Following Florida ranking among the states with the best taxpayer return on investment (ROI) last week, the Sunshine State garnered high praise again by WalletHub, being featured as one of the best states in its 2022 Tax Burden by State report.
With Tax Day approaching on April 18 and 81% of Americans thinking that the government does not spend their tax dollars wisely, the personal-finance website released its yearly analysis, alongside accompanying videos and expert commentary, along with its 2022 Tax Facts infographic.
“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 once again set the bar high in several key metrics. The study found that Florida boasts the sixth-lowest tax burden in the U.S. and ranked 44th in individual income tax burden and 45th in overall tax burden.
“Florida has the sixth lowest tax burden in the country. The main reason for this is the fact that the state does not impose an income tax. The overall 6.64% tax burden is made up of a 2.77% property tax and a 3.87% total sales and excise tax. The percentages represent the fraction of personal income spent on taxes,” 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 (6.64%)
- 28th – Property Tax Burden (2.77%)
- 44th – Individual Income Tax Burden (0.00%)
- 16th – Total Sales & Excise Tax Burden (3.87%)
Other states posting the lowest tax burden include Alaska, Tennessee, Delaware, Wyoming, and New Hampshire. New York saw the highest tax burden, with states like Hawaii and Maine following closely.