Hawaii, New York Top 2026 Tax Burden Report

With Tax Day approaching on April 15, personal-finance company WalletHub has released its "2026 Tax Burden by State" report.

"It's easy to be dismayed at tax time when you see just how much of your income you lose. Living in a state with a low tax burden can alleviate some of that stress. Some states charge no income tax or no sales tax, although all states have some form of property taxes and excise taxes," said Chip Lupo, WalletHub analyst. "Oregon has the highest individual income tax burden while Vermont has the highest property tax burden, and Hawaii has the highest sales and excise tax burden. When considering all types of taxes together, Hawaii has the highest overall burden."

WalletHub compared all 50 states across three major components of state taxation (property taxes, individual income taxes, and sales and excise taxes) measured as a percentage of total personal income.

States with highest tax burdens

1. Hawaii (13.30%)

2. New York (12.39%)

3. Vermont (11.10%)

4. New Mexico (10.75%)

5. Maine (10.01%)

6. Illinois (9.92%)

7. Maryland (9.70%)

8. New Jersey (9.52%)

9. Oregon (9.46%)

10. Rhode Island (9.29%)

States with lowest tax burdens

41. Oklahoma (7.05%)

42. Idaho (7.04%)

43. North Dakota (7.02%)

44. Wyoming (6.70%)

45. South Dakota (6.38%)

46. Delaware (6.28%)

47. Florida (6.27%)

48. Tennessee (6.21%)

49. New Hampshire (5.38%)

50. Alaska (4.92%)

"The link between tax rates and economic expansion is a constant balancing act between attracting investment and maintaining the infrastructure that businesses need to thrive. Recent data indicate that the nine states without a personal income tax have experienced some of the highest net migration and GDP growth rates over the last decade. A 2026 report suggests that phasing out state income taxes could increase total GDP by 1.6% by encouraging new startups and attracting high earners," said Andrew Burnstine, associate professor, Lynn University. "However, the most successful economies are those that strike a middle ground, keeping tax burdens competitive while investing enough in education and transport to build a high-quality workforce. Reliable economic growth is best sustained by a tax structure that is stable enough to fund the long-term assets that drive private sector innovation."

To view the full report and your state's rank, visit here.