Fresh off tax season, Americans now have a clearer idea of where their state stacks up when it comes to how much of their income actually goes to taxes — and the results may surprise some.
A new report from WalletHub ranked all 50 states by total tax burden, offering a big-picture look at what residents really pay. And despite its reputation, California isn’t the worst offender.
Instead, Hawaii, New York and Vermont top the list as the states where residents hand over the largest share of their income to state and local taxes.
The analysis measures tax burden as a percentage of total personal income — a broader and more telling metric than just looking at tax rates alone.
That distinction matters.
While California boasts the highest top marginal income tax rate in the nation at 13.3% for the 2026 fiscal year, it ranks No. 11 overall in tax burden.
In other words, the Golden State may hit high earners hard on paper, but the total share of income residents pay across all taxes isn’t the highest nationwide.
Hawaii leads the pack with a total tax burden of 13.3%, driven largely by steep sales and excise taxes. New York follows at 12.39%, with Vermont close behind at 11.1%, thanks in part to the highest property tax burden in the country.
At the other end of the spectrum, Alaska ranks as the most tax-friendly state, with residents paying just 4.92% of their income in taxes. Florida, Tennessee and New Hampshire also land near the bottom, making them especially attractive for tax-conscious residents.
“It’s easy to be dismayed at tax time when you see just how much of your income you lose. Living in a state with a low tax burden can alleviate some of that stress.
“Some states charge no income tax or no sales tax, although all states have some form of property taxes and excise taxes,” WalletHub analyst Chip Lupo said.
The WalletHub study compared states across three key metrics — property taxes, individual income taxes and total sales and excise taxes — calculating each as a share of residents’ personal income. Those figures were then combined to produce an overall tax burden ranking for each state.
The report breaks tax burden into three main categories: property taxes, individual income taxes and sales and excise taxes. That approach highlights how states generate revenue in very different ways.
For example, Oregon has the highest income tax burden, while several states — including Texas, Florida and Nevada — charge no income tax at all.
Vermont leads in property taxes, whereas Alabama residents pay the least in that category. Meanwhile, Hawaii again tops the list for sales taxes, while New Hampshire residents pay the least.
The findings also point to a broader political divide.
On average, states that lean Democratic tend to have higher overall tax burdens, while Republican-leaning states generally rank lower — though they often rely more heavily on sales taxes to make up the difference.
Ultimately, the data shows there’s no simple answer when it comes to taxes. Lower-tax states may offer fewer public services, while higher-tax states often provide more robust programs — leaving residents to weigh the trade-offs.
See the full ranked list below (highest to lowest tax burden):
- Alaska
- Hawaii
- New York
- Vermont
- New Mexico
- Maine
- Illinois
- Maryland
- New Jersey
- Oregon
- Rhode Island
- California
- Iowa
- Kansas
- Indiana
- Minnesota
- Ohio
- Connecticut
- West Virginia
- Utah
- Mississippi
- Massachusetts
- Louisiana
- Kentucky
- Pennsylvania
- Washington
- Arkansas
- Nevada
- Virginia
- Nebraska
- Georgia
- Wisconsin
- Michigan
- Alabama
- Missouri
- North Carolina
- Texas
- Colorado
- South Carolina
- Montana
- Arizona
- Oklahoma
- Idaho
- North Dakota
- Wyoming
- South Dakota
- Delaware
- Florida
- Tennessee
- New Hampshire