Summary
A new study by WalletHub shows that tax rates vary across the U.S., with Illinois residents paying the highest state and local taxes and Alaska residents paying the lowest. The study examined real-estate tax, vehicle property tax, income tax, and sales & excise tax to compare all 50 states and Washington, D.C.
Key Facts
- Tax season for 2025 ends on April 15.
- According to WalletHub, Illinois has the highest state and local tax rate at 16.87% for a median U.S. household income.
- Alaska has the lowest state and local tax rate at 6.94%.
- WalletHub compared tax rates across four types: real estate, vehicle property, income, and sales & excise taxes.
- New York and Connecticut have the second and third highest tax burdens, respectively.
- In contrast, Delaware and Wyoming have some of the lowest tax rates after Alaska.
- Washington and Texas have no income tax, but they make up for it with other taxes, like sales and real estate taxes.
- Blue states generally have higher taxes than red states, according to the study.
