A new report lists the states with the lowest and highest tax rates.
A survey by WalletHub found that four blue and one red state topped the list. Illinois came in as having the highest tax burden with an effective state and local tax rate of 15.01% on a middle-class household or medium income. Coming in second-highest is Connecticut, with 14.84%, New York, with 14.08% and then Pennsylvania. But what surprised many was Kansas under Gov. Laura Kelly (D). The sunflower state came in as the fifth fifth-highest at 13.43%. Missouri came in at 28 with 11.25%.
Americans living in the highest taxes states pay about three times more than individuals living in the cheapest states.
States with the lowest tax rates on medium incomes are Alaska with an effective tax rate of 5.84%, followed by Delaware at 6.25%, Montana at 7.11%, Nevada at 7.94% and Wyoming at 8.05%.
But don’t let a low tax rate, like that in California, fool you. Many states make up for it in other fees and hidden taxes. There’s a reason why people are leaving California.
Overall, what are typically referred to as Red and Blue states have a sharp contrast. Averaged out, Blue states pay approximately 20% more in taxes overall than Red states.
WalletHub conducted the analysis by comparing the 50 states and Washington across four areas of taxation: Real-estate, vehicle property, income and sales and excise.
Here are the states and their tax rates:
| Rank: 1 is least taxes | State | Effective Total State & Local Tax Rates on Median U.S. Household* | Annual State & Local Taxes on Median U.S. Household* | % Difference Between State & U.S. Avg.** | Annual State & Local Taxes on Median State Household*** | Adjusted Overall Rank (based on Cost of Living Index) |
|---|---|---|---|---|---|---|
| 1 | Alaska | 5.84% | $3,694 | -45.90% | $4,585 | 3 |
| 2 | Delaware | 6.25% | $3,949 | -42.17% | $4,366 | 1 |
| 3 | Montana | 7.11% | $4,494 | -34.19% | $4,301 | 2 |
| 4 | Nevada | 7.94% | $5,017 | -26.53% | $5,180 | 10 |
| 5 | Wyoming | 8.05% | $5,086 | -25.51% | $5,178 | 8 |
| 6 | Florida | 8.23% | $5,204 | -23.79% | $4,820 | 5 |
| 7 | Utah | 8.34% | $5,274 | -22.76% | $6,194 | 9 |
| 8 | Idaho | 8.43% | $5,329 | -21.96% | $4,870 | 6 |
| 9 | Colorado | 8.54% | $5,396 | -20.98% | $6,611 | 13 |
| 10 | Tennessee | 8.72% | $5,513 | -19.27% | $4,551 | 4 |
| 11 | California | 8.96% | $5,662 | -17.08% | $8,588 | 32 |
| 12 | South Carolina | 8.99% | $5,683 | -16.78% | $4,779 | 11 |
| 13 | Oregon | 8.99% | $5,686 | -16.73% | $6,598 | 24 |
| 14 | District of Columbia | 9.04% | $5,715 | -16.30% | $9,563 | 42 |
| 15 | Alabama | 9.10% | $5,754 | -15.73% | $4,508 | 7 |
| 16 | Arizona | 9.52% | $6,021 | -11.83% | $5,814 | 14 |
| 17 | W. Virginia | 9.69% | $6,124 | -10.31% | $4,405 | 12 |
| 18 | N. Dakota | 10.03% | $6,343 | -7.11% | $6,253 | 23 |
| 19 | New Hampshire | 10.06% | $6,358 | -6.88% | $7,577 | 33 |
| 20 | New Mexico | 10.54% | $6,663 | -2.42% | $5,257 | 20 |
| 21 | Georgia | 10.57% | $6,683 | -2.13% | $5,989 | 15 |
| 22 | North Carolina | 10.61% | $6,710 | -1.73% | $5,742 | 17 |
| 23 | Louisiana | 10.63% | $6,723 | -1.54% | $5,239 | 19 |
| 24 | Hawaii | 10.66% | $6,736 | -1.35% | $9,621 | 45 |
| 25 | Virginia | 10.73% | $6,783 | -0.66% | $7,955 | 26 |
| 26 | Mass. | 10.90% | $6,890 | 0.91% | $9,972 | 43 |
| 27 | South Dakota | 11.16% | $7,055 | 3.33% | $6,095 | 27 |
| 28 | Missouri | 11.25% | $7,111 | 4.14% | $6,023 | 16 |
| 29 | Minnesota | 11.27% | $7,128 | 4.39% | $7,774 | 29 |
| 30 | Arkansas | 11.28% | $7,134 | 4.48% | $5,217 | 18 |
| 31 | Oklahoma | 11.44% | $7,235 | 5.95% | $5,673 | 22 |
| 32 | Maryland | 11.49% | $7,261 | 6.34% | $10,011 | 46 |
| 33 | Vermont | 11.62% | $7,347 | 7.60% | $7,498 | 41 |
| 34 | Indiana | 11.75% | $7,430 | 8.81% | $6,239 | 28 |
| 35 | Maine | 11.81% | $7,465 | 9.33% | $6,792 | 40 |
| 36 | Mississippi | 11.97% | $7,569 | 10.86% | $5,381 | 21 |
| 37 | Washington | 12.02% | $7,601 | 11.33% | $9,732 | 39 |
| 38 | Michigan | 12.22% | $7,728 | 13.18% | $6,388 | 25 |
| 39 | Kentucky | 12.48% | $7,887 | 15.51% | $6,115 | 30 |
| 40 | Texas | 12.79% | $8,083 | 18.37% | $7,212 | 34 |
| 41 | Rhode Island | 12.82% | $8,103 | 18.67% | $9,063 | 50 |
| 42 | New Jersey | 12.84% | $8,117 | 18.88% | $11,906 | 48 |
| 43 | Ohio | 13.18% | $8,329 | 21.98% | $6,724 | 31 |
| 44 | Iowa | 13.18% | $8,334 | 22.05% | $7,053 | 35 |
| 45 | Wisconsin | 13.22% | $8,357 | 22.39% | $7,586 | 37 |
| 46 | Nebraska | 13.27% | $8,386 | 22.82% | $7,214 | 38 |
| 47 | Kansas | 13.43% | $8,488 | 24.30% | $7,294 | 36 |
| 48 | Pennsylvania | 13.97% | $8,830 | 29.32% | $8,138 | 44 |
| 49 | New York | 14.08% | $8,900 | 30.34% | $11,024 | 49 |
| 50 | Connecticut | 14.84% | $9,379 | 37.36% | $11,625 | 51 |
| 51 | Illinois | 15.01% | $9,488 | 38.95% | $9,200 |
–Wire services
