In its annual report on state and local tax burdens, the Tax Foundation says that “state and local taxes will consume a record-setting 11% of the nation’s income in 2007.” Below are the 10 states in which the state-local tax burden as a percentage of income is greatest. The Tax Foundation compares state and local tax burdens by “combining the different levels of government, counting every tax and comparing those totals” to a measure of income. The entire report is available on the Tax Foundation Website.
1. Vermont—State-Local Tax Burden: 14.1%
Per Capita Tax Burden: $5,387
Per Capita Income: $38,306
2. Maine—State-Local Tax Burden: 14.0%
Per Capita Tax Burden: $5,045
Per Capita Income: $36,117
3. New York—State-Local Tax Burden: 13.8%
Per Capita Tax Burden: $6,522
Per Capita Income: $47,176
4. Rhode Island—State-Local Tax Burden: 12.7%
Per Capita Tax Burden: $5,291
Per Capita Income: $41,809
5. Ohio—State-Local Tax Burden: 12.4%
Per Capita Tax Burden: $4,597
Per Capita Income: $37,020
6. Hawaii—State-Local Tax Burden: 12.4%
Per Capita Tax Burden: $5,014
Per Capita Income: $40,455
7. Wisconsin—State-Local Tax Burden: 12.3%
Per Capita Tax Burden: $4,736
Per Capita Income: $38,639
8. Connecticut—State-Local Tax Burden: 12.2%
Per Capita Tax Burden: $6,756
Per Capita Income: $55,536
9. Nebraska—State-Local Tax Burden: 11.9%
Per Capita Tax Burden: $4,549
Per Capita Income: $38,373
10. New Jersey—State-Local Tax Burden: 11.6%
Per Capita Tax Burden: $5,991
Per Capita Income: $51,605
