Top 10 States With the Lowest Taxes

When it comes to money, it’s not how much you make that matters, it’s what you keep. There are many expenses affecting pocketbooks across the nation, but taxes are the largest financial burden on Americans, as the average family pays almost $7,000 in state and local taxes each year. However, taxes can vary significantly between states.

WalletHub recently analyzed how state and local tax rates compare to the national median in all 50 states as well as the District of Columbia. The purpose was to determine which states pay the highest and lowest tax rates, and to see how each state stacks up against the national median. This comparison was based on nine different types of taxation: real estate taxes, state and local income taxes, vehicle property taxes, vehicle sales taxes, sales and use taxes, fuel taxes, alcohol taxes, food taxes, and telecom taxes.

Interestingly, taxpayers in the states with the highest taxes pay four times more than those in the states with the lowest taxes. Red states impose lower taxes, with an aggregate rank of 19.1 compared to 31.4 for blue states. Let’s take a look at the ten states with the lowest state and local taxes, according to WalletHub.