How ‘Tax-Friendly’ Is Fla. Compared to Other States?

A MoneyGeek study including IRS, state, property, and sales taxes listed Florida. as the No. 4 least-expensive tax state. Total tax costs are about 5.6% of total income.

TAMPA, Fla. – It’s tax filing season and depending on where you live in the U.S., you could be forking over a very different-sized chunk of your income.

An analysis by MoneyGeek ranked every state by how “tax-friendly” it is. The analysts didn’t just look at income tax – they also factored in property taxes, plus state and local sales taxes.

To determine where people pay the highest tax burden, MoneyGeek looked at a hypothetical average family: a married couple with one kid, earning the median national income of $82,852, and owning a $349,400 home. The study breaks down how much this fictional family would pay in taxes in every state.

The states with the lowest tax burden, according to the analysis, were:

Wyoming (estimated taxes: 4% of income or $3,279)

Nevada (estimated taxes: 4.7% of income or $3,879)

Alaska (estimated taxes: 5.4% of income or $4,507)

Florida (estimated taxes: 5.6% of income or $4,632)

Tennessee (estimated taxes: 6.5% of income or $5,377)

Washington (estimated taxes: 6.5% of income or $5,414)

North Dakota (estimated taxes: 6.7% of income or $5,556)

Arizona (estimated taxes: 6.8% of income or $5,665)

South Dakota (estimated taxes: 7.2% of income or $5,938)

Delaware (estimated taxes: 7.3% of income or $6,074)

 

The states with the highest tax burden were:

Illinois (estimated taxes: 16.8% of income or $13,894)

Connecticut (estimated taxes: 15.1% of income or $12,545)

New Jersey (estimated taxes: 14.3% of income or $11,872)

New Hampshire (estimated taxes: 14.1% of income or $11,694)

New York (estimated taxes: 13.9% of income or $11,495)

Iowa (estimated taxes: 13.8% of income or $11,398)

Wisconsin (estimated taxes: 13.2% of income or $10,976)

Vermont (estimated taxes: 12.6% of income or $10,453)

Nebraska (estimated taxes: 12.6% of income or $10,446)

Michigan (estimated taxes: 12.4% of income or $10,239)

Based on its analysis, MoneyGeek also gave every state a letter grade on its “tax friendliness.” The states with A grades have the lowest tax burden on an “average” family, while the states with D or E grades have the highest tax burden.

MoneyGeek’s estimates only hold true for that hypothetical family,earning about $82,000 a year with a $349,000 house. A family who just bought a $1 million house in California would probably be paying a lot more in taxes, while a single person earning $40,000 in Texas would be paying less.

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