Tax Burden by State
|Top Ten||Taxes Paid By Residents, % of Income||Taxes Paid by Non-Residents (%)|
24/7 Wall Street -- "Different states tax their residences at different levels. In some states, like New Jersey, residents pay 12.2% as a percentage of their income. In others, like Alaska, they pay as little as 6.3% (see table above) . 24/7 Wall St. reviewed a report recently released by the Tax Foundation to identify the states where residents paid the most and least in state and local taxes as a percent of income.
The amount varies widely as not all states have the same sources of revenue. Some get more from business levies than others. Some have a statewide sales tax. Some cities and towns tax property based on value, while others don't. The issue of what people are taxed at the state and local level is complex, among other reasons, because states often receive a large amount of their tax receipts from sources other than the simple payments of state residents.
MP: The table above shows that for the ten states with the highest tax burden on residents, the average tax rate as a share of residents' income is 10.9% and they pay 74.1% of the taxes collected; for the ten states with the lowest tax burden on residents, the average tax rate is only 7.7% because almost half of total state taxes are generated from non-residents (47.9%).