In this article, we peel back the layers of the U.S. tax system, revealing the states where your hard-earned dollars face the biggest deductions. From income and sales taxes to property and excise levies, we’ll uncover the factors contributing to higher tax rates across various states.
New York
Tax burden: 12.47%. Big Apple, even bigger bite from Uncle Sam. New York boasts some of the nation’s highest income taxes, balanced by various deductions and credits, making tax season a complex affair.
Hawaii
Tax burden: 12.31%. Island paradise with a hefty price tag. While sales tax might be moderate, high income taxes and the added cost of living make Hawaii a state where you pay to play.
Maine
Tax burden: 11.14%. Lobster lovers beware, the “Vacationland” tax isn’t just for tourists. Progressive income tax brackets and a high sales tax mean budgeting is key in this scenic state.
Vermont
Tax burden: 10.28%. Land of maple syrup and progressive taxation. With the highest combined state and local sales tax in the country, Vermont also features a progressive income tax, making careful planning crucial.
Connecticut
Tax burden: 9.83%. Nutmeg State squeezes your wallet. Although sales tax is lower, high income taxes and a lack of major deductions make Connecticut a state where careful financial planning is essential.
