What’s Your Tax Burden?


The Easiest Way to Save on Taxes

Having spent 45 years in the investment publishing business, I’ve known more than a few successful businesspeople who hated paying taxes. A handful of them went to great lengths to reducing their individual burdens, getting involved in all sorts of risky and costly schemes. None of them were successful.

Having had the benefit of watching them fail, I concluded it was a dangerous waste of time. The only thing that works is the simplest thing: Live and work in a state whose tax burden is comparatively low.

Below is a chart a friend forwarded to me that breaks down tax burden by state, from highest to lowest.

I was happy to see that my state, Florida, ranked 45. The only states that scored better were New Hampshire, Oklahoma, Tennessee, Alaska, and Delaware. I feel good about my choice. How about you?

Overall Tax Burden by State

Overall Rank State Total Tax Burden
(%) Property Tax Burden
(%) Individual Income Tax Burden
(%) Total Sales & Excise Tax Burden
(%)
1 New York 12.94% 4.55% 4.76% 3.63%
2 Hawaii 11.27% 2.11% 2.64% 6.52%
3 Vermont 10.75% 4.96% 2.29% 3.50%
4 Maine 10.73% 4.65% 2.58% 3.50%
5 Minnesota 10.24% 2.87% 3.59% 3.78%
6 Connecticut 10.23% 4.16% 3.24% 2.83%
7 New Jersey 10.14% 5.31% 2.32% 2.51%
8 Rhode Island 10.09% 4.80% 2.15% 3.14%
9 Illinois 10.00% 4.14% 2.66% 3.20%
10 California 9.52% 2.72% 3.44% 3.36%
11 Wisconsin 9.44% 3.73% 2.66% 3.05%
12 Maryland 9.38% 2.76% 3.88% 2.74%
13 Ohio 9.15% 2.85% 2.66% 3.64%
14 West Virginia 9.13% 2.38% 2.68% 4.07%
15 Arkansas 9.12% 1.79% 2.33% 5.00%
16 Nebraska 9.07% 3.64% 2.33% 3.10%
17 Mississippi 9.02% 2.68% 1.63% 4.71%
18 Massachusetts 9.01% 3.66% 3.29% 2.06%
19 Iowa 8.96% 3.43% 2.40% 3.13%
20 Kansas 8.72% 3.09% 1.87% 3.76%
20 New Mexico 8.72% 2.00% 1.70% 5.02%
22 Kentucky 8.71% 1.99% 3.05% 3.67%
23 Indiana 8.63% 2.40% 2.26% 3.97%
24 Pennsylvania 8.52% 2.93% 2.54% 3.05%
25 Utah 8.51% 2.57% 2.61% 3.33%
26 Michigan 8.48% 3.26% 2.05% 3.17%
27 Oregon 8.40% 3.24% 4.02% 1.14%
28 North Carolina 8.33% 2.42% 2.66% 3.25%
29 Louisiana 8.29% 2.01% 1.42% 4.86%
30 Nevada 8.25% 2.35% 0.00% 5.90%
31 Arizona 8.22% 2.59% 1.35% 4.28%
32 Georgia 8.20% 2.80% 2.29% 3.11%
33 Washington 8.18% 2.71% 0.00% 5.47%
34 Texas 7.99% 3.57% 0.00% 4.42%
35 Colorado 7.97% 2.74% 2.12% 3.11%
36 North Dakota 7.93% 1.94% 1.16% 4.83%
37 South Carolina 7.82% 2.93% 1.92% 2.97%
38 Missouri 7.77% 2.34% 2.28% 3.15%
39 Idaho 7.75% 2.50% 2.20% 3.05%
40 Virginia 7.60% 2.91% 2.61% 2.08%
41 Montana 7.51% 3.61% 2.56% 1.34%
42 Wyoming 7.29% 3.77% 0.00% 3.52%
43 Alabama 7.19% 1.41% 1.85% 3.93%
44 South Dakota 7.12% 2.83% 0.00% 4.29%
45 Florida 6.79% 2.76% 0.00% 4.03%
46 New Hampshire 6.70% 5.33% 0.13% 1.24%
47 Oklahoma 6.61% 1.38% 1.69% 3.54%
48 Tennessee 6.45% 2.06% 0.09% 4.30%
49 Alaska 6.27% 4.84% 0.00% 1.43%
50 Delaware 5.59% 1.83% 2.59% 1.17%