Illinois' taxes consume 16.9% of the average resident's income. | Pexels.com / Karolina Grabowska
Illinois' taxes consume 16.9% of the average resident's income. | Pexels.com / Karolina Grabowska
Illinois was ranked the worst state for tax friendliness by the MoneyGeek website, which found that the state’s residents on average pay 17% of their income – or $14,778 – in taxes.
The MoneyGeek study, which used data from the U.S. Census Bureau, Tax Foundation and the U.S. Bureau of Labor Statistics, considered state sales, income and property taxes. The Prairie State was also among four states to receive an “F” grade for taxation levels.
The study found that those states with the lowest tax burdens are also seeing greater population growth. The states that received “A” grades for their low tax rates saw growth rates from 2021 to 2022 of about 1 percent, compared to the 50 states’ average of 0.5%.
None of the states receiving “A” grades in the study collects a state income tax, according to MoneyGeek. The findings are based on how much typical middle-class families – who own a typical home – pay in state taxes.
The state with the lowest tax burden was Wyoming, where residents pay $3,438 annually, or 3.9% of their incomes, MoneyGeek reported.
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Which States Are the Most and Least Tax-Friendly?
| Rank | State | Grade | Estimated Taxes | Tax as % of Income | Change in Population 2022 |
| 1 | Wyoming | A | $3,438 | 3.90% | 0.40% |
| 2 | Nevada | A | $4,065 | 4.60% | 1.10% |
| 3 | Tennessee | A | $4,769 | 5.50% | 1.10% |
| 4 | Alaska | A | $4,847 | 5.50% | 0.10% |
| 5 | Florida | A | $4,882 | 5.60% | 2.10% |
| 6 | Washington | B | $5,723 | 6.50% | 0.60% |
| 7 | North Dakota | B | $5,885 | 6.70% | 0.60% |
| 8 | Arizona | B | $5,965 | 6.80% | 1.10% |
| 9 | South Dakota | B | $6,321 | 7.20% | 1.60% |
| 10 | Colorado | B | $6,469 | 7.40% | 0.50% |
| 11 | Delaware | B | $6,542 | 7.50% | 1.50% |
| 12 | Louisiana | B | $6,588 | 7.50% | -0.70% |
| 13 | California | B | $6,998 | 8.00% | -0.50% |
| 14 | District of Columbia | B | $7,053 | 8.10% | 0.30% |
| 15 | Montana | B | $7,151 | 8.20% | 1.70% |
| 16 | Idaho | B | $7,162 | 8.20% | 2.00% |
| 17 | New Mexico | B | $7,215 | 8.30% | -0.10% |
| 18 | Alabama | B | $7,248 | 8.30% | 0.70% |
| 19 | Hawaii | B | $7,432 | 8.50% | -0.10% |
| 20 | South Carolina | B | $7,541 | 8.60% | 1.80% |
| 21 | Indiana | B | $7,679 | 8.80% | 0.40% |
| 22 | North Carolina | B | $7,779 | 8.90% | 1.40% |
| 23 | Missouri | C | $8,124 | 9.30% | 0.20% |
| 24 | Utah | C | $8,199 | 9.40% | 1.30% |
| 25 | Mississippi | C | $8,437 | 9.70% | -0.30% |
| 26 | West Virginia | C | $8,447 | 9.70% | -0.40% |
| 27 | Oklahoma | C | $8,547 | 9.80% | 0.80% |
| 28 | Texas | C | $8,554 | 9.80% | 1.70% |
| 29 | Virginia | C | $8,594 | 9.80% | 0.50% |
| 30 | Kentucky | C | $8,641 | 9.90% | 0.10% |
| 31 | Arkansas | C | $8,767 | 10.00% | 0.70% |
| 32 | Maryland | C | $9,286 | 10.60% | 0.00% |
| 33 | Minnesota | C | $9,446 | 10.80% | 0.20% |
| 34 | Ohio | C | $9,479 | 10.80% | -0.20% |
| 35 | Georgia | C | $9,517 | 10.90% | 1.00% |
| 36 | Oregon | C | $9,807 | 11.20% | -0.10% |
| 37 | Maine | C | $10,026 | 11.50% | 1.00% |
| 38 | Pennsylvania | C | $10,198 | 11.70% | 0.10% |
| 39 | Rhode Island | C | $10,240 | 11.70% | -0.20% |
| 40 | Massachusetts | D | $10,360 | 11.80% | 0.00% |
| 41 | Kansas | D | $10,816 | 12.40% | 0.10% |
| 42 | Michigan | D | $10,920 | 12.50% | -0.20% |
| 43 | Nebraska | D | $11,085 | 12.70% | 0.20% |
| 44 | Wisconsin | D | $11,198 | 12.80% | -0.10% |
| 45 | Vermont | D | $11,206 | 12.80% | 0.20% |
| 46 | Iowa | D | $12,084 | 13.80% | 0.20% |
| 47 | New York | D | $12,298 | 14.10% | -0.80% |
| 48 | New Hampshire | F | $12,539 | 14.30% | 0.40% |
| 49 | New Jersey | F | $12,907 | 14.80% | -0.10% |
| 50 | Connecticut | F | $13,391 | 15.30% | 0.60% |
| 51 | Illinois | F | $14,778 | 16.90% | -0.70% |
Source: MoneyGeek.com
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