Texas Ranks 45th on Taxation
Taxes are one of the few certainties in life — but they do not have to be a great burden. From the checkout counter to the 1040 form due every April, what Americans end up paying in taxes depends largely on where they live. While all Americans are generally subject to the same federal tax code, each of the 50 states has broad authority to levy its own sales, income, and property taxes — or not.
With data from tax policy advocacy group Tax Foundation, 24/7 Wall St. reviewed the total tax burden as a share of income on a per capita basis to identify the states with the lowest and highest tax burden. Federal taxes are not included in the calculation. While every state government relies on taxes to operate, no two state tax structures are exactly the same. For example, four states do not charge a sales tax and seven states do not levy personal income taxes. In stark contrast, 13 states derive the largest share of their annual tax revenue from sales taxes and nine from personal income taxes.
THE SIX HIGHEST TAXED STATES
- New York
- New Jersey
THE FIVE LOWEST TAXED STATES
* Taxes paid as percent of income: 7.6%
* Income per capita: $47,362 (24th lowest)
* State Income Tax Collections: -0- (tied for lowest)
* Property tax collections per capita: $1,731 (13th highest)
* General sales tax collections per capita: $1,151 (5th highest)
- South Dakota
– 24/7 Wall Street, March 2019