Here are the states where residents will pay the biggest share of their income in taxes this year
Massachusetts and Oregon residents will pay the largest share of their income in taxes this spring, according to a new study from the personal finance site FinanceBuzz.
The average American will pay 19.68 percent of their income in taxes this year, but residents in 24 states face a tax burden that is higher than the national average, the study found.
Massachusetts residents filing as individuals can expect to pay 24.07 percent of their income in taxes this year, while couples filing jointly will pay 23.47 percent.
This steep tax burden is in part due to the Bay State having the highest individual median income in the country — $72,321.
“This puts many Massachusetts residents into higher tax brackets where more significant portions of their income are taxed at higher rates,” the study states.
Meanwhile, Floridians and Tennesseans will pay the smallest percentage of their income in taxes this year, with residents in both states who file as individuals set to part with 15.67 percent of their 2022 income in taxes.
Florida and Tennessee residents’ lower tax burdens are due in part to neither state charging state-level income tax, the study noted.
There are at least seven states in the U.S. that do not have state-level income tax, including Florida and Tennessee. But those states usually make up for lack of individual income tax by charging higher property or sales tax.
Here are the 10 states where people will pay the highest share of their income in taxes:
- Massachusetts (24.07%)
- Oregon (23.48%)
- Connecticut (23.37%)
- Maryland (22.85%)
- New York (22.70%)
- Hawaii (22.66%)
- Virginia (22.20%)
- New Jersey (22.10%)
- Minnesota (21.94%)
- Illinois (21.50%)
Here are the states where people will pay the smallest share of their income in taxes:
- Florida (15.67%)
- Tennessee (15.67%)
- South Dakota (15.80%)
- Nevada (15.93%)
- Wyoming (15.99%)
- Texas (16.01%)
- North Dakota (16.71%)
- Alaska (17.10%)
- New Hampshire (17.51%)
- Arizona (18.01%)
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