12 States With the Highest Taxes in America: 2023

The average U.S. household pays Uncle Sam nearly $11,000 in federal income taxes every year. Taxpayers also have to come up with money to pay state and local taxes, but depending on where they live, some will pay much more than others. Residents of the lowest tax state pay 6% in taxes, while those in the most expensive one pay more than double that rate, according to a recent report from personal finance website WalletHub. WalletHub pored through the array of taxes in the 50 states and the District of Columbia to find where taxpayers take the biggest hit. Researchers compared states across four types of taxation: real estate tax, vehicle property tax, income tax, and sales and excise taxes. They then calculated the effective tax rate for a household at the mean third quintile U.S. income of $69,508. See the gallery for the 12 states with the highest effective total state and local tax rates, according to WalletHub. (Image: Shutterstock)