What US states pay the lowest taxes in 2024?
While all Americans are subject to the same federal tax laws, living in one state can lighten the tax burden faced compared to that in another state.
The 2024 tax season will be getting under way shortly with the Internal Revenue Service announcing that it will begin accepting and processing 2023 tax returns 29 January. While all Americans are subject to the same federal tax laws, living in one state can lighten the tax burden faced compared to that in another state.
The difference in total tax collections is more than 10% between the state in which the most is paid and the one in which the least.
In which states in the United States do taxpayers pay the most and least taxes?
According to the data issued by the Tax Foundation web portal, a group of tax policy experts, corresponding to the calendar year 2023, there are 13 states that have applied a tax reduction policy that has ended up resulting in a movement of total ranking.
The 10 states with the highest rates:
- New York (15.9%)
- Connecticut (15.4%)
- Hawaii (14.1%)
- Vermont (13.6%)
- California (13.5%);
- New Jersey (13.2%)
- Illinois (12.9%)
- Virginia (12.5%)
- Delaware (12.4%)
- Maine (12.4%)
The 10 states with the lowest rates:
- Arkansas (4.6%)
- Georgia (4.9%)
- Indiana (6.1%)
- Iowa (6.7%)
- Kentucky (7.4%)
- Mississippi (7.6%)
- Missouri (7.6%)
- Montana (8.4%)
- Nebraska (8.9%)
- New Hampshire (9.2%)
States like Alaska or Wyoming lost the quality of being the states in which the least taxes are paid in the entire United States, in favor of Arkansas and Georgia, which is thanks to the tax remodelings that have reduced the amount of tax levied on individuals by a considerable amount.