The average US household pays more than $8,800 in federal income tax a year, according to the Bureau of Labor Statistics, but state and local taxes differ wildly across America. In fact, living in a state with low income tax rates doesn't guarantee a low tax rate overall, as real estate, vehicle property, and sales and excise taxes also come into play. Taxpayers in the states with the highest levies pay three times more their counterparts in the states that boast the lowest burdens, according to WalletHub, which has worked out the overall rates for median households in every state and DC across the above four types of taxation. From the least to the most tax-friendly, click or scroll through to discover how each state and DC compares.

Annual taxes are given for a median US household with an annual income of $63,218.

Illinois is one of 24 states that doesn't levy vehicle property tax, and the sales and excise tax rate is around the national average, but the state imposes the second-highest real estate tax rate in the country – a whopping 7.82% – as well as an income tax rate of 2.90%. For a typical household, paying these taxes would amount to $9,488 a year at a rate of 15.01%, the highest in America. Contrary to what you might think, chunkier tax revenues don't necessarily translate to better public services, with Illinois ranked a disappointing 22nd in the country by  WalletHub in a separate analysis.

Althought Connecticut's income and sales and excise tax rates are slightly below average, the state's real estate tax rate is almost as high as Illinois' at 7.37% and vehicle property tax is a stiff 1.03%. In terms of what people get for their money, Connecticut is placed fifth for public services, but its taxpayers certainly pay through the nose and the state is actually the most tax-expensive when cost of living is taken into account. Overall, for a typical household paying these taxes would amount to $9,379 a year, at a rate of 14.84%.

New York's real estate tax and income rates are among the top 10 highest in the country and sales and excise tax at 4.81% is well above average, though vehicle property tax isn't collected. For a typical household, paying New York's taxes would amount to $8,900 a year, at a rate of 14.08%. New York ranks 19th in the country for public services, but only 44th for taxpayer return on investment (ROI), which factors in federal taxes and funding to give a comprehensive picture of state spending per capita. 

The quality of public services is poorer in Pennsylvania – the state is placed 24th nationally – but its taxpayers don't pay a whole lot less than their counterparts in New York. At 5.45%, the real estate tax rate is the nation's 10th highest, while only three other states levy a steeper income tax rate. Sales tax, however, is about average, and vehicle property tax doesn't exist. As a whole, a typical household would pay $8,830 a year in Pennsylvania, at a rate of 13.97%..

Over in Kansas, the rate of sales tax is considerably higher at 5.49%, but the income tax rate is lower at 2.33%, as is the rate of real estate tax, which is set at 4.84%. Unlike New York, the Sunflower State does have a vehicle property tax of 0.77%. Public services aren't the best but aren't awful either, with the state ranked 29th in the country by this metric. A typical household would have to pay $8,488 a year in taxes in Kansas, at a rate of 13.43%.

Neighboring Nebraska, on the other hand, delivers stellar public services, bagging the number two spot in the state rankings, and so it should considering how much its taxpayers contribute. Real estate tax is the most taxing – the rate of 5.94% is the nation's eighth-highest – and vehicle property and sales and excise tax rates are above average. That said, the state's rate of income tax is relatively light at 2.08%. A typical household would pay $8,386 a year in Nebraska, at a rate of 13.27%.

Another state that provides superior public services, Wisconsin doesn't hold back when it comes to collecting taxes in order to fund them, and its real estate tax rate is even higher than Nebraska's at a bulging 6.37%. The income tax rate is also higher, coming in at 2.96%, but the rate of sales and excise tax is reasonable and vehicle property tax isn't levied. A typical household would pay annual taxes of $8,357, at a rate of 13.22%, in the state.

Wisconsin is one of several states that are enacting tax cuts in light of a surplus of funds thanks to an unexpected economic rebound following the worst of the COVID-19 pandemic. On 8 July, Governor Tony Evers approved a GOP-initiated tax cut that would slash income tax by a total of $2 billion, with around three-quarters of the cuts only impacting Wisconsinites earning more than $100,000 each year. The average resident earning $61,000 will have their taxes cut by $488 this year and $975 over the next two years, according to Revenue Secretary Peter Barca.

Iowans get what they pay for given their state is ranked in the top 10 for public services. Rates across all four key tax types are above average, with the real estate tax rate the most excessive of them all at 5.39% – only 11 other states levy a higher rate – followed by the rate of income tax, which stands at 2.89%. A typical household would pay annual taxes of $8,334 in Iowa, at a rate of 13.18% – but not for much longer.

A series of tax cuts were signed into law on 16 June. State inheritance tax will be phased out altogether over the next four years, saving taxpayers nearly $100 million. The bill will also reduce the number of income tax brackets from nine to four and bring the top income tax rate down from 8.53% to 6.5%. Governor Kim Reynolds has also said that further cuts to income tax are in the pipeline for next year.

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Ohioans pay the exact same tax rate overall as their counterparts in Iowa, at 13.18%, but receive lower-quality public services, with the Buckeye State ranked 26th nationwide. And while real estate is taxed at a similar rate of 5.36%, income and sales and excise tax rates are higher, though vehicle property tax is non-existent. Living in Ohio would see a typical household currently pay $8,329 a year in tax, although this is set to change thanks to a new two-year budget signed in at the end of June. The new legislation means that only those earning more than $25,000 will pay income tax – an increase on the previous threshold of $22,151 – and the rates paid by taxpayers will drop for everybody except for those earning more than $221,301. In total, the tax measures add up to $1.7 billion in relief.

Taxpayers in New Jersey enjoy decent public services and low rates of income and sales and excise tax, which are set at 0.78% and 3.48% respectively, and don't pay a dime in property vehicle tax. They are hammered, however, with the highest rate of real estate tax in the country, an eye-watering 8.57%. Overall, a typical household would pay $8,117 a year in taxes, at an overall rate of 12.84%.

Little Rhody is big on taxation, but the state does reward taxpayers with better than average public services. And although the real estate tax rate of 5.61% is the ninth-highest in America and the vehicle property rate is super-high too at 1.36%, income and sales and excises tax rates are relatively modest. A typical household would pay $8,103 a year, at a rate of 12.82%.

Texas is one of five states with no income tax, and vehicle property tax isn't levied either, two factors that may have attracted Elon Musk to make the state his home and HQ for Tesla. But boy, does the Lone Star State make up for this with the two other key taxes. The real estate tax rate of 6.81% is the seventh-highest in the land, while only three other states levy a heavier sales and excise tax, which is set at 6.60%. Annual taxes reach $8,083 for the average household, at a rate of 12.79%.

At the opposite end of the scale, Kentucky, which ranks 23rd for public services nationwide, takes a bigger chunk of its citizen's paychecks than any other state, with the income tax rate set at a massive 5.01%. The vehicle property tax rate is high as well, coming in at 0.57%, but the rate for real estate tax is below average and the state's sales and excise tax rate is the 15th lowest in the US at 3.94%.  Overall, a typical household will pay less than $8,000 a year in the state, at a rate of 12.48%.

Michigan is eight spots lower down the rankings for public services. Despite this, taxpayers part with only slightly less overall compared to those in Kentucky. Although lower, the income tax rate is still among the highest in America at 2.95%, the real estate tax rate is a budget-smashing 5.29%, and vehicle property tax stands at 0.23%. The rate for sales and excise tax, however, is on the low side at 3.75%. Overall, a household would pay annual taxes of $7,728 at a rate of 12.22%.

Washington scores better for public services but actually offers taxpayers a poorer return on investment. They pay zero property and income taxes, and a real estate tax rate of 3.38%, which is only marginally above average, but incur the highest sales and excise tax rate in America at 8.65%. This set-up tends to favor the better-off and worsen racial and income inequalities, which is perhaps why Governor Jay Inslee stepped up to enact a Robin Hood-style approach to taxes in the state in May. As of fiscal year 2023, the state’s wealthiest residents will be subject to a new capital gains tax that claims 7% of all profits on sales of investments that top $250,000, while the “Working Families” tax rebate will see 420,000 lower-income Washingtonians receive annual payments of between $300 and $1,200. As it currently stands, annual taxes cost $7,601, at a rate of 12.02%, for a typical household.

The taxpayers of Mississippi are some of the most hard done-to in America. Like Washington, its system isn't the most progressive, with low-ish real estate taxes but a high sales and excise tax rate that puts more of a burden on less affluent members of society. The income tax rate is higher than average and the vehicle property tax rate stands at a bulky 1.38%, yet only four states score poorer for public services. A typical household would pay annual taxes of $7,569 at a rate of 11.97%.

Maine delivers a much better return for its taxpayers, with the state placed 13th in the nation for public services, and has a more progressive tax system too. The real estate tax rate, while not excessive, is high at 4.67%, as is the rate for vehicle property tax, while the income tax rate is just 2.13% and the sales and excise rate is set at 4.06%, the 18th-lowest in the country. Annual taxes would reach $7,465 for a typical household, at a rate of 11.81%.

Indiana's public services are ranked lower, but still far better than average. Income tax, which is collected at 3.56%, is high, and only five other states levy a higher rate. The sales and excise tax rate is high too at 4.78% and the rate for vehicle property tax is set at an above-average 0.47%. The real estate tax rate of 2.93%, by contrast, is lower than the nationwide median. For a typical household, Indiana's annual taxes would cost $7,430, at a rate of 11.75%.

Vermonters get heaps back for their tax dollars, and only one other state provides better public services. Unlike Indiana, real estate taxes are a big cash generator for the state and the rate of 6.54% is exceedingly high, whereas vehicle property tax doesn't exist, and income and sales and excise tax rates are considerably lower than the national average. Annual taxes would reach $7,347 at a rate of 11.62% for a typical American household.

Maryland's taxpayers also get good value for money from their tax dollars as the state is ranked 10th in the country for public services. Vehicle property tax isn't collected and the sales and excise tax rate is the ninth-lowest in America at 3.69%. The rate for real estate tax is above average, however, and Maryland's rate of income tax, which is set at 4.05%, is the fourth-highest nationwide. Maryland's annual taxes would cost $7,261 for a typical household at a rate of 11.49%.

Oklahomans endure drastically poorer public services than Maryland – the state is ranked 42nd nationwide – yet pay out just a shade less in tax, with the overall rate for a typical household coming in at 11.44%. The rate of sales tax is sky-high at 6.07%, but the real estate tax rate is about average, there is no vehicle property tax to speak of and the rate for income tax is below the median. Income tax is set to drop even further thanks to the most recent budget signed in by Governor Kevin Stitt on 21 May. Effective from the start of 2022, corporate income tax will drop from 6% to 4%, while individual income tax will decrease by 0.25% across the board, bringing the highest rate down to 4.75%. As it stands, the typical household currently pays $7,235 a year.

Conversely, Arkansan households pay a smidgen less proportionally in state and local taxes than their counterparts in Oklahoma, yet only get slightly better public services given the state is placed 40th in the country. The real estate tax rate is low at 2.15%, but the rates for the other key taxes are high, and the sales and excise tax rate is one of the steepest in America at 6.30%. In Arkansas, a typical household would pay annual taxes of $7,235 at a rate of 11.28%.

Although Minnesota's overall tax rate of 11.27% isn't the lowest in America, taxpayers do get abundant returns. Public services are outstanding, with the state ranked the nation's number one in this respect. And whereas real estate, income, and vehicle property tax rates are above average, the rate for sales and excise tax is relatively light at 4.17%. In Minnesota, annual taxes would reach $7,128 for a typical household.

Public services aren't half as good in Missouri, which is placed 38th in the country by this metric. Its sales and excise tax rate is a touch lower than in Minnesota at 4.16% but, as is the case there, Missouri's other three key taxes all exceed the nationwide median: the rate for real estate tax is 3.34%, the income tax rate is set at 2.71%, and the rate for vehicle property tax stands at 1.04%. A typical household would pay $7,111 a year at a rate of 11.25%.

South Dakota delivers the third-best taxpayer return on investment in the US and public services are better than average. Income and vehicle property taxes aren't levied, but the state balances this out by whacking on a sales and excise tax rate of 6.64%, the second-highest in America, along with a fat 4.52% real estate tax rate. A typical household would pay annual taxes of $7,055 at a rate of 11.16%.

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Across the country in Massachusetts, sales and income tax is the sixth-lowest in America at 2.96%, while rates for the other key tax types are above average, though the state's residents do enjoy good-quality public services. In Massachusetts, annual taxes would cost $6,890 at a rate of 10.9%.

Virginia's taxpayers get a lot out of what they put in, with the state ranked third in the country for public services. Still, they hand over more than most in terms of income tax and the vehicle property tax rate is the highest in the land at 1.60%. The rate for real estate tax is below average though and the sales and excise tax rate of 3.54% is the eighth-lowest in America. In Virginia, annual taxes for a typical household would cost $6,783, at a rate of 10.73%.

Hawaii is ranked 33rd in the nation for public services but has the worst taxpayer return on investment when federal taxes and funding are added to the equation. The Aloha State is another that has a very high sales and excise tax rate, in this case 5.96%, but a minimal rate of real estate tax, which at 0.96% is the lowest in America. Vehicle insurance tax isn't collected but the income tax rate stands at 3.74%, which is the third-highest nationwide. A typical household would pay $6,736 a year in Hawaii, at a rate of 10.66%.

Low-ish taxes don't make up for the fact public services in Louisiana are woefully bad – the state has the worst in the country according to WalletHub's analysis. Mirroring the situation in certain other states, real estate tax is comparatively light, while the sales and excise tax rate is a whopping 6.61%, meaning the tax structure tends to penalize the poorer in society and reward the wealthy. New tax rates could come into force later this year if they receive voter approval in October. According to the new budget, residents would pay 1.85% on their first $12,500 of income, down from 2%; taxpayers earning up to $37,500 would pay 3.5%, compared to the current 4%; and anybody earning more than $50,000 would benefit from the biggest cut: 4.25% down from 6%. For now, Louisiana's annual taxes reach $6,723 for the average household, at a rate of 10.63%.

North Carolina delivers better public services than Louisiana, but is nevertheless beaten by 31 other states in this category. Breaking it down, the income tax rate in the state is set at 2.87%, the rate of vehicle property tax is 0.48%, the figure for sales and excise tax is 4.36%, and the real estate tax rate stands at 1.88%. A new budget is currently in the making however, as the Senate approved a reduction of the state’s flat personal income tax rate from 5.25% to 3.99% on 24 June. If passed, the bill would also see corporate tax disappear altogether by 2028. North Carolina's taxes would currently set a typical household back $6,710 a year, at a rate of 10.61%.

Public services aren't great in Georgia, with the state ranked 34th in the country. The real estate tax rate is higher than average at 3.17%, ditto the rate of sales and excise tax, which stands at 4.39%, but the biggest hitter is Georgia's income tax rate of 3.00%. On the upside, vehicle property tax is non-existent. Georgia was the first state to enact tax cuts in 2021 when many local authorities found themselves flush with cash, and Governor Brian Kemp signed in changes that increase the salary threshold for paying income tax, among other measures. As of 1 January 2022, individual filers will be saving around $43 each year and couples around $63. Until then, Georgia's annual taxes cost a typical household $6,683, at a rate of 10.57%.

New Mexicans have a pretty raw deal since the state's public services are ranked the second-worst in America and return on taxpayers' investment is among the most dismal. And while vehicle property tax isn't collected and income and real estate tax rates are below average, taxpayers in the state are stung with sales and excise duty of 6.23%. Annual taxes would cost a typical household $6,663 at an overall rate of 10.54%.

New Hampshire's taxpayers get the best return on investment in the country. Public services in the state are top-notch, despite a low overall tax rate for a typical household of 10.06%, which is almost 7% below the nationwide median. Sales and excise tax is the third-lowest in America at 1.35% and income tax is set at just 0.50%. Things are set to get even better for New Hampshire residents as Governor Chris Sununu recently signed a new budget into law that includes phasing out the 5% rate that taxpayers currently pay on interest, as well as the 1% rate on dividends. These taxes will disappear altogether over the next half a decade, which will also usher in further cuts to tax on business profits. Right now, the real estate tax rate is extremely high at 7.49% and vehicle property tax is significantly pricier than average. The average tax bill typically reaches $6,358 a year.

North Dakotans get more bang for their buck than many Americans, with the state ranked fourth for public services, belying its low-tax status. Vehicle property tax isn't levied and income tax stands at just 0.59%. On the flipside, the real estate tax rate is higher than average, and the sales and excise tax rate is a wallet-busting 6.06%. In North Dakota, annual taxes would cost a typical household $6,343, at a rate of 10.03%.

The situation is somewhat different in West Virginia. The real estate tax rate in the state, which ranks 39th for public services, is low at 2.01%, as is the rate for sales and excise tax. But vehicles are taxed at a rate of 0.66% and the state's income tax rate is one of the steepest in America, topping 3.04%. Plans are afoot to slash this figure, but the move would be offset by a hike in sales tax. A typical household would spend $6,124 a year on taxes in West Virginia, at a rate of 9.69%.

Arizona is a low-tax state but with inferior public services, ranking 43rd in the country. The rates for income and real estate tax are decidedly low at 1.46% and 2.29% respectively, but the sales and excise tax rate of 5.11% is most definitely not, and the vehicle property tax rate exceeds the national average too. Taxes are set to drop however, as Governor Doug Ducey signed in a new budget at the end of June. The average taxpayer will benefit from a 13% reduction in income tax, saving them around $350 each year. The state also hopes to impose a flat tax rate – where everybody pays the same rate regardless of income – of 2.5%, which would be the lowest flat tax rate in America. Annual taxes currently cost a median household $6,021, at a rate of 9.52%.

Alabama's overall rate of 9.10% makes it a low-tax state, and while public services are among the worst in the country, taxpayers who own property benefit from the miniscule real estate tax rate of 1.42%, which is America's second-lowest. The state's sales and excise tax rate, however, is much higher than average, burdening the poorer, and the vehicle property tax rate surpasses the national median, as does the income tax rate. Typically, annual taxes in Alabama would cost $5,754.

DC's sales and excise tax rate is also higher than the nationwide median at 4.66%. Be that as it may, the taxpayers of the nation's capital don't do too badly at all across the three other key tax types. Vehicle property tax isn't collected, the real estate tax rate stands at just 1.93% and the rate for income tax is a respectable 2.45%. A typical household would pay annual taxes of $5,715 at a rate of 9.04%. However, while the overall tax rate is one of the lowest, a debate over DC not being a state and its citizens experiencing "taxation without representation" (in Congress) has raged for decades. In fact, in June 2020 the House passed a bill to make DC the 51st state, but with lots of Republican opposition it's unlikely to pass the Senate and become law.

Oregon is ranked 36th for public services and 35th for return on taxpayers' investment. Its real estate tax rate is above average at 3.35% and the rate for income tax is America's second-highest, while vehicle property tax isn't levied in the state and the sales and excise tax rate is the lowest in the country at a barely noticeable 1.10%. Oregon's taxes would cost a typical household $5,686 a year on average, at a rate of 8.99%.

The overall effective tax rate for a median household in South Carolina matches Oregon's at 8.99%, but the similarities stop there. Public services are poorer – only four states score lower – and the tax system is structured differently. The real estate tax rate is particularly low at 1.96%, the rate for income tax is below average, vehicle property is taxed at 0.94%, and the sales and excise tax rate is set at 3.80%. That said, South Carolina's taxes would cost a typical household slightly less, at just $5,683 a year.

California is another state where the sales and excise tax rate is rather high, in this case 4.74%, but rates for the other three tax types are low, with the income tax rate especially forgiving at 1.36%. The downside is taxpayers in the state get a relatively meager return when federal taxes, funding and overall spending are considered, and the state is ranked a lousy 37th for public services. A typical household would pay $5,662 a year, at a rate of 8.96%, in California.

Public services are even worse in Tennessee – only nine states score less for this metric. Nevertheless, taxpayers in the state do pay less, with property vehicle tax non-existent, the income tax rate a tiny 0.1%, and the rate for real estate tax only 2.45%. Still, the sales and excise tax rate is among the highest in America at 6.17%. Taxes in Tennessee would cost a typical household $5,513 a year, at an overall rate of 8.72%.

Homeowners in Colorado can rest easy given the real estate tax rate is just 1.76%, the third-lowest in the country. Motorists are no doubt less thrilled about the 0.71% vehicle property tax – the state is ranked 39th in this respect – but the other key tax rates, income and sales and excise, are lower than the national average, though public services are considered below par too. Annual taxes would cost a typical household $5,396, at an overall rate of 8.54%.

Idaho doesn't impose a vehicle property tax and rates across the other three key tax types are all below the countrywide median, while public services are slightly better than average. On 10 May, Governor Brad Little announced that the state was about to enact its largest ever tax cut, which would save Idahoans a total of $435 million. Included in the bill is a one-time $220 million tax rebate, which will see every taxpayer and dependent receive a minimum of $50, as well as $163 million-worth of ongoing tax reductions such as lowering the top personal and corporate tax rates from 6.925% to 6.5%. The seven tax brackets will also be condensed into five. As it currently stands, a typical household’s taxes would cost $5,329 a year, at an overall rate of 8.43%.

Utah is up next. The Beehive State impresses with high-quality public services – the seventh-best in the country – yet its overall tax rate is the nation's seventh-cheapest. Vehicle property tax doesn't exist in the state, real estate and sales and excise taxes are among the lowest in the country, and the income tax rate at 2.44% is reasonable, albeit a little above average. Annual taxes would reach $5,274 for a typical household, at an overall rate of 8.34%.

As is the case in 23 other states, vehicle property tax stands at zilch in Florida. Income tax isn't collected either in the Sunshine State, but any savings taxpayers make are offset somewhat by above-average real estate and sales and excises taxes. Florida is ranked 30th for public services, but a very impressive second for taxpayer return on investment once federal funding is considered. A typical household would contribute $5,204 a year in taxes in Florida, at a rate of 8.23%.

The Equality State has a vehicle property tax rate of 0.71%, but saves its taxpayers money elsewhere. While the sales and excise tax rate is also quite high at 5.25%, Wyoming is a zero income tax state, plus the real estate rate is the 10th lowest in the country. Public services are decent too, with the state placed 17th in the nation. A typical household would pay just $5,086 a year in taxes, at an overall rate of 8.05%.

Staying in the West, taxpayers in Nevada contribute slightly more in total than their counterparts in Wyoming, but get poorer public services – the Silver State is ranked 44th by this metric. Be that as it may, the rate of income tax is only 1% and the percentage at which real estate is taxed stands at just 2.07, though the vehicle property tax rate of 0.71% is high. A typical household would pay $5,017 a year in tax, at an overall rate of 7.94%.

From one domestic tax haven to another, Montana also takes the minimal approach but ranks higher for public services. Although the income and vehicle property tax rates aren't the lowest at 2.58% and 0.49% respectively, the real estate tax rate is just 2.88% and the overall rate for sales and excise tax is the second-lowest nationwide, averaging out at a minuscule 1.16%. At the current rate taxes in Montana would be less than $5,000 a year for a typical household, at an overall rate of 7.11%.

However, new tax rates are coming, with two-thirds of the changes set to benefit the top 10% of income earners, according to Revenue Department analysis. From 2022, the top income tax rate will drop from 6.9% to 6.75%, and as of 2024 between 55,000 and 93,000 low-income taxpayers won’t have to pay any state income tax at all, while some tax breaks will be axed. 

Delawareans receive good public services, with their state placed 17th in the nation in this respect. Fittingly, the First State comes first in terms of tax friendliness when cost of living is considered. Vehicle property and sales taxes are non-existent, the real estate tax rate is mega-low at 1.96%, while the excise tax rate is just 2.89%. That said, the state's taxpayers incur income tax at a higher than average rate of 2.89%. But for a typical household taxes wouldn't even reach $4,000 a year, at an overall rate of 6.25%.

Alaska's real estate tax rate may be higher than the national median at 4.11%, but the Last Frontier levies zero income and vehicle property dues, while the sales and excise tax is set at at just 1.73%, making it the most tax-friendly location in the US. Still, low taxes translate to paltry revenues for the state coffers and this is arguably reflected in Alaska's public services, which are ranked the third-worst in the country. For a typical household this would result in annual taxes of $3,694, at an overall rate of 5.84%.

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