Tax titans and tax havens: The US states with the highest and lowest taxes in 2025
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 2025 tax season is under way and the tax deadline is just around the corner on April 15. 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 percent between the state in which the most is paid and the one in which the least.
What US 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%)
Add up each state's income taxes, property taxes, and sales and excise taxes...
— Tyler | Kenji Capital (@KenjiCapital) April 28, 2024
And here's a map of TOTAL TAX BURDEN
State's with the highest tax burden:
1. New York
2. Hawaii
3. Vermont (shocker?!!?) pic.twitter.com/HJ6M1ExnWm
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.
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