WalletHub study shows which states have highest tax burden

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(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.

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

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