States With the Highest & Lowest Tax Rates

Taxes affect your paycheck, your spending power, and even where you might choose to live. WalletHub’s latest analysis ranks states by their overall tax burden, showing which states take the most from residents—and which give the most breathing room.

High: New Jersey

• Effective combined state and local tax rate: 10.78%
• Average property tax per household: $8,693

New Jersey consistently tops tax lists, with high property taxes and income taxes combining to put a heavy burden on residents. Families often feel the pinch, especially in suburban areas where property values drive annual taxes even higher.

Low: Delaware

• Effective combined state and local tax rate: 5.34%
• Average property tax per household: $2,257

Delaware keeps taxes low while offering strong public services. With no sales tax and relatively low property taxes, it’s a popular choice for both retirees and businesses.

High: Pennsylvania

• Effective combined state and local tax rate: 9.55%
• Average property tax per household: $3,550

Pennsylvania’s mix of state and local taxes makes it one of the costliest states for residents. While income taxes are moderate, high property and sales taxes add up, particularly in cities like Philadelphia and Pittsburgh.

Low: Alaska

• Effective combined state and local tax rate: 5.22%
• Average property tax per household: $3,019

Alaska offers a rare tax advantage: no state income tax and no state-level sales tax in many areas. Residents benefit from oil revenue that funds public services, making it one of the most tax-friendly states.

High: Connecticut

• Effective combined state and local tax rate: 9.48%
• Average property tax per household: $7,500

Connecticut’s wealthy suburbs come with a high price: steep income taxes and expensive property taxes. For homeowners and high earners, the state’s tax rates can significantly impact disposable income.

Low: Idaho

• Effective combined state and local tax rate: 5.62%
• Average property tax per household: $2,012

Idaho combines low property taxes with modest income taxes, making it one of the most affordable states for families and retirees. Its cost of living remains below the national average, boosting overall financial flexibility.

High: New York

• Effective combined state and local tax rate: 9.41%
• Average property tax per household: $7,655

From New York City to the upstate region, taxes in New York are high across the board. Residents face state and local income taxes, property taxes, and some of the highest sales taxes in the country.

Low: Montana

• Effective combined state and local tax rate: 5.66%
• Average property tax per household: $1,996

Montana residents pay no state sales tax, though income taxes are moderate. Low property taxes and affordable housing make it an attractive option for families and individuals seeking to keep more of their earnings.

High: Illinois

• Effective combined state and local tax rate: 9.32%
• Average property tax per household: $7,176

Illinois residents contend with high property taxes and a flat income tax that doesn’t offset rising costs elsewhere. Chicago-area homeowners feel the burden most, though the entire state ranks high in overall tax rates.

Low: Wyoming

• Effective combined state and local tax rate: 5.48%
• Average property tax per household: $2,018

Wyoming’s low tax burden is a big draw for residents and companies alike. The state has no income tax and low property taxes, making it ideal for those looking to maximize take-home pay.