fbpx

2021 Tax Burden by State & Tax Facts – WalletHub Study

With Tax Day delayed to May 17 due to the impact of the COVID-19 pandemic, the personal-finance website WalletHub today released its 2021 Tax Burden by State report, as well as accompanying videos, along with its 2021 Tax Facts infographic.

In order to determine which states tax their residents most aggressively, WalletHub compared the 50 states based on the three components of state tax burden — property taxes, individual income taxes, and sales and excise taxes — as a share of total personal income.

States with Highest Tax Burdens (%) States with Lowest Tax Burdens (%)
1. New York (12.79%) T-40. Alabama (7.45%)
2. Hawaii (12.19%) T-40. Montana (7.45%)
3. Vermont (10.75%) T-40. South Carolina (7.45%)
4. Maine (10.50%) 43. South Dakota (7.37%)
5. Connecticut (10.44%) 44. Oklahoma (7.13%)
6. Minnesota (9.99%) 45. Florida (6.97%)
7. New Jersey (9.98%) 46. New Hampshire (6.84%)
8. Rhode Island (9.69%) 47. Delaware (6.21%)
9. Illinois (9.52%) 48. Wyoming (6.14%)
10. California (9.48%) 49. Tennessee (5.74%)
11.Kansas (9.36%) 50. Alaska (5.10%)

Key Stats – Tax Facts Infographic

  • 79% of Americans don’t know if they’ll owe income taxes on their stimulus checks (they won’t).
  • Americans spend 8 billion hours doing taxes each year. The average person spends 12 hours and $230 completing their 1040.
  • 90% of tax returns are expected to be filed electronically. The average refund in 2021 is $3,021, as of 2/26/2021.
  • 30% of people say making a math mistake is their biggest Tax Day fear, and 29% worry most about not having enough money. That edges out identity theft (22%) and getting audited (19%).
  • 38% of Americans would move to a different country and 27% would get an “IRS” tattoo for a tax-free future.
  • 50% of people would rather do jury duty than their taxes. 1 in 4 would prefer talking to their kids about sex. More than 10% would swim with sharks, spend the night in jail and drink expired milk.

To view the full report and your state’s rank, please visit:
https://wallethub.com/edu/states-with-highest-lowest-tax-burden/20494