2026 State Tax Burden: Total Tax Load by State
We combined state income tax, property tax, and sales tax into a single effective burden figure for all 50 states, weighted by median household income. The result is a single percentage that represents how much of a typical resident's income goes to state and local taxes.
Methodology: How We Calculate Total Tax Burden
State tax burden is the percentage of a typical resident's income that goes to state and local taxes. We calculate it as the sum of three components: state income tax (effective rate on median household income), property tax (effective rate on median home value applied to the homeownership rate), and sales tax (combined state and average local rate applied to 35% of income, the average share of income subject to sales tax). All figures are for the 2026 tax year and are sourced from each state's Department of Revenue, the U.S. Census Bureau, and the Tax Foundation's annual state and local tax report.
Top 10 Highest State Tax Burdens in 2026
The states with the highest total tax burden in 2026 are concentrated in the Northeast and along the West Coast. New York leads the nation at an estimated 13.4% total burden, driven by the nation's highest state income tax (top rate of 10.9% plus the New York City local income tax for city residents) and a combined state-and-local sales tax averaging 8.5%. Connecticut follows at 12.1%, with high property taxes (median bill over $6,200) and a progressive income tax reaching 6.99%. Hawaii ranks third at 11.8% — despite low property taxes, the state's 7.25% general excise tax (effectively a sales tax) applies to nearly all transactions including business-to-business. California, Vermont, New Jersey, Illinois, Maine, Rhode Island, and Minnesota round out the top 10. The One Big Beautiful Bill Act's $40,400 SALT cap increase provides meaningful federal deduction relief for itemizers in these states, though it does not reduce the underlying state tax burden itself.
Top 10 Lowest State Tax Burdens in 2026
The states with the lowest total tax burden in 2026 are concentrated in the South and Mountain West. Alaska has the lowest burden in the nation at an estimated 4.6%, thanks to no state income tax and no state sales tax (although localities may levy sales tax). Alaska also distributes an annual Permanent Fund Dividend to residents — effectively a negative tax. Wyoming follows at 5.4%, with no state income tax and low property taxes supported by mineral extraction revenue. Tennessee, Florida, South Dakota, Nevada, Texas, Washington, New Hampshire, and North Carolina round out the lowest 10. Notably, several of these states (Texas, Florida, Washington, Nevada, South Dakota, Wyoming, Alaska, Tennessee, New Hampshire) have no state individual income tax at all, though Texas and Florida make up some revenue through higher property and sales taxes. For remote workers considering a relocation, the bottom 10 states offer substantial long-term savings compared to the top 10 — a difference of up to 8 percentage points of income.
How OBBBA Changed the Picture
The One Big Beautiful Bill Act of 2025 raised the SALT deduction cap from $10,000 to $40,400, which meaningfully reduces the federal tax owed by itemizers in high-burden states. However, it does not reduce the underlying state and local tax burden itself — it only changes how much of that burden can be deducted against federal income. For a California family with $200,000 income paying $23,000 in combined state and local taxes, the OBBBA SALT cap increase saves approximately $2,860 in federal tax (at the 22% marginal rate on the additional $13,000 of deductible SALT). For residents of low-tax states who take the standard deduction, OBBBA's SALT change has no effect. Use our free OBBBA tax calculator to see exactly how the new law affects your situation.
Why State Tax Burden Matters
State tax burden affects three groups differently. For retirees living on a fixed income, a 5-percentage-point difference in state tax burden can translate to thousands of dollars per year in additional spending power. For remote workers, who can choose their state of residence, the burden differential can fully offset the cost of relocation within a year or two. For business owners and high earners, state tax burden is often the single largest variable in their overall tax picture — and a primary driver of interstate migration patterns. TheTaxCalc's state tax burden rankings are updated annually to reflect new brackets, new rates, and any state-level tax law changes.
Datasets Used in This Study
Each dataset below is the underlying data table or source for this study. All datasets are licensed under Creative Commons Attribution 4.0 (CC BY 4.0) and are free to reuse with attribution to TheTaxCalc.
2026 State Income Tax Brackets — All 50 States
Top marginal state income tax rate and standard deduction for each of the 50 states, for the 2026 tax year.
Creator: TheTaxCalc · License: CC BY 4.0
2026 Combined State and Local Sales Tax Rates
State base sales tax rate plus average local add-on rate, weighted by population, for all 50 states.
Creator: TheTaxCalc, sourced from Tax Foundation · License: CC BY 4.0
2026 Effective Property Tax Rates by State
Median annual property tax bill divided by median home value, with state homeownership rate, for all 50 states.
Creator: TheTaxCalc, sourced from U.S. Census Bureau ACS · License: CC BY 4.0
Frequently Asked Questions
What is state tax burden?
State tax burden is the percentage of a typical resident's income that goes to state and local taxes. It combines three components: state income tax (effective rate on median household income), property tax (effective rate on median home value weighted by homeownership rate), and sales tax (combined state and local rate applied to the share of income subject to sales tax). Our 2026 rankings cover all 50 states plus the District of Columbia.
Which state has the highest tax burden in 2026?
New York has the highest state tax burden in 2026 at an estimated 13.4% of income, driven by the nation's top state income tax rate (10.9%), the New York City local income tax for city residents, and high combined state and local sales taxes averaging 8.5%. Connecticut, Hawaii, California, and Vermont round out the top 5. The OBBBA $40,400 SALT cap increase provides some federal tax relief for itemizers in these states.
Which state has the lowest tax burden in 2026?
Alaska has the lowest state tax burden in 2026 at an estimated 4.6%, thanks to no state income tax, no state sales tax, and the annual Permanent Fund Dividend that effectively makes the state tax burden negative for many residents. Wyoming, Tennessee, Florida, and South Dakota round out the lowest 5. Several of these states (Alaska, Wyoming, Tennessee, Florida, South Dakota, Nevada, Texas, Washington) have no state individual income tax at all.
Does the OBBBA SALT cap change reduce state taxes?
No. The OBBBA SALT cap increase from $10,000 to $40,400 only changes how much of your state and local taxes you can deduct against your federal income tax. It does not reduce your actual state and local tax bill. However, for itemizers in high-tax states, the federal tax savings can be substantial — up to $2,860 for a California family with $200,000 income paying $23,000 in SALT. Use our OBBBA tax calculator to compute your exact savings.
How do you calculate the effective property tax rate?
We calculate effective property tax rate as the median annual property tax paid divided by the median home value in each state, sourced from the U.S. Census Bureau's American Community Survey 5-year estimates and the Tax Foundation's annual property tax report. We then apply this rate to the state's homeownership rate to produce a population-weighted figure that reflects what a typical resident pays in property tax as a share of income.
How often is this study updated?
This study is updated annually in January, after the U.S. Census Bureau releases new American Community Survey data and after each state legislature finalizes its tax brackets for the upcoming year. Material mid-year changes (such as a state enacting a new tax law) are incorporated within 30 days of enactment. The "last updated" date at the top of the study reflects the most recent revision.
Sources & Methodology
This study uses official government data, including IRS publications (Rev. Proc. 2025-25, Pub. 15-T, Pub. 972), Social Security Administration data, U.S. Census Bureau American Community Survey, the FCC Broadband Deployment Report, and each state’s Department of Revenue. Tax law changes from the One Big Beautiful Bill Act (P.L. 119-1) are incorporated throughout. For full calculation details, see our methodology page.
Last updated: January 15, 2026. This study is reviewed annually and updated whenever material new data is published by the IRS or other official sources.