Low- and middle-income families generally tend to pay higher effective tax rates than the rich, but the burden varies by state for both rich and poor. The personal-finance website WalletHub has released its report on 2019’s Best States to Be Rich or Poor from a Tax Perspective as well as accompanying videos.
In order to identify the states where people in different income brackets spend the most and least on taxes, WalletHub calculated the share of one’s income that he or she contributes toward sales and excise taxes, property taxes and income taxes.
Best & Worst States for Low-income Earners:
Best & Worst States for High-income Earners:
- The overall tax burden for low-income earners is three times higher in Washington than in Delaware.
- The overall tax burden for middle-income earners is three times higher in New York than in Alaska.
- The overall tax burden for high-income earners is four times higher in New York than in Alaska.
For the full report and to see where your state ranks, please visit: