States differ widely on their approach to taxation, according to WalletHub. | Pexels.com / Karolina Grabowska
States differ widely on their approach to taxation, according to WalletHub. | Pexels.com / Karolina Grabowska
Illinois’ combined state and local tax rate of nearly 15.1% is the highest among all 50 states and the District of Columbia, according to a new study from the personal-finance website WalletHub.
In Illinois, state and local tax payments by households making the median U.S. income amounted to $10,463, the highest amount in the nation, according to WalletHub. The study is based on state and local taxes on real estate, vehicles, income and product sales.
While the average American household pays almost $11,000 in federal income taxes, the rates on state and local taxes vary greatly, with Alaskans paying only 6.05% – about a third of what Illinois residents pay.
The Prairie State also had the second highest gas taxes in the nation, just behind California, according to the WalletHub analysis.
Low income taxes in some states do not always mean low state and local tax rates overall, the report found. Texans may not pay a state income tax, but they spend 1.74% of their income on property taxes, which is one of the highest real estate tax rates in the nation, according to WalletHub.
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2023 Combined State and Local Sales Tax Rates
Overall Rank
(1=Lowest) | State | Effective Total State & Local Tax Rates on Median U.S. Household | Annual State & Local Taxes on Median U.S. Household | % Difference Between State & U.S. Avg. | Annual State & Local Taxes on Median State Household | Adjusted Overall Rank (Based on Cost of Living Index) |
1 | Alaska | 6.05% | $4,204 | -43.82% | $4,870 | 4 |
2 | Delaware | 6.34% | $4,405 | -41.14% | $4,707 | 1 |
3 | Montana | 7.12% | $4,948 | -33.88% | $4,773 | 2 |
4 | Nevada | 7.79% | $5,414 | -27.64% | $5,636 | 10 |
5 | Wyoming | 8.06% | $5,604 | -25.10% | $5,511 | 9 |
6 | Florida | 8.21% | $5,706 | -23.74% | $5,355 | 6 |
7 | Utah | 8.23% | $5,719 | -23.57% | $6,887 | 8 |
8 | Idaho | 8.29% | $5,765 | -22.96% | $5,545 | 5 |
9 | Colorado | 8.53% | $5,930 | -20.75% | $7,383 | 13 |
10 | Tennessee | 8.58% | $5,965 | -20.29% | $4,964 | 3 |
11 | Oregon | 8.91% | $6,192 | -17.25% | $7,329 | 22 |
12 | California | 8.97% | $6,238 | -16.64% | $9,612 | 32 |
13 | South Carolina | 9.07% | $6,304 | -15.75% | $5,288 | 11 |
14 | Alabama | 9.12% | $6,341 | -15.26% | $4,924 | 7 |
15 | District of Columbia | 9.13% | $6,343 | -15.23% | $10,357 | 46 |
16 | Arizona | 9.39% | $6,529 | -12.75% | $6,452 | 14 |
17 | West Virginia | 9.72% | $6,758 | -9.69% | $4,780 | 12 |
18 | New Hampshire | 9.90% | $6,879 | -8.06% | $8,061 | 31 |
19 | North Dakota | 10.16% | $7,064 | -5.60% | $6,652 | 25 |
20 | North Carolina | 10.51% | $7,307 | -2.35% | $6,302 | 16 |
21 | Georgia | 10.55% | $7,335 | -1.98% | $6,692 | 15 |
22 | New Mexico | 10.59% | $7,361 | -1.63% | $5,698 | 21 |
23 | Virginia | 10.69% | $7,433 | -0.66% | $8,578 | 24 |
24 | Hawaii | 10.70% | $7,440 | -0.57% | $10,456 | 50 |
25 | Louisiana | 10.75% | $7,469 | -0.18% | $5,710 | 19 |
26 | Massachusetts | 10.86% | $7,551 | 0.92% | $10,870 | 43 |
27 | South Dakota | 11.01% | $7,656 | 2.31% | $6,597 | 26 |
28 | Rhode Island | 11.24% | $7,816 | 4.45% | $8,842 | 44 |
29 | Arkansas | 11.30% | $7,852 | 4.93% | $5,712 | 18 |
30 | Missouri | 11.30% | $7,855 | 4.97% | $6,578 | 17 |
31 | Minnesota | 11.31% | $7,859 | 5.03% | $8,511 | 30 |
32 | Oklahoma | 11.51% | $8,002 | 6.94% | $6,154 | 23 |
33 | Maryland | 11.52% | $8,006 | 6.99% | $10,729 | 45 |
34 | Maine | 11.62% | $8,075 | 7.91% | $7,289 | 39 |
35 | Indiana | 11.76% | $8,173 | 9.23% | $6,851 | 28 |
36 | Vermont | 11.77% | $8,183 | 9.36% | $8,060 | 42 |
37 | Mississippi | 11.93% | $8,290 | 10.79% | $5,834 | 20 |
38 | Washington | 11.97% | $8,323 | 11.22% | $10,915 | 40 |
39 | Michigan | 12.15% | $8,449 | 12.91% | $6,965 | 27 |
40 | Kentucky | 12.50% | $8,687 | 16.09% | $6,698 | 29 |
41 | Texas | 12.73% | $8,846 | 18.21% | $8,006 | 34 |
42 | Wisconsin | 12.95% | $9,004 | 20.32% | $8,089 | 35 |
43 | New Jersey | 12.98% | $9,023 | 20.58% | $12,652 | 48 |
44 | Nebraska | 13.15% | $9,142 | 22.17% | $7,786 | 37 |
45 | Ohio | 13.20% | $9,178 | 22.66% | $7,306 | 33 |
46 | Iowa | 13.31% | $9,248 | 23.60% | $7,645 | 36 |
47 | Kansas | 13.57% | $9,433 | 26.06% | $7,919 | 38 |
48 | Pennsylvania | 13.92% | $9,675 | 29.30% | $8,820 | 41 |
49 | New York | 14.23% | $9,894 | 32.22% | $12,047 | 49 |
50 | Connecticut | 14.80% | $10,287 | 37.47% | $12,120 | 51 |
51 | Illinois | 15.05% | $10,463 | 39.83% | $9,987 | 47 |
Source: WalletHub.com