Ranked by the Tax foundation
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 lowest (see the Top 10 list in the May 14 Human Events for the 10 highest tax burdens). 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 at www.TaxFoundation.org.
1. Alaska - State-Local Tax Burden: 6.6%
Per Capita Tax Burden: $2,729
Per Capita Income: $41,469
2. New Hampshire - State-Local Tax Burden: 8.0%
Per Capita Tax Burden: $3,504
Per Capita Income: $43,745
3. Tennessee - State-Local Tax Burden: 8.5%
Per Capita Tax Burden: $3,054
Per Capita Income: $35,960
4. Delaware - State-Local Tax Burden: 8.8%
Per Capita Tax Burden: $3,804
Per Capita Income: $43,471
5. Alabama - State-Local Tax Burden: 8.8%
Per Capita Tax Burden: $3,090
Per Capita Income: $35,007
6. Oklahoma - State-Local Tax Burden: 9.0%
Per Capita Tax Burden: $3,248
Per Capita Income: $36,077
7. South Dakota - State-Local Tax Burden: 9.0%
Per Capita Tax Burden: $3,435
Per Capita Income: $38,072
8. Texas - State-Local Tax Burden: 9.3%
Per Capita Tax Burden: $3,533
Per Capita Income: $38,005
9. Wyoming - State-Local Tax Burden: 9.5%
Per Capita Tax Burden: $4,340
Per Capita Income: $45,881
10. Montana - State-Local Tax Burden: 9.7%
Per Capita Tax Burden: $3,353
Per Capita Income: $34,415
