Here are the states where residents will pay the biggest share of their income in taxes this year (2024)

FAQs

In which states do people pay the most taxes? ›

High-Income Taxpayers Paid the Majority of Federal Income Taxes. In 2021, the bottom half of taxpayers earned 10.4 percent of total AGI and paid 2.3 percent of all federal individual income taxes. The top 1 percent earned 26.3 percent of total AGI and paid 45.8 percent of all federal income taxes.

The Biggest Taxpayers

In 2023, according to an estimate of the Tax Policy Center, 67% of all federal income tax collected will come from the top 20% of earnings, who were bringing home more than $189,200 annually.

The five states with the highest average local sales tax rates are Alabama (5.29 percent), Louisiana (5.11 percent), Colorado (4.91 percent), New York (4.53 percent), and Oklahoma (4.49 percent).

Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming do not levy state income taxes, while New Hampshire doesn't tax earned wages. States with no income tax often make up the lost revenue with other taxes or reduced services.

1. Bridgeport, Connecticut. As one of the wealthiest cities in America, Bridgeport carries the highest overall tax rate in the nation. Wealthy taxpayers earning over $150,000 per year are on the hook for up to 22% in state and local taxes.

Who Does Not Have to Pay Taxes? Generally, you don't have to pay taxes if your income is less than the standard deduction, you have a certain number of dependents, working abroad and are below the required thresholds, or are a qualifying non-profit organization.

Residents in Connecticut, Massachusetts, New Jersey and New York have some of the highest tax bills in the nation. They also pay thousands more in federal taxes than their state receives back in federal funding.

Overall, out of the 58 million taxable households that pay no income taxes some 56 percent of African American households pay no income taxes, while 40 percent of Asian American households and White American households do not. Of the 14 million non-filers, Hispanics make up 12 percent of the total.

Who pays the most in taxes and why? ›

Contrary to the oft-repeated claim that high- income Californians pay an unfair amount of taxes, it is actually California's low-income families who pay the largest share of their incomes in state and local taxes.

If your personal or financial circ*mstances have changed, you may end up owing taxes to the IRS when you usually get a refund. Common reasons include underpaying quarterly taxes if you're self-employed or not updating your withholding as a W-2 employee.

There are five states with no general statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon.

Hawaii is the state with the lowest real estate property tax rate, while New Jersey is the state with the highest, according to personal finance site WalletHub.

Eight US states have no income tax. While New Hampshire has no tax on earned wages, the state does charge a flat individual income tax rate of 4% on investment earnings. Five states including Alaska, Delaware, Montana, Oregon, and New Hampshire, have no state sales tax.

California has one of the highest tax burdens among any state in the country.