With Uncle Sam taking his cut of the past year’s earnings on May 17 — slightly later than usual due to the COVID-19 pandemic — many taxpayers are left wondering how this year’s Tax Day will affect their finances, as a lot of people are struggling financially as a result of the pandemic. Since the tax code is so complicated and has rules based on individual household characteristics, the personal-finance website released its report on Wednesday, comparing all 50 states to find out which had the highest and lowest tax burdens.
“To determine the residents with the biggest tax burdens, WalletHub compared the 50 states across the three tax types of state tax burdens — property taxes, individual income taxes and sales and excise taxes — as a share of total personal income in the state,” WalletHub said in a press release.
According to the report, Florida set the bar high in several key metrics. The study found that the Sunshine State ranked 44th in individual income tax burden (tied with six other states) and 45th in overall tax burden.
“Florida has the sixth-lowest tax burden, at 6.97%. The fact that the state does not have an individual income tax was the main factor that contributed to this ranking. Plus, Florida’s property taxes are below average at 2.74%,” said WalletHub analyst Jill Gonzalez.
A full breakdown of Florida’s rankings and rates can be seen below:
Tax Burden in Florida (1=Highest, 25=Avg.):
- 45th – Overall Tax Burden (6.97%)
- 29th – Property Tax Burden (2.74%)
- 44th – Individual Income Tax Burden (0.00%)
- 10th – Total Sales & Excise Tax Burden (4.23%)
Other states posting the lowest tax burden include Alaska (1), Tennessee (2), Wyoming (3), Delaware (4), and New Hampshire (5). New York saw the highest tax burden, with states like Hawaii and Vermont following closely.
WalletHub also found that red states (based on how they voted in 2020) experienced lower tax burdens than blue states.
#TaxDay has been delayed to May 17 this year due to COVID-19. Does your state have one of the highest #tax burdens in America? WalletHub has the answer: https://t.co/Z6vQuh9wRE pic.twitter.com/KT2tz1hS4t
— WalletHub (@wallethub) March 31, 2021