Tax day is approaching fast — that's April 18 this year (in most states), in case you needed the reminder. While time keeps ticking away (and stress keeps mounting for those who haven't filed yet), WalletHub released a report that identifies the best and worst states to be a taxpayer. The report compares state and local tax rates across all 50 states and the District of Columbia against the national median. It also calculates relative income-tax obligations by applying the effective income-tax rates in each state and locality to the average American's income, according to their methodology.
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Report analysts look at four types of taxation: real estate tax, vehicle property tax, income tax, and sales and excise tax. (You can read more about each type here.)
In the list that follows, we look at the 10 best and 10 worst states to be a taxpayer, based on the report's findings. Each ranking includes an overall rank number, the effective total state and local tax rates on the median U.S. household, the annual state and local taxes on the median U.S. household, the percentage difference between the state and the national average, and the annual state and local taxes on the median state household.
Bottom 10: Worst states to pay taxes
10. New Jersey
Effective total state & local tax rates on median U.S. household: 12.39%
Annual state & local taxes on median U.S. household: $6,675
Percentage difference between state & national average: 15.70%
Annual state & local taxes on median state household: $10,891
9. Iowa
Effective total state & local tax rates on median U.S. household: 12.75%
Annual state & local taxes on median U.S. household: $6,872
Percentage difference between state & national average: 19.12%
Annual state & local taxes on median state household: $6,071
8. Ohio
Effective total state & local tax rates on median U.S. household: 12.97%
Annual state & local taxes on median U.S. household: $6,991
Percentage difference between state & national average: 21.19%
Annual state & local taxes on median state household: $5,892
7. Michigan
Effective total state & local tax rates on median U.S. household: 13.09%
Annual state & local taxes on median U.S. household: $7,054
Percentage difference between state & national average: 22.28%
Annual state & local taxes on median state household: $5,717
6. New York
Effective total state & local tax rates on median U.S. household: 13.38%
Annual state & local taxes on median U.S. household: $7,211
Percentage difference between state & national average: 25%
Annual state & local taxes on median state household: $9,342
5. Rhode Island
Effective total state & local tax rates on median U.S. household: 13.46%
Annual state & local taxes on median U.S. household: $7,255
Percentage difference between state & national average: 25.77%
Annual state & local taxes on median state household: $8,497
4. Connecticut
Effective total state & local tax rates on median U.S. household: 13.48%
Annual state & local taxes on median U.S. household: $7,262
Percentage difference between state & national average: 25.89%
Annual state & local taxes on median state household: $10,131
3. Wisconsin
Effective total state & local tax rates on median U.S. household: 13.58%
Annual state & local taxes on median U.S. household: $7,316
Percentage difference between state & national average: 26.82%
Annual state & local taxes on median state household: $7,065
2. Nebraska
Effective total state & local tax rates on median U.S. household: 13.85%
Annual state & local taxes on median U.S. household: $7,466
Percentage difference between state & national average: 29.41%
Annual state & local taxes on median state household: $6,525
1. Illinois
Effective total state & local tax rates on median U.S. household: 14.54%
