A MoneyGeek study including IRS, state, property and sales taxes listed Fla. as the No. 4 least-expensive tax state. Total tax costs are about 5.6% of total income.It’s tax filing season and depending on where you live in the U.S., you could be forking over a very different-sized chunk of your income.
An analysis by MoneyGeek ranked every state by how “tax-friendly” it is. The analysts didn’t just look at income tax – they also factored in property taxes, plus state and local sales taxes.
To determine where people pay the highest tax burden, MoneyGeek looked at a hypothetical average family: a married couple with one kid, earning the median national income of $82,852, owning a $349,400 home. The study breaks down how much this fictional family would pay in taxes in every state.
The states with the lowest tax burden, according to the analysis, were:
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Wyoming (estimated taxes: 4% of income or $3,279)
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Nevada (estimated taxes: 4.7% of income or $3,879)
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Alaska (estimated taxes: 5.4% of income or $4,507)
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Florida (estimated taxes: 5.6% of income or $4,632)
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Tennessee (estimated taxes: 6.5% of income or $5,377)
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Washington (estimated taxes: 6.5% of income or $5,414)
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North Dakota (estimated taxes: 6.7% of income or $5,556)
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Arizona (estimated taxes: 6.8% of income or $5,665)
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South Dakota (estimated taxes: 7.2% of income or $5,938)
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Delaware (estimated taxes: 7.3% of income or $6,074)
The states with the highest tax burden were:
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Illinois (estimated taxes: 16.8% of income or $13,894)
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Connecticut (estimated taxes: 15.1% of income or $12,545)
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New Jersey (estimated taxes: 14.3% of income or $11,872)
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New Hampshire (estimated taxes: 14.1% of income or $11,694)
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New York (estimated taxes: 13.9% of income or $11,495)
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Iowa (estimated taxes: 13.8% of income or $11,398)
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Wisconsin (estimated taxes: 13.2% of income or $10,976)
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Vermont (estimated taxes: 12.6% of income or $10,453)
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Nebraska (estimated taxes: 12.6% of income or $10,446)
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Michigan (estimated taxes: 12.4% of income or $10,239)
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