Tax Foundation looked at how much of a burden each US state's residents carry nationally when they pay their share of state and local taxes.
As people live and work across state borders, and as they travel and spend money in different sates, their tax burden shifts.
To calculate each state's tax burden, Tax Foundation used different types of taxes — ranging from property tax to excise tax on alcohol and inheritance tax to severance tax — to determine how each state's taxpayers are represented.
Here's what Tax Foundation found looking at the difference between tax collections (calculated by the Census Bureau's State and Local Government Finance division) and its tax burden calculations.
Key Takeaways
-
Overall, in 2022, Tax Foundation estimates that nearly 20 percent of state tax revenue has come in via nonresidents.
-
Residents in three states have had the highest state-local tax burdens in 2022: New York (15.9 percent), Connecticut (15.4 percent) and Hawaii (14.1 percent).
-
Alaska (4.6 percent) has had the lowest state-local tax burden in 2022, followed by Wyoming (7.5 percent) and Tennessee (7.6 percent).
-
On a per capita basis, Tax Foundation estimates that residents of the District of Columbia ($2,594), Connecticut ($2,268), Wyoming ($2,045) and New Jersey ($1,952) pay the most out-of-state taxes to other states.
Via Tax Foundation.
[Photo by Kelly Sikkema on Unsplash]
