WalletHub study shows which states have highest tax burden

National News

(WEHT) – With Tax Day delayed to July 15 due to the coronavirus pandemic, the personal-finance website WalletHub broke down the tax burden by state in 2020 in a new study.

In order to determine which states tax their residents most aggressively, WalletHub compared the 50 states based on the three components of state tax burden as a share of personal income: property taxes, individual income taxes, and sales/excise taxes.

Source: WalletHub

Illinois ranked ninth-highest on the list at 9.62%. Kentucky (21) and Indiana (35) both ranked lower on the list.

States with Highest Tax Burdens (%)States with Lowest Tax Burdens (%)
1. New York (12.28%)41. South Carolina (7.48%)
2. Hawaii (11.48%)42. Alabama (7.36%)
3. Vermont (10.73%)43. Montana (7.22%)
4. Maine (10.57%)44. Oklahoma (6.94%)
5. Minnesota (10.19%)45. New Hampshire (6.85%)
6. Connecticut (9.99%)46. Florida (6.82%)
7. New Jersey (9.88%)47. Wyoming (6.47%)
8. Rhode Island (9.84%)48. Tennessee (6.18%)
9. Illinois (9.62%)49. Delaware (5.52%)
10. Iowa (9.53%)50. Alaska (5.16%)

The study also found some key statistics for taxpayers:

  • Americans spend 8 billion hours doing taxes each year. The average person spends 11 hours and $210 completing his or her 1040.
  • 90% of tax returns are expected to be filled electronically. The average refund in 2020 is $2,769, as of 6/5/2020.
  • Nearly one-third of people (30%) say making a math mistake as well as not having enough money (30%) are their biggest Tax Day fears, edging out identity theft (21%) and getting audited (19%).
  • 37% of Americans would move to a different country and 26% would get an “IRS” tattoo for a tax-free future.
  • 50% of people would rather do jury duty than their taxes. Nearly 1 in 5 would prefer talking to their kids about sex. More than 10% would swim with sharks, spend the night in jail and drink expired milk.

For the latest breaking news and stories from across the
Tri-State, follow Eyewitness News on Facebook and Twitter.

(This story was originally published on June 24, 2020)


Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Trending Stories