out) | None | ~1.86% |
| 8 | Texas | ~6.9% | None | ~8.20% (combined avg) | ~1.68% |
| 9 | Washington | ~7.0% | ~7.0% capital gains only | ~9.29% (combined avg) | ~0.87% |
| 10 | North Dakota | ~7.2% | ~0%–~2.50% | ~6.96% (combined avg) | ~0.98% |
| 11 | Montana | ~7.4% | ~1.0%–~6.75% | None | ~0.74% |
| 12 | Delaware | ~7.5% | ~2.2%–~6.6% | None | ~0.59% |
| 13 | Colorado | ~7.6% | ~4.40% (flat) | ~7.81% (combined avg) | ~0.51% |
| 14 | Idaho | ~7.7% | ~5.8% (flat) | ~6.02% | ~0.63% |
| 15 | Utah | ~7.8% | ~4.65% (flat) | ~7.19% (combined avg) | ~0.58% |
| 16 | Arizona | ~7.8% | ~2.5% (flat) | ~8.37% (combined avg) | ~0.62% |
| 17 | South Carolina | ~7.9% | ~0%–~6.5% | ~7.43% (combined avg) | ~0.57% |
| 18 | Georgia | ~8.0% | ~1.0%–~5.49% | ~7.37% (combined avg) | ~0.90% |
| 19 | Alabama | ~8.0% | ~2.0%–~5.0% | ~9.24% (combined avg) | ~0.41% |
| 20 | Indiana | ~8.1% | ~3.05% (flat) + local | ~7.0% | ~0.83% |
| 21 | Missouri | ~8.1% | ~2.0%–~4.8% | ~8.26% (combined avg) | ~0.93% |
| 22 | Oklahoma | ~8.2% | ~0.25%–~4.75% | ~8.98% (combined avg) | ~0.87% |
| 23 | Louisiana | ~8.2% | ~1.85%–~4.25% | ~9.56% (combined avg) | ~0.56% |
| 24 | Mississippi | ~8.3% | ~0%–~5.0% | ~7.07% | ~0.67% |
| 25 | Virginia | ~8.3% | ~2.0%–~5.75% | ~5.75% (combined avg) | ~0.82% |
| 26 | North Carolina | ~8.4% | ~4.50% (flat) | ~6.98% (combined avg) | ~0.80% |
| 27 | Michigan | ~8.5% | ~4.25% (flat) | ~6.0% | ~1.38% |
| 28 | Arkansas | ~8.5% | ~2.0%–~4.4% | ~9.45% (combined avg) | ~0.62% |
| 29 | Oregon | ~8.6% | ~4.75%–~9.9% | None | ~0.93% |
| 30 | Kentucky | ~8.7% | ~4.0% (flat) | ~6.0% | ~0.86% |
| 31 | West Virginia | ~8.7% | ~2.36%–~5.12% | ~6.0% | ~0.57% |
| 32 | New Mexico | ~8.8% | ~1.7%–~5.9% | ~7.72% (combined avg) | ~0.80% |
| 33 | Nebraska | ~8.9% | ~2.46%–~5.84% | ~6.94% (combined avg) | ~1.63% |
| 34 | Hawaii | ~9.0% | ~1.4%–~11.0% | ~4.44% | ~0.31% |
| 35 | Iowa | ~9.1% | ~4.40%–~5.70% | ~6.94% (combined avg) | ~1.52% |
| 36 | Ohio | ~9.1% | ~0%–~3.50% + local | ~7.24% (combined avg) | ~1.53% |
| 37 | Kansas | ~9.2% | ~3.1%–~5.7% | ~8.68% (combined avg) | ~1.33% |
| 38 | Maine | ~9.3% | ~5.8%–~7.15% | ~5.5% | ~1.24% |
| 39 | Pennsylvania | ~9.4% | ~3.07% (flat) + local up to ~3.88% | ~6.34% (combined avg) | ~1.49% |
| 40 | Wisconsin | ~9.5% | ~3.5%–~7.65% | ~5.43% (combined avg) | ~1.61% |
| 41 | Minnesota | ~9.6% | ~5.35%–~9.85% | ~7.49% (combined avg) | ~1.02% |
| 42 | Rhode Island | ~9.7% | ~3.75%–~5.99% | ~7.0% | ~1.40% |
| 43 | Maryland | ~9.8% | ~2.0%–~5.75% + local ~2.25%–~3.2% | ~6.0% | ~1.07% |
| 44 | Vermont | ~9.9% | ~3.35%–~8.75% | ~6.24% (combined avg) | ~1.83% |
| 45 | Massachusetts | ~10.0% | ~5.0% (flat) + ~9.0% surtax above ~$1M | ~6.25% | ~1.15% |
| 46 | Connecticut | ~10.1% | ~2.0%–~6.99% | ~6.35% | ~1.96% |
| 47 | Illinois | ~10.2% | ~4.95% (flat) | ~8.84% (combined avg) | ~2.07% |
| 48 | New Jersey | ~10.6% | ~1.4%–~10.75% | ~6.63% | ~2.23% |
| 49 | California | ~11.0% | ~1.0%–~13.3% | ~8.68% (combined avg) | ~0.71% |
| 50 (Highest) | New York | ~11.3% | ~4.0%–~10.9% + NYC ~3.08%–~3.88% | ~8.52% (combined avg) | ~1.62% |
Income Tax Rankings
States With No Individual Income Tax
| State | Notes |
|---|---|
| Alaska | No income or sales tax; relies on oil revenue |
| Florida | No income tax; relies on sales and tourism taxes |
| Nevada | No income tax; relies on gaming and sales taxes |
| South Dakota | No income tax; relies on sales tax |
| Texas | No income tax; relies on property and sales taxes |
| Tennessee | Phased out Hall Tax on investment income in 2021 |
| Washington | No traditional income tax; ~7% capital gains tax on gains above ~$270,000 |
| Wyoming | No income tax; relies on mineral severance taxes |
| New Hampshire | Phasing out interest and dividends tax (fully eliminated by 2027) |
States With the Highest Top Income Tax Rates
| State | Top Marginal Rate | Bracket Threshold |
|---|---|---|
| California | ~13.3% | Over ~$1,000,000 |
| Hawaii | ~11.0% | Over ~$200,000 |
| New Jersey | ~10.75% | Over ~$1,000,000 |
| New York | ~10.9% (state) + ~3.88% (NYC) | Over ~$25,000,000 (state); NYC applies to city residents |
| Oregon | ~9.9% | Over ~$125,000 (single) |
| Minnesota | ~9.85% | Over ~$193,240 (single) |
| Massachusetts | ~9.0% on income above ~$1M (surtax) + ~5.0% base | N/A |
| Vermont | ~8.75% | Over ~$229,500 (single) |
States With Flat Income Tax Rates
| State | Flat Rate |
|---|---|
| Colorado | ~4.40% |
| Idaho | ~5.80% |
| Illinois | ~4.95% |
| Indiana | ~3.05% (+ local surcharges) |
| Kentucky | ~4.0% |
| Massachusetts | ~5.0% (+ ~4.0% surtax above ~$1M) |
| Michigan | ~4.25% |
| North Carolina | ~4.50% |
| Pennsylvania | ~3.07% (+ local up to ~3.88%) |
| Utah | ~4.65% |
| Arizona | ~2.50% |
Sales Tax Rankings
States With No Sales Tax
| State |
|---|
| Alaska (no state tax; some local sales taxes, averaging ~1.76%) |
| Delaware |
| Montana |
| New Hampshire |
| Oregon |
States With the Highest Combined Sales Tax Rates
| State | State Rate | Average Combined (State + Local) |
|---|---|---|
| Louisiana | ~4.45% | ~9.56% |
| Tennessee | ~7.0% | ~9.55% |
| Arkansas | ~6.5% | ~9.45% |
| Washington | ~6.5% | ~9.29% |
| Alabama | ~4.0% | ~9.24% |
For state-specific sales tax guides, see our detailed articles on sales tax in California and other states.
Property Tax Rankings
States With the Highest Effective Property Tax Rates
| Rank | State | Effective Rate | Median Annual Tax |
|---|---|---|---|
| 1 | New Jersey | ~2.23% | ~$9,500 |
| 2 | Illinois | ~2.07% | ~$5,100 |
| 3 | Connecticut | ~1.96% | ~$6,800 |
| 4 | New Hampshire | ~1.86% | ~$6,400 |
| 5 | Vermont | ~1.83% | ~$5,000 |
| 6 | Texas | ~1.68% | ~$4,100 |
| 7 | Wisconsin | ~1.61% | ~$4,100 |
| 8 | Nebraska | ~1.63% | ~$3,500 |
| 9 | New York | ~1.62% | ~$6,700 |
| 10 | Pennsylvania | ~1.49% | ~$3,400 |
States With the Lowest Effective Property Tax Rates
| Rank | State | Effective Rate | Median Annual Tax |
|---|---|---|---|
| 1 | Hawaii | ~0.31% | ~$2,500 |
| 2 | Alabama | ~0.41% | ~$700 |
| 3 | Colorado | ~0.51% | ~$2,400 |
| 4 | Nevada | ~0.55% | ~$2,100 |
| 5 | Wyoming | ~0.56% | ~$1,600 |
| 6 | South Carolina | ~0.57% | ~$1,200 |
| 7 | West Virginia | ~0.57% | ~$700 |
| 8 | Utah | ~0.58% | ~$2,300 |
| 9 | Delaware | ~0.59% | ~$1,800 |
| 10 | Arizona | ~0.62% | ~$1,900 |
For detailed property tax analysis, see our guides on property tax in New Jersey and property tax in California.
Best and Worst States by Category
Best States for Retirees (Tax Perspective)
Retirees care most about whether a state taxes Social Security benefits, pension income, and retirement account withdrawals. Several states exempt all three:
| State | Social Security Taxed? | Pension Income Taxed? | Overall Retiree Tax Grade |
|---|---|---|---|
| Florida | No (no income tax) | No | A+ |
| Nevada | No (no income tax) | No | A+ |
| Wyoming | No (no income tax) | No | A+ |
| South Dakota | No (no income tax) | No | A+ |
| Alaska | No (no income tax) | No | A (higher cost of living) |
| Tennessee | No (no income tax) | No | A |
| Texas | No (no income tax) | No | A (higher property tax) |
| Mississippi | No | Partially (some exemptions) | A− |
| Pennsylvania | No | No (most pensions exempt) | B+ |
| Illinois | No | No (most pensions exempt) | B (high property tax) |
For a comprehensive analysis, see our best states for retirees guide.
Best States for Business Owners
Business owners consider state income tax rates, franchise/business taxes, regulatory costs, and the availability of qualified workforce:
| State | Key Tax Advantage | Overall Business Tax Grade |
|---|---|---|
| Wyoming | No income, franchise, or inventory tax | A+ |
| South Dakota | No income or corporate tax | A+ |
| Nevada | No income tax; moderate franchise tax | A |
| Florida | No income tax; no personal property tax | A |
| Texas | No income tax; margin tax ~0.375%–~0.75% | A− |
| Delaware | Favorable corporate law; no sales tax; franchise tax applies | B+ |
For detailed analysis, see our best states for small business taxes guide.
Best States for High Earners
High earners (income above ~$500,000) benefit most from no-income-tax states, as the savings from avoiding ~5%–~13% state income tax far outweigh any additional property or sales tax:
| State | Tax on ~$500,000 Income (Approximate State Tax) |
|---|---|
| Florida | ~$0 |
| Texas | ~$0 |
| Nevada | ~$0 |
| Wyoming | ~$0 |
| Tennessee | ~$0 |
| California | ~$47,000+ |
| New York | ~$39,000+ (state only; ~$55,000+ with NYC) |
| New Jersey | ~$34,000+ |
Total Tax Burden Analysis: Case Studies
Case Study 1: Young Professional (~$75,000 Income, Renting)
| State | Estimated State Income Tax | Sales Tax on ~$25,000 Spending | Rent (No Property Tax) | Total State/Local Tax |
|---|---|---|---|---|
| Texas | ~$0 | ~$2,050 | N/A | ~$2,050 |
| Florida | ~$0 | ~$1,755 | N/A | ~$1,755 |
| California | ~$3,100 | ~$2,170 | N/A | ~$5,270 |
| New York (NYC) | ~$6,100 | ~$2,130 | N/A | ~$8,230 |
Case Study 2: Family (~$150,000 Income, ~$400,000 Home)
| State | Income Tax | Property Tax | Sales Tax | Total |
|---|---|---|---|---|
| Texas | ~$0 | ~$6,720 | ~$3,280 | ~$10,000 |
| Florida | ~$0 | ~$3,440 | ~$2,806 | ~$6,246 |
| California | ~$8,200 | ~$2,840 | ~$3,472 | ~$14,512 |
| New Jersey | ~$6,700 | ~$8,920 | ~$2,652 | ~$18,272 |
| Illinois | ~$7,425 | ~$8,280 | ~$3,536 | ~$19,241 |
Case Study 3: Retiree (~$80,000 Income from Social Security + Pension + IRA, ~$300,000 Home)
| State | Income Tax | Property Tax | Sales Tax | Total |
|---|---|---|---|---|
| Florida | ~$0 | ~$2,580 | ~$2,106 | ~$4,686 |
| Tennessee | ~$0 | ~$1,920 | ~$2,865 | ~$4,785 |
| Pennsylvania | ~$0 (most pension/SS exempt) | ~$4,470 | ~$1,902 | ~$6,372 |
| California | ~$3,500 | ~$2,130 | ~$2,604 | ~$8,234 |
| New York | ~$2,800 | ~$4,860 | ~$2,556 | ~$10,216 |
| New Jersey | ~$2,100 | ~$6,690 | ~$1,989 | ~$10,779 |
Other State and Local Taxes
Beyond income, sales, and property taxes, states impose a variety of additional taxes that can materially affect your total burden.
Estate and Inheritance Taxes
The federal estate tax exemption for 2026 is projected at approximately $13.99 million per individual ($27.98 million for married couples). However, 12 states and the District of Columbia impose their own estate taxes with much lower exemptions, and 6 states impose inheritance taxes.
| State | Type | Exemption | Top Rate |
|---|---|---|---|
| Oregon | Estate | ~$1,000,000 | ~16% |
| Massachusetts | Estate | ~$2,000,000 | ~16% |
| New York | Estate | ~$6,940,000 | ~16% |
| Washington | Estate | ~$2,193,000 | ~20% |
| Minnesota | Estate | ~$3,000,000 | ~16% |
| New Jersey | Inheritance | Varies by beneficiary class | ~16% |
| Pennsylvania | Inheritance | None (varies by class) | ~4.5%–~15% |
| Iowa | Inheritance | ~$25,000 | ~2%–~6% |
| Kentucky | Inheritance | ~$1,000 (Class B/C) | ~4%–~16% |
In states with low estate tax exemptions, families with assets above ~$1,000,000 to ~$2,000,000 need to plan carefully. Strategies include irrevocable trusts, gifting programs, and — in some cases — relocating to a state without an estate or inheritance tax.
Excise and Sin Taxes
States impose excise taxes on specific goods including gasoline, cigarettes, alcohol, and cannabis. These can vary dramatically:
| Tax Type | Lowest State | Highest State |
|---|---|---|
| Gasoline (per gallon) | Alaska (~$0.09) | California (~$0.68) |
| Cigarettes (per pack) | Missouri (~$0.17) | New York (~$5.35) |
| Beer (per gallon) | Wyoming (~$0.02) | Tennessee (~$1.29) |
| Cannabis (where legal) | Varies (~10%–~37% effective rate) | Illinois (~25% THC-based), Washington (~37%) |
Payroll and Unemployment Taxes
All states impose unemployment insurance taxes on employers. Additionally, several states impose employee-side payroll taxes:
- California: State Disability Insurance (~1.1%), Paid Family Leave (included in SDI)
- New York: Disability (~0.5% employee share), Paid Family Leave (~0.455%)
- New Jersey: Disability (~0.26%), Family Leave (~0.09% employee, ~0.80% employer)
- Washington: Paid Family and Medical Leave (~0.74% split between employer and employee), Long-Term Care (~0.58% employee)
These additional payroll taxes can add ~0.5%–~2% to the total tax burden on wages, particularly in California and New York.
Remote Work and Multi-State Taxation
The rise of remote work has created new tax complexities. If you work from home in one state for an employer located in another state, you may face tax obligations in both states.
Convenience of the Employer Rules
Some states, notably New York and Connecticut, apply a “convenience of the employer” rule: if you work remotely from another state for your own convenience (rather than because the employer requires it), the employer’s state may still tax your income as if you worked there. This can result in double taxation if your home state does not offer a full credit for taxes paid to the employer’s state.
State Reciprocity Agreements
Several pairs of states have reciprocity agreements that allow residents to pay income tax only to their state of residence, not the state where they work. Common reciprocity pairs include Virginia-DC-Maryland, Illinois-Indiana-Iowa-Kentucky-Michigan-Wisconsin, and others. If your states have a reciprocity agreement, file a withholding exemption form with your employer.
Nexus for Business Owners
If you operate a business with customers, employees, or significant economic activity in multiple states, you may have “nexus” in those states, requiring you to file business tax returns and potentially pay income tax. Post-Wayfair (2018), even remote sellers without physical presence can have economic nexus for sales tax purposes if they exceed state-specific thresholds (commonly ~$100,000 in sales or ~200 transactions).
Migration Trends and Tax Implications
State tax differences are driving significant migration patterns. Between 2020 and 2025, the states gaining the most residents include Florida, Texas, Tennessee, North Carolina, and Arizona — all with no or relatively low income taxes. The states losing the most residents include New York, California, Illinois, and New Jersey — all with high total tax burdens.
Tax Considerations When Moving
- Domicile rules: High-tax states like California and New York aggressively audit former residents to ensure they have truly left. You must sever ties (sell/rent your home, transfer voter registration, get a new driver’s license) and establish domicile in the new state.
- Part-year returns: In the year you move, you may need to file part-year returns in both the old and new state, allocating income to each period.
- Remote work: If you work remotely for an employer in a different state, you may owe taxes in both states. Some states have reciprocity agreements; others do not.
- Deferred compensation: Some states (California, New York) claim the right to tax deferred compensation (stock options, RSUs, pensions) that was earned while you were a resident, even if you receive it after moving.
Key Takeaways
- The total state and local tax burden ranges from approximately ~5.4% of income (Alaska) to ~11.3% (New York), a difference that can amount to
$10,000–$30,000+ per year for high earners. - No-income-tax states do not necessarily have the lowest total tax burden. Texas imposes high property taxes (~1.68%), and Tennessee and Washington have high sales taxes (~9.3%–~9.6%).
- For retirees, the most tax-friendly states are Florida, Nevada, Wyoming, South Dakota, and Tennessee, all of which exempt Social Security, pension income, and retirement account withdrawals.
- For business owners, Wyoming, South Dakota, Nevada, and Florida offer the lowest total business tax burden. Delaware is attractive for corporate structure but imposes a franchise tax.
- For high earners, the no-income-tax states offer the greatest benefit, as avoiding a ~5%–~13% state income tax rate far exceeds any additional property or sales tax.
- Property taxes vary by over ~5x from the lowest (Hawaii at ~0.31%) to the highest (New Jersey at ~2.23%). For homeowners, property taxes can be a larger burden than income taxes in states like Texas, Illinois, and New Jersey.
- Migration to low-tax states is accelerating, but high-tax departure states are increasingly aggressive in audit enforcement.
Next Steps
- Calculate your total tax burden in your current state and any state you are considering moving to. Include income tax, property tax, and sales tax on your estimated spending.
- If you are a retiree or nearing retirement, evaluate states that exempt Social Security and pension income. Our best states for retirees guide provides detailed analysis.
- If you own a business, consider how state business taxes (income tax, franchise tax, payroll tax) affect your bottom line. See our best states for small business taxes guide.
- If you are moving from a high-tax state, understand domicile rules and plan your departure carefully. California and New York, in particular, conduct residency audits.
- Use our state-specific guides for detailed breakdowns: California, Texas, New York, Florida, and all other states.
- Consult a tax professional who understands multi-state taxation if your situation involves remote work, deferred compensation, or a planned relocation. See our guide to hiring a tax professional.